Understanding 1099-K

Form 1099-K reports payments received through cards or third-party networks. It's crucial for tracking online sales and digital transactions.

Reporting Thresholds

For 2023, the reporting threshold remains $20,000 and 200+ transactions for personal accounts. Be aware of potential future changes.

Selling at a Loss

Personal items sold at a loss aren't deductible. Report the sale but offset it to avoid overstating income.

Reporting Profits

Gains from selling personal items above their original cost are taxable. Use Form 8949 and Schedule D to report these profits accurately.

Common Mistakes to Avoid

Don't mix personal and business transactions. Report all income, regardless of thresholds. Understand the tax implications of your sales.

Need help navigating 1099-K and personal item sales? Contact Akron Income Tax Co. for expert guidance and stress-free tax filing!

2215 E. Waterloo Rd. Suite 113 Akron, Ohio 44312 (330)733-1040