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Changes That May Affect You This Tax Season

What you Need to Know about Form 1099-K Sponsored by: TaxAct

SAN DIEGO — It seems every tax season brings with it some sort of change that impacts your filing. And this season is no different. TaxAct, a leading DIY tax software provider is on a mission to help all filers navigate changes and file returns with confidence and ease.

Having helped more than 90 million tax filers since 2000, TaxAct provides easy-to-use software that helps you get your maximum refund guaranteed. TaxAct’s VP of Tax Operations, Mark Jaeger, joins our Laura Cavanaugh to talk about this new tax landscape and one of the more confusing changes you should know about this season.

The change affects individuals who use e-commerce platforms like Venmo, PayPal and Cash App. The reporting threshold for Form 1099-K was scheduled to change, however the IRS delayed the new threshold until tax year 2023. Many of the third-party payment networks were already in the process of issuing Form 1099-K to qualified recipients. The IRS requires taxpayers to report all taxable income. Currently anyone who took in more than $600 in payments through a third-party payment provider in 2022 should be on the lookout for Form 1099-K.

Here are three quick tips.

  • Not all transactions are taxable income
  • Cost-splitting on things like dinner is not taxable. It only applies to the sale of goods and services
  • The IRS has always required all taxable income to be reported. Therefore it’s always best to accurately report your income and keep good records that substantiate that income.

TaxAct helps filers navigate changes with access to live tax experts. You can get started by going to www.taxact.com

Most individual tax returns are expected to be filed before the April 18 deadline. However Californians affected by recent winter storms may qualify for an extension to May 15 to file individual and business tax returns.

Sponsored by: TaxAct

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