Are you required to report payments received from third-party platforms exceeding $600 on Form 1099-K?

The IRS recently announced a delay for the reporting of form 1099-K payments from third-party platforms in the amount of $600 or more. This means you will no longer be required to report 2022 payment transactions exceeding $600 from third-party platforms this year, as enacted in the 2021 American Rescue Plan.  However, you are still responsible for reporting amounts exceeding $20,000 in payments from over 200 transactions, as it was before the 2021 American Rescue Plan.

 The delay is intended to make the transition easier for taxpayers to comply with income tax reporting. “A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction… The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday, or holiday gifts, or paying a family member or another for a household bill” (IRS). More information related to this topic will be issued by the IRS later in the year.  

Do you still need more information on this topic? Get in touch with us! Let us fix your tax problems! You can call/text/ WhatsApp us at (347) 720-2224 or email us your concerns and questions at contact@ztaxllc.com. Follow us on social media.