"Form 1099-K tracks payments you’ve received through a payment settlement entity, or PSE. That includes tracking payments made via:
- Credit cards
- Online payment services like PayPal
- And even freelancing platforms like Upwork that manage client payments for you.
Form 1099-K shows the value of the transactions the PSE has processed for you in the past year, as well as any expenses paid on your behalf by your clients.
The IRS requires each payment settlement entity to send you a Form 1099-K by January 31 to business and individuals that surpassed the threshold for the year. For tax years prior to 2022, the threshold is payments totaling at least $20,000 and at least 200 transactions. For tax years starting with 2022 and going forward the threshold is simply $600 in payments without any consideration to the number of transactions." https://turbotax.intuit.com/tax-tips/irs-tax-forms/form-1099-k-decoded-for-the-self-employed/L6xHSTX...
GIG income is generally considered self employment income. This can increase your income and impact your taxable portion of social security or cause a higher tax rate on other income from sources like retirement. It just depends on your total taxable income for the year.
This is a great resource when reporting gig income and expenses https://turbotax.intuit.com/tax-tips/self-employment-taxes/-what-is-a-schedule-c-irs-form/L7v0iDelI .
Your state may limit the amount that can be contributed to an ABLE account if you have higher income over $235,000. According to the IRS ABLE distributions aren't taxable unless the distribution exceeds a designated beneficiary's qualified disability expenses. https://www.irs.gov/pub/irs-pdf/p907.pdf
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
