1099K

herky5
herky5 Member Posts: 3 Newcomer
edited January 15 in General

This does not apply to me this year, however I am wondering what the process is for the new requirements that if you use a reseller site / receive over $600 that you have to receive a 1099K for reporting on taxes. I know they have changed the rules recently to keep the limit higher for this year and next—but it is planned for upcoming years. I am wondering what the process looks like when you are filing taxes, and if it is fairly easy on the free tax usa platform? Also wondering what this looks like if your state already has the low threshold.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 340

    Hi Herky5,

    The good news is the IRS has postponed the tighter requirement for a 1099-K. Form 1099-K shows electronic payments you received from a third-party network such as credit cards, debit cards, Venmo, PayPal, and so forth.

    If/When you get a 1099-K report your gross receipts on your Schedule C or Schedule E on the "Other Business Income NOT Reported on a 1099-MISC or NEC" page. It is fairly simple and FreeTaxUSA can always help you when you get to that point in filing your taxes.

    Find more information here in the forum:

    https://community.freetaxusa.com/discussion/73/what-is-happening-with-the-1099-k

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