December 1, 2022 Avilla Area Chamber Team
If you sell online via your website, Etsy, eBay, etc., please take note.
The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year.
There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, income, including from part-time work, side jobs or the sale of goods, is still taxable.
Taxpayers must report all income on their tax return unless it is excluded by law, whether they receive a Form 1099-NEC, Non-employee Compensation; Form 1099-K; or any other information return.
The IRS emphasizes that money received through third-party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable.
If a Form 1099-K is incorrect and reflects income they didn’t earn, they should call the issuer. The IRS cannot correct it.
Visit frequently asked questions on IRS.gov for more information.