IRS Delays 1099-K Rules! IRS just announced that they are delaying the new reporting requirements for form 1099 K uh they’re delaying that until tax year 2024 for 1099 K issued in 2025 this is kind of been a Side Story on my channel uh for a while now ever.

 since the American Rescue plan Act was passed to catch you up if you don’t know IRS Delays 1099-K Rules what I’m talking about the American Rescue plan act which was passed uh shortly after Joe Biden became president among other things it changed.

What is the threshold for 1099 K in Virginia?

The 1099 K reporting threshold to $600 1099 K is the form that payment processors issue to those it paid money to payment processes are things like venmo cash app PayPal things like that right so IRS Delays 1099-K Rules the current threshold is or the threshold before the American Rescueplan Act was before you got a 1099 K.

Reporting payments from these payment processors to to the IRS and IRS Delays 1099-K Rules to you uh you would have to have had uh more than 200 transactions during the year and at least $20,000 in payment volume during the year you had to meet both of those requirements American Rescue plan act said starting in tax year 2022.

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IRS $600 dollar rule 2023!IRS Delays 1099-K Rules?

We’re going to lower that threshold to $600 period if IRS Delays 1099-K Rules you had one transaction that was at least $600 then you’re going to get a 1099 K or if you had multiple transactions that’s summed up to $600 or more you’re getting a 1099 k.

I so 600 bucks that’s that’s the one and IRS Delays 1099-K Rules only threshold the American Rescue plan act said and they wanted to start that in tax year 2022 well.

The IRS punted that to tax year 2023 and that’s what we’ve been thinking this whole year that well this is going to be the year when it starts tax year 2023 for 1099 Cas issued in 2024 uh I made a video last week about the GAO report that came out that basically threw some shade at the IRS saying they’re not ready for this this is going to cause confusion to taxpayers well just this morning.

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Is Zelle a third party payment processor?

I think kind of in response to goo report just this morning two days before IRS Delays 1099-K Rules Thanksgiving uh the IRS announced that they are going to uh punt the issue now to tax year 2024 so for tax year 2023.

It’s the same old threshold you’re not going to get a 1099 K unless you had more than 200 transactions during the year from that payment processor in question and ran volume of at least 20,000 during the year through that payment processor okay um so a lot less 1099 Cas are going to be issued in in uh in January than we thought uh the IRS also said that in 2024 they’re going to look to make the threshold for tax year 2024.

$5,000 rather than $600 it seems that they eventually want to get it to $600 but in 2024 they’re going to you know they want to phase it in gradually IRS Delays 1099-K Rules so it’s not such a shock with such a huge change uh so they said they’re thinking.

Does PayPal send 1099?

This isn’t final but they’re thinking of making the the threshold $5,000 uh in 2024 and they’re thinking about making changes to the form 1040 the individual income tax return for tax year 2024 uh to IRS Delays 1099-K Ruleshelp with the reporting requirements here because like I said last week.

 what we’ve been saying all along these new because so many people use PayPal cash at venmo things like that for personal transactions they might still get a 1099 k for those if it wasn’t taded correctly by the sender uh or for other reasons.

What is the 1099?

I I think they’re going to make some changes to the tax return to make it easier for people to report uh you know transactions that are not taxable transactions that are like personal items sold at a loss uh things tha should not have been tagged as uh you know for a business purpose like a reimbursement right like your um you.

Know like your uh you split a bill at a restaurant right and you got reimbursed through PayPal that’s not that stuff’s not taxable right so it sounds like they’re going to make changes to the tax return for 2024 to help people report their 109k come properly anyway not my studio right now obviously but this this just came out this is like breaking news just this morning.