{"id":1298,"date":"2025-04-19T01:57:17","date_gmt":"2025-04-19T01:57:17","guid":{"rendered":"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/?post_type=newsletter&#038;p=1298"},"modified":"2025-04-19T01:57:17","modified_gmt":"2025-04-19T01:57:17","slug":"the-irs-wants-more-info-about-your-gig-income","status":"publish","type":"newsletter","link":"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/newsletter\/the-irs-wants-more-info-about-your-gig-income\/","title":{"rendered":"The IRS Wants More Info About Your Gig Income"},"content":{"rendered":"<p>This change was delayed for the 2023 tax year because it could trigger frustrating unintended consequences. For example, an estimated 44 million taxpayers might have received unexpected 1099-K forms \u2014 with amounts that may not have been taxable. To provide more lead time, the IRS announced plans to drop the threshold from $20,000 to $5,000 in 2024 (without regard to the total number of transactions) as part of a phase-in of the $600 threshold.<\/p>\n<p>Here are a few more things that may be helpful to know about this far-reaching new rule.<\/p>\n<p><strong>It\u2019s not personal<\/strong>. Business transactions are payments for goods or services, including tips. Money received from the online sale of personal items (like old clothing or furniture), which are normally sold at a loss, is not taxable and generally doesn\u2019t need to be reported. However, those in the business of reselling goods for a profit should carefully track the original costs of their purchases. Payment apps are not required to report personal transactions intended as gifts or to split costs. The payer will typically be asked to note nonbusiness transactions.<\/p>\n<p><strong>It\u2019s not a tax change<\/strong>. Taxpayers who sell goods, rent out a vacation home, walk dogs, or perform any other type of freelance work through digital platforms were already responsible for self-reporting all income on their tax returns regardless of the threshold. But now the IRS will have a way to cross-reference the information sent by third parties with the reported amounts.<\/p>\n<hr \/>\n<h2>Examples of third-party settlement organizations:<\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-1300\" src=\"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/wp-content\/uploads\/2025\/04\/WA_24075_gig-income-CHART-2.jpg\" alt=\"\" width=\"700\" height=\"244\" srcset=\"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/wp-content\/uploads\/2025\/04\/WA_24075_gig-income-CHART-2.jpg 700w, https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/wp-content\/uploads\/2025\/04\/WA_24075_gig-income-CHART-2-300x105.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<hr \/>\n<p><strong>It\u2019s not foolproof<\/strong>. This change could still cause confusion and costly mistakes. If a payer (such as a roommate making a shared rent payment) accidently clicks on the wrong box, the recipient could receive a Form 1099-K in error. A freelancer might receive a Form 1099-K from the payment processor and a Form 1099-MISC from the client for the same transaction. In such cases, the taxpayer may need to contact the issuer, and if a discrepancy is not corrected, the reported amount can be adjusted with a notation on the tax return.<\/p>\n<p>Using separate accounts for business and personal digital transactions and keeping organized records will help ensure that your tax return is accurate, so you don\u2019t overpay or raise any red flags with the IRS. If you have questions about how the new rule might affect you, don\u2019t hesitate to consult a qualified tax professional.<\/p>\n<p>This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. \u00a9 2024 Broadridge Financial Solutions, Inc.<\/p>\n","protected":false},"featured_media":1299,"template":"","meta":{"_acf_changed":false},"newsletter-category":[28],"class_list":["post-1298","newsletter","type-newsletter","status-publish","has-post-thumbnail","hentry","newsletter-category-july"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The IRS Wants More Info About Your Gig Income - New England Trust<\/title>\n<meta name=\"description\" content=\"In Evanston, IL, Robard Flaremoor offers Financial Planning Services &amp; Financial Advice. \u2018Financial Services\u2019 from College Funding to Wealth Protection. \u2018Tax Services\u2019 include Tax Preparation, Tax Reduction, and Tax Management\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/newsletter\/the-irs-wants-more-info-about-your-gig-income\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The IRS Wants More Info About Your Gig Income - 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