Form 1099-K Reporting Changed

Merchant service providers, such as banks and other institutions that process credit cards and electronic payments must report transactions if they cross a threshold amount for the year on Form 1099-K, Payment Card and Third Party Network Transactions. The threshold for 2023 transactions in 2023 was supposed to be $600. Before this year, the threshold was $20,000 and 200 transactions. There’s been much confusion about the change in reporting, so the IRS has set 2023 as a transition year (the same thing that was done in 2022), meaning the $20,000/200 transaction threshold applies. And it will phase-in the $20,000/200 by setting a threshold of $5,000 for 2024 transactions. #IdeaoftheDay