The Form 1099-K is a form required to be issued to the IRS to track the money deposited to each recipient. Due to the change in rules for 2023, in regards to third party settlement organizations (TPSOs) (companies that handle and must account for the funds), it's going to be some time before we see the full impact.
As indicated by @JamesG1 record keeping will be an absolute must for 2023. The law has changed to reflect reporting when the amount exceeds $600 going forward.
- Understanding your 1099-K
- TPSOs are required to report payments for goods and services. The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member for a household bill.
It's not intended but will incorporate those payments. You must report the sale of personal items and sales of good and services.
NOTE: One personal item or a group of personal items sold in one transaction at a gain requires the gain to be taxed.
One personal item or a group of personal items in one transaction sold at a loss, the loss is suspended and not allowed to reduce or offset other income, even the gain on personal items sold in a different transaction.
@drewcrawford03
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