What is Form 1099-K?
You should be getting your tax forms in the mail if you haven’t already. The deadline for most forms we’re used to is January 31 so there could be some stragglers but I’ve also heard that some people already had their forms last week. One form you may not recognize is the new Form 1099-K. If you accept credit cards or do a lot of business via a company like paypal, the Form 1099-K may be in your future.
In the IRS’s ongoing effort to have everyone else do their job for them, merchant services and third party payment processors are required to issue Form 1099-K to those they service. If you accept any amount via credit card or use a third party payment processor like Paypal (and you have more then $20,000 in revenue and there are more then 200 transactions), then you should be receiving your forms soon. Both the Schedule C and Schedule E have been changed to accommodate these new forms so be sure if you’re doing your return yourself, that you put everything on the right line. For more information, here’s what the IRS has to say about the new form.