Did the American Rescue Plan of 2021 contain a provision to lower reporting requirements for 1099-k income to $600?
Yes, the American Rescue Plan of 2021 did contain a provision to lower reporting requirements for 1099-K income to $600. However, it has been delayed, at least until 2023.
“Under the law, beginning January 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceeds a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee an IRS Form 1099-K, Payment Card, and Third-Party Network Transactions.”
A 1099-K is a tax form used by payment settlement entities to report payment transactions to the IRS. It is typically used for businesses that accept payments through third-party payment processors, such as PayPal, Stripe, or Square.
If you have a “side hustle”, Etsy shop, drive for Door Dash, Uber, or own an Air BnB, come to Tax Titans, create your free, anonymous profile, and get qualified bids on your tax return preparation from vetted tax pros.
