new 1099k tax law

Forum|Forum|5 years ago
March 12, 2021
2 replies
29 views

Hi-

I have a question about the new gig bill that was just passed with the covid stimulus bill. The bill states that under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. Does this mean that anything sold on ebay or any other online platform will be reported for all 2021 transactions or does it mean that the new $600 threshold will take affect for 2022 transactions?

Best answer by DianeW777

Under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. The H.R.1319 - American Rescue Plan Act of 2021 - Section 9674.

The law and IRS guidance previously only required companies to send many workers these forms if the individuals earned more than $20,000 in income over more than 200 transactions, which is a high bar for the average person with a part-time side gig. The new law requires companies to send workers those forms if they earn more than $600, regardless of the number of transactions.

D

DianeW777Answer

Level 15

Under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. The H.R.1319 - American Rescue Plan Act of 2021 - Section 9674.

The law and IRS guidance previously only required companies to send many workers these forms if the individuals earned more than $20,000 in income over more than 200 transactions, which is a high bar for the average person with a part-time side gig. The new law requires companies to send workers those forms if they earn more than $600, regardless of the number of transactions.

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J

JaffeJoeAuthor

Level 2

Thank you for that clarification! Much appreciated.

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Stephen3031

Level 2

What to do if I have my 1099 form but already file

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ErnieS0

Level 15

It depends on whether you already reported your income @Stephen3031. Sometimes amounts on Form 1099-K are double reported on other tax forms, including Form 1099-NEC or you may have reported the amounts as credit card payments.

If you've reported all the income, you do not have to do anything.

If some or all of Form 1099-K is additional income, then you will have to amend your return. The TurboTax amend function will be available later this month.

Go to How to amend (change or correct) a return you already filed. If you do not see instructions for 2021, it means 2021 amend is not ready yet.

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