Thank you to CO–U.S. Chamber of Commerce for providing the content on What Is a 1099-K Tax Form?
As the small business tax filing deadline approaches, double-check that all of your forms are complete and accurate. Here’s what you need to know about Form 1099-K by April 18 (and beyond!) to conclude your tax season seamlessly.
More small businesses will be receiving Forms 1099-K for tax year 2022. Here’s what SMB owners should know about the form.
By: Sammi Caramela, Contributor
Effective Jan. 1, 2022, all third-party network companies (e.g., Venmo, Amazon, PayPal, Square, etc.) are required to issue 1099-Ks to merchants when card payments to the merchant exceed $600. Since the minimum sales threshold has been reduced from $20,000 to $600, more small businesses will be receiving Forms 1099-K going forward. As a result, many SMB owners might find themselves confused about what to do with the information and how to use it on their tax returns next year.
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