1099k

brownie58 · ‎August 31, 2022

Our son is living with us right now. He sends us Apple Pay each month to help with his part of the expenses for groceries and utilities. It will be well over the $600. Will we receive the 1099k? If so do we need to do anything special to offset this on our 2022 taxes? Or should he be making special notations when he sends the transfer? Also, our daughter helped out a friend & her daughter by letting them live with her and they really did a number on her house. We paid to have it painted and re-floored and she’s paying us back through Apple Pay. I’m assuming we’ll get a 1099k on that as well? Is there anything we need to be doing to prepare for the 1099k?

KochuK · ‎August 31, 2022

Hi brownie58, thanks for posting the questions.

Please refer to below link, the section "Exclusion of personal payments clarified".

https://www.journalofaccountancy.com/issues/2022/jun/changes-form-1099-k.html

Your two scenarios fall into the "reimbursement, non commercial transactions", there should be no 1099-Ks issued. However, if the payors can note "personal" when transferring funds, that should be helpful.

TAS Tax Tip: Use caution when paying or receiving payments from friends or family members using cash payment apps

https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-use-caution-when-paying-or-receiving-payments-...

Hope the above helps.

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1099k

Self employed