Under a new law, gig workers (such as rideshare drivers) and online sellers of goods must file Form 1099-K with the IRS if they earn at least $600 annually. A group of Democrats in Congress thinks that threshold is too low and may subject these taxpayers to “burdensome or confusing reporting requirements, which could result in overpayment as well as ineligibility for certain tax benefits.” Therefore, the group has introduced a bill that would raise the reporting threshold to $5,000, retroactive to Jan. 1, 2022. The proposed legislation would also mandate that Form 1099-K instructions help reduce taxpayer confusion by providing a plain-language description of taxable income. Call or visit our website for more information! www.mjscpa.com/
