If you received business payments via apps such as PayPal or Venmo or e-commerce companies such as eBay , Etsy or Poshmark in 2023, your tax return may now be a little less complicated.
The IRS announced Tuesday that 2023 would be a "transition year" for a new tax reporting requirement affecting such payments.
Once in place, it will trigger Form 1099-K for just $600 in payments, even if that income stemmed from a single business transaction.
For 2023, the old limit of more than 200 transactions worth an aggregate above $20,000 will remain in place.
The agency said it also plans on updates for Form 1040, which is used by taxpayers to file individual income tax returns, and related schedules, to "make the reporting process easier."
Persons:
aren't, Danny Werfel
Organizations:
PayPal, eBay, IRS, Finance