The IRS introduced on Dec. 23, 2022, that it could delay the $600 reporting threshold for Kind 1099-Okay that was set to enter impact in the course of the 2022 tax yr. As a substitute, these necessities have been pushed again one yr to permit taxpayers extra time to arrange for the change.

Kind 1099-Okay  is an informational tax doc detailing the gross funds for items and companies for all of your third-party cost platform transactions. Earlier than this announcement, third-party cost platforms (assume eBay, Etsy, PayPal, or Venmo) have been required to subject Kind 1099-Okay to all customers who had funds totaling $600 or extra in a calendar yr, with no transaction minimal.

As a substitute, this delay implies that the earlier reporting threshold of 200 separate transactions totaling a minimum of $20,000 in a calendar yr will stay in impact for the 2022 tax submitting season.

As a result of timing of this announcement, it’s doable corporations like eBay or Etsy may nonetheless select to subject a 1099-Okay for 2022, however it could be as much as every firm’s discretion. For those who had backup withholding withheld by a third-party cost platform, it’s best to nonetheless anticipate to obtain a Kind 1099-Okay.

Bear in mind, this delay solely modifications when corporations are required to subject Kind 1099-Okay. Even in the event you don’t obtain a 1099-Okay for 2022, you continue to have to report any taxable revenue in your tax return.

And in the event you do obtain Kind 1099-Okay this tax yr, don’t stress. TaxAct^® is right here that will help you precisely file the revenue reported in your Kind 1099-Okay.

You may learn the IRS’s official announcement on their web site.

All TaxAct provides, services and products are topic to relevant phrases and circumstances.