The New 1099-K $600 Rule Explained | Rob.CPA

In this video, I will walk through the new changes to the 1099-K form.
Starting January 1, 2022, those companies and people that received payments from payment card processors or had third-party network ( Paypal, Venmo, Zelle) transactions in excess of $600 will receive a 1099-K.

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The 1099-K is an informational tax form that is filed with the IRS, and a copy is given to the person
that received the $600+ of payments.

If you receive form 1099-K, you need to report this income on your tax return. The IRS is expecting to see this on your tax return.
If you/or your business received payments from Venmo, PayPal, Etsy, Airbnb, Uber, Lyft, Amazon, etc., greater than $600, you’ll get a 1099-K.
If you received payments from Zelle, you will not receive a 1099-K, but instead received a 1099-MISC or 1099-NEC if the payments were in excess of $600.

Here is an example of a 1099-K form:
[Form 1099-K (Rev. January 2022) (irs.gov)](https://www.irs.gov/pub/irs-pdf/f1099k.pdf)

Finally, in the video, I mention the importance of NOT combining personal with business bank accounts. The 1099-K is a perfect example of why not. If your customers paid you $10,000 via Venmo to your business bank account and your friend paid you $1,000 via Venmo to your bank account, the 1099-K would show $11,000. Technically, $10,000 is revenue, but the IRS will be looking for the $11,000 to be reported.
Paypal 1099 K
Venmo 1099 K

About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.

The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.

I will be covering the following topics:

- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship

New videos are released every week, so be certain to SUBSCRIBE! : shorturl.at/fL014


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