So I’ve been reading up somewhat on this but I’m unclear.
It used to be that a seller had to make $20, 000 AND a number in total of 200 sales before being given a 1099 from Paypal or any payment processor for that matter from what I understand.
Now I believe as long as a seller has $600 in money that runs through Paypal that Paypal is giving a 1099 to all sellers.
So if this is the case, does Amazon and Stripe do this also?
And even if this is not the case/scenario with our monies, what is the case now with 1099s being given to sellers from the payment processors?
Thanks from Sharon!
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EmpressDepot Reputation: 6829 See EmpressDepot's booth |
Hey, Sharon… thanks for the vote of confidence. I’m “popping in”.
All payment processors have to report your received payouts to the IRS on a 1099-K form if you exceed the limits. The IRS just postponed (delayed implementation) new reporting requirements that was supposed to take effect. However, the old (previously implemented) reporting requirements are still in effect.
Also, any expenses you have in the cost of selling can be subtracted from your income. However, be careful of trying to write-off part of your house since any space has to be used ONLY for business. If you get audited, your will have to provide proof of those business expenses. Home office deductions are RED FLAGS to the IRS.
The reported news states that "The Internal Revenue Service has announced a one-year delay of the new $600 tax reporting threshold to help ease the transition to the new reporting requirement for taxpayers, tax professionals, and online marketplaces.
As a result, for tax year 2022, only eBay sellers [URL removed] 1) exceed the reporting threshold of $20,000 and 200 transactions, 2) had backup withholding applied in 2022, or 3) are residents of states that have a lower reporting threshold will receive a Form 1099-K.
The delay does not change your income tax reporting obligations. "
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tomwayne1 Reputation: 8637 See tomwayne1's booth |
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