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$UncleSam Requests Money?

A lot of misinformation has been spreading about the new 1099 threshold for 2022. Yes, platforms like Paypal, CashApp and Venmo will now be required to file a 1099-K for users who have more than $600 in transactions but that does not mean your taxes will increase. If the transactions coming into your account are not considered business income then you will owe no additional taxes. If it is business income, then you will need to pay taxes on this amount as you have in every year before 2022. Nothing changes but how these apps are reporting to the IRS. Previously, only accounts that had over $20,000 in transactions were issued a 1099-K. This new reporting process could only negatively affect business owners or self-employed individuals who were previously committing tax fraud by not reporting income. Everyone else is in the clear! So don’t be afraid to use your payment apps for personal transactions! Your buddy sending you $20 for the dinner you paid for is not taxable income! If you are a small business owner who is afraid of your potential 2022 tax bill, please reach out on our website or socials and we can help you set up a plan to find as many deductions as possible!

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