1099K

The IRS has drastically lowered the threshold for reporting income on a 1099K. The threshold is now $600. 


For example, if someone were to earn $600 from making jewelry through a digital platform to make some extra money, you will receive a 1099K.  However, when filing your tax return you will be able to deduct from that income any expenses associated with making the jewelry.  You will only pay taxes on the profit (Total earned minus expenses).


Don't forget to include the form with your tax package for preparing your return.