You ain’t safe! Just because the 1099-K has been delayed doesn’t mean you won’t get one.

The 1099-K was delayed for 2023 but that doesn’t mean you won’t get one!

1/1/2023

Almost everybody dodged a bullet.

Because the IRS on 12/23/22 delayed people from getting a 1099K.

(It’s actually 1099-K, however SEO is better with 1099K or 1099 K)

What is the 1099K? A required tax form from 3rd party processors like Venmo, Cash App, eBay, Square, Etsy, Pay Pal etc. that reports all the money you were paid over $600 in 2022 to the IRS.

Trust had this happened it would have been not pretty. Because so many people are hustlin’ usually by selling something…and they ain’t paying taxes.

Money from side hustles, babysitting, garage sales and just stuff people buy and sell was gonna be taxed unless you can prove the payment shouldn’t be!

I know its crazy! But it could be worse…

The IRS delayed Form 1099 K and there’s a lot of fluff out there so I always go to the source and you should too…The IRS.

The below video is the last email from the IRS regarding FAQs brutally read line by line with commentary.

The FAQ was recorded for public informaton only so I’m not trying to take any credit.

December 30, 2022 was the last email for the year from the IRS regarding the 1099 K in which they updated the frequently asked questions again.

Their delay caused me a delay with my new book The Ultimate 1099 Guide because I saw this coming almost two years ago.

Go get a free download or the cheat sheet I put together.

The physical guide would be best as you can check examples, see the filled in forms and even take a quiz about 1099s, and much more!

Anyway let me try to summarize how the 1099-K affects the individual and the self-employed person.

The below did not happen in 2023 regarding the 1099-K. It was delayed until 2024.

It still doesn’t mean you won’t get a 1099-K.

It also doesn’t mean you shouldn’t plan because the IRS has given you a year to do so!

So what should have happened starting in 2023 re: Form 1099-K?

INDIVIDUAL — Classified as a non business person. A hustler. There are basically four situations in regards to a 1099-K for individuals.

1. You received a payment → Payment goes through 3rd party (you pay a fee i.e. Paypal, Square, Cash App, etc.) → Money arrives in your bank account → 1099-K (If over $600)
2. You received a payment → eBay, Amazon, Etsy, Shopify, SoundCloud etc. (they take a fee) → Your money arrives in your bank account → 1099-K (If over $600)
3. You received a payment for your services→ Uber, Lyft, DoorDash etc. → Your money arrives in your bank account → 1099-K (If over $600 or could be any amount)
4. You received a payment → Payment goes through 3rd party (*Zelle no fees) → Your money arrives in your bank account → No 1099-K from *Zelle

*Zelle doesn’t give 1099-Ks but you still are not safe as Zelle is owned by a group of banks who might eventually give up your deposit information to the IRS.

SELF-EMPLOYED — There are basically four situations in regards to a 1099-K for Businesses.

1. You sell products or services → Merchant account (usually through your bank and you pay fees) → Your money arrives in your bank account → 1099-K (If over $600 or any amount really)
2. You sell products or services → Payment goes through 3rd party (you pay a fee i.e. Paypal, Square, Cash App, etc.) → Money arrives in your bank account → 1099-K (If over $600)
3. You sell products or services → eBay, Amazon, Etsy, Shopify, SoundCloud etc. (they take a fee) → Your money arrives in your bank account → 1099-K (If over $600)
4. You sell products or services → Payment goes through 3rd party (*Zelle no fees) → Your money arrives in your bank account → No 1099-K from *Zelle

*Zelle doesn’t give 1099-Ks but you still are not safe as Zelle is owned by a group of banks who might eventually give up your deposit information.

Business owners of all types, even some Corporations will get a 1099 K from your merchant account or a third party processor like Square, Stripe, Venmo, Paypal, Cash App and others that you use to collect your money.

As of now, 2023 the 1099-K stays the same for the self-employed which is $20,000+ or 200 transactions (sales).

P.S. Go get a free download or the cheat sheet I put together.

The physical guide would be best as you can check examples, see the filled in forms and even take a quiz about 1099s, plus much more.

Thank you for reading!

-Steph