Form 1099-K

[Christian]

A client came in with one of these but tells me using the reported amounts on the form have been waived for this year. I thought it best to post on this as I have yet to see anything on a waiver for forms received by taxpayers already.

[Lee B]

If your client received one, I assume it was for over $20,000? The amounts have not been waived. 

If your client reports income for less than than the amount reported on the 1099 K, at the very least it will trigger a CP 2000.

What was delayed for one year is the reporting of amounts greater than $600.

[Lion EA]

Reporting by the 3rd party processor, NOT by the recipient, is changing.

I keep seeing headlines about not having to report amounts under $600, but no mention of WHO is in the headline. The headlines seem to imply (clickbait) that the taxpayer will not have to report on his tax return. The taxpayer is, and always was, required to report worldwide income from all sources in all amounts on his tax return.

[Bart]

Previously, to receive a 1099-K from a third-party payment network, you had to exceed $20,000 in transactions for goods and services and have more than 200 business transactions in a year. So, for the 2022 tax year, that $20,000/200 transaction threshold applies.  After 2022, the limit drops to $600.  So many more people will get a 1099-K and the IRS will be looking for that tax payer to be reporting something.

It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K. You must report on your income tax return all income you receive.

[Sara EA]

One can either be angry or chuckle when a client tells YOU how to do a tax return.  Just this week a client told me the cost of her teaching certificate was deductible as an employee business expense.  I told her that went away in 2017, plus she isn't itemizing.  Then she told me again it was deductible.  She wanted to know what line a friend of hers should put her classroom expenses.  I told her but then she said that wasn't the same as she read on the internet.  I told her if she didn't trust me she could pick up her docs.  I went from chuckling to testy.

[Lee B]

1 hour ago, Sara EA said:

One can either be angry or chuckle when a client tells YOU how to do a tax return.  Just this week a client told me the cost of her teaching certificate was deductible as an employee business expense.  I told her that went away in 2017, plus she isn't itemizing.  Then she told me again it was deductible.  She wanted to know what line a friend of hers should put her classroom expenses.  I told her but then she said that wasn't the same as she read on the internet.  I told her if she didn't trust me she could pick up her docs.  I went from chuckling to testy.

Sounds like Turbo Tax Client

[Jim Oh Bkkr]

10 hours ago, Sara EA said:

told me again it was deductible.

Reminded me of a potential client years ago.  Demanded I give him the elderly/disabled credit (Sch R), because his old guy did it.  Two years of prior returns, both included -0- on Sch R, 1040 also reflected NO credit, but he insisted.  Good times!  (Didn't there use to be one of those emoji things showing "beating your head against the wall"?)