1099-K ➡️ The Problematic 3rd Party App Tax Form (Venmo, PayPal, eBay, etc)

Are you confused about the new 1099 K reporting threshold? This video breaks down the recent legislation changes and explains what you need to know about receiving a 1099-K. A 1099-K is a tax form used to report payments received through third-party payment networks and credit card transactions. This form is issued by payment settlement entities (PSEs), such as credit card companies and third-party network payment processors (e.g., PayPal, Square), to individuals and businesses that receive payments through these platforms.
Why did this happen?
American Rescue Plan Act of 2021
Who gets a 1099 form?
If you receive direct payments by credit or bank card for goods and/or services
What types of payment services?
Payment app
Online market community
Craft or maker marketplace
Auction site
Car sharing
Ticket exchange
Crowdfunding
Freelance marketplace
Also check out:
5 Examples of Book to Tax Differences ➡️ GAAP Accounting vs IRS Tax Accounting
• 5 Examples of GAAP and...
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