1099-K Reminder for Tax Year 2022

You will most likely receive a 1099K for taxpayers who earned $600 or more selling goods or services. If you had more than 200 transactions exceeding $20,000. last year, you might have received a 1099K. This event will be triggered even if you only have one transaction exceeding $600. These 1099-K's are likely to come from Venmo, PayPal and Zelle.


There's no need to worry

You don't need to be concerned, income will continue to be taxed as before, and this change only affects Form 1099-K reporting requirements. It will be easier for taxpayers track the amount they receive, according to the IRS. This will also lower future audits.


Consider Making Estimated Payments

You are a 1099-K worker and should be aware of the tax obligations. These due dates for 2022 were 4/18/2022 to 6/15/2022, 9/15/2022 and 1/15/2023. Additional penalties may apply if you miss these deadlines and do not file an extension. Experts recommend that you save 25-30% of your income for taxes. This is because you not only pay income tax but also have to pay the self-employment tax which includes Medicare and Social Security.

For more information, please reach out to the Professionals at CPA Clinics for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.


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