Got a 1099-K? Don't panic! This form reports payments you received from third-party payment networks like PayPal, Venmo, or Stripe. Think of it as a summary of your gross income received through these platforms.
Previously, you'd only receive a 1099-K if you had over $20,000 in gross payments AND more than 200 transactions. However, the IRS threshold is changing, and it's important to stay informed about the current reporting requirements. Check the IRS website for the latest details!
Remember, the 1099-K shows your *gross* income. This doesn't mean it's all taxable profit. You can deduct eligible business expenses like supplies, fees, and costs of goods sold. Keep accurate records of your income and expenses throughout the year to make tax time easier. Consult with a tax professional for personalized advice on how to handle your 1099-K and claim all eligible deductions. Understanding this form is crucial for accurate tax reporting and avoiding potential penalties.
