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Abercrombie Accounting

8000 Norman Center Drive, Suite 115

Bloomington, MN 55437

 

Phone: 952-835-6065

 

Email: daniel@abercrombieinc.com

Website: abercrombieinc.com

November 2022

Form 1099-K Gets An Overhaul

Short-Bits

If you received more than $600 from various online payment processors, you'll receive the updated Form 1099-K, Payment Card and Third-Party Network Transactions.


WHAT'S CHANGED?
Previously, when a company collected debit and credit card payments from customers, the card processor issued Form 1099-K that showed the gross amount of cash it provided to the business.


Now, more Americans will receive Form 1099-K. Beginning in tax year 2022, individuals, partnerships, LLCs, and corporations that earn more than $600 annually from third-party settlement organizations (e.g., PayPal) or electronic payment facilitators (e.g., Shopify or Xero which helps companies invoice and collect from customers) will receive a Form 1099-K.


WHO'S IMPACTED?
Some examples of who may be impacted by these changes if they meet the $600 reporting threshold include:
  • Homeowners renting out their homes on marketplaces like Airbnb

  • Delivery drivers working for food delivery apps like Uber Eats or Grubhub

  • Gig freelance workers offering their services on sites like Upwork

  • Online retailers selling goods on platforms like eBay or Etsy


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