This webinar will cover the latest updates for Form 1099-K including the change in the reporting threshold scheduled to begin for 2023 Forms filed in 2024.  It will discuss issuers, recipients, reportable transactions, and provide examples of how amounts should be reconciled and reported on recipient tax returns.

Form 1099-K is used to report certain payment transactions including payments by payment cards (credit, debit, or stored value cards) and payments in settlement of third-party network transactions or through third party settlement organizations. Such organizations, for example, include PayPal, Uber,  Venmo, E-Bay, Cash App  and Air B&B.

Form 1099-K reports the gross amount of all reportable transactions processed by a reporting entity, such as a payment card processor or third-party network. However, some third parties may also report non-reportable transactions, such as splitting the check for a non-business meal in a restaurant. This means both taxable and non-taxable amounts may be included in the 1099-K total. Some income may be double reported if customers file a 1099-NEC for the income reported on the 1099-K. In addition, the reported amount is not reduced for fees and other costs that are allowable deductions from gross income. Recipients will have to trace and document reported amounts and allowable subtractions and duplicate reports to avoid paying more tax than required.

This webinar will cover the latest updates for Form 1099-K including the change in the reporting threshold scheduled to begin for 2023 Forms filed in 2024.  It will discuss issuers, recipients, reportable transactions, and provide examples of how amounts should be reconciled and reported on recipient income tax returns.

The threshold for reporting transactions reportable on Form 1099-K to payees is scheduled to be reduced for third party settlement organizations from $20,000 and 200 transactions to $600 dollars. Many small businesses and non-business selling goods and services will be receiving these forms in 2024 that have not received them in prior years. In nearly all cases, gross amounts reported on Form 1099-K will not represent actual taxable income for the recipient. It is important for recipients and their tax professionals know how to reconcile and report amounts included on 1099-K to achieve a compliant tax return, avoid paying tax on nontaxable items and avoid unnecessary correspondence from the IRS.

After this webinar you will:

• Understand the purpose of Form 1099-K and what it reports.
• Know how to report amounts reported on Form 1099-K on the income tax return.
• Know what to do if non-taxable amounts are reported on Form 1099-K. 
• Know what to do if a payment is reported on more than one 1099. 
• Know which payments are not reportable on Form 1099-K.
• Learn how payment card reporting differs from third party settlement organization reporting.
• Understand that fees and certain other deductions are included in reported payments.
• What Accounts Payable needs to know about Form 1099-K.