yes has to be both, if it follows the previous years rules, thats what it has been. I repeat, you must passs BOTH!

i think is both

They pushed the 1099-k lower limits. The old rule still stands at $20,000 and 200 transactions. As for the 1099 NEC or Misc, they did not change this…it’s still $600. You will need to report you 1099 on your tax return.

The 1099-K, which is different than the 1099-MISC and 1099-NEC, limit for 2023 is $20,000. Correct, they decided to delay the $600 minimum for future years.

There is a bill in Congress right now that would change the rule to $1,000...we'll wait to see if it passes.

Good question - yes, its $20,000 from over 200 transactions. Thank you watching the video.

Yes, you need to report it on your tax return. The IRS has received the same copy of that 1099K.

@@rob_cpa Thank you!!

Good question. You still report income, it’s just you will not receive one of these tax forms and the IRS will not receive a copy as well.

Good question. Since you are paying them through a merchant processor, its up to the processor to mange the 1099 filings. To be safe, you can always sent a 1099 to the contractor, but its not required since PayPal will manage it. If you do send one, then use Track1099.com - its easy and cheap.

Here is Ebay - its $20,000 and 200 transactions before they send 1099Ks. www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

Good point...usually does...but I think they realized how much paperwork and confusion it was going to be before year-end.

Based on Uber's website, it states that drivers will recieve a 1099-K if they are paid over $20,000 and 200 transactions. This is based on the new IRS rules - please see my new video: kzfaq.info/get/bejne/n9SjidKWxMe4nYE.html - in short, the IRS went back to the old rules for 2023.

Everyone else like DoorDash, Amazon flex for example that receives a 1099-NEC does not change?

$5,000 is the minimum for 2024. In 2023, the limit is $20,000

@@rob_cpa may i ask does this also apply to doordash?

It only applies to business income(i.e., Self-Employed income). As long as you DON'T mark it as a business transaction(I.e., Goods and Services on PayPal or Venmo), you're fine. I don't think Zelle even offers business payments. Now, if the transactions were truly business income, you would need to report them, even if no 1099-K/1099-NEC was issued, but at that point, it's a moral decision for you to make and if you are willing to take the risks. The whole point of this reporting requirement is to catch Sole Perpetrators who are not reporting their business income and not paying income and SE Taxes. With all that said, and the reason the IRS is postponing the 1099-K requirements is because of people making mistakes, mislabeling transactions that were truly personal payments as business income, or furnishing errors by payment processors. I'm all for this reporting requirements, but I see the issues that will need to be ironed out first before full implementation. Edit: Zelle does offer some small business services, but they are not subject to the reporting requirements. They do not report transactions on 1099-K, according to their FAQ, even if it was a business transaction. They are not subject to these reporting requirements.

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Yes it does. Keep in mind, if you are sending money to family and friends as reimburesements, these tend not to be taxable.

Would this be different depending on the state you live in? I live in Iowa and have sold items on eBay. I’ve sold more than 200 items but less than the $20k required