Do Not Ignore the 1099-K if you Received One for 2023

Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service released in November 2023, Notice 2023-74 PDF announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023. With that said, if you receive a 1099-K for 2023, do NOT ignore it – bring it to you tax appointment.

The IRS also announced it is planning for a $5,000 reporting threshold in 2024.

As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.

Who might get a form 1099-K?

Anybody who accepts payments from credit cards or third-party payment networks such as PayPal, Cash App, Amazon, or Venmo might receive a 1099-K.  You may also receive one if you earned income driving for Uber, Lift, or InstaCart or if you sell items on E-Bay or Etsy.

Read More here.