k-os
25th January 2012, 04:40 PM
Online sellers, we warned you about (http://consumerist.com/2010/06/high-volume-sellers-on-ebay-craigslist-can-look-forward-to-new-tax-form-for-2011.html) this in 2010. The Internal Revenue Service created the new 1099-K form as a way to keep closer tabs on those who sell items online, and the 2011 tax year is the first in which the form will apply.
http://static1.consumerist.com/2012/01/23/k.jpg (http://cashmoneylife.com/1099-k-form-reporting-requirements/)
Cash Money Life (http://cashmoneylife.com/1099-k-form-reporting-requirements/) gives you the rundown on the form, which Amazon, PayPal and other services that deal with financial transactions will issue to customers.
You'll only receive a 1099-K if you've participated in 200 transactions adding up to $20,000. It's the IRS's helpful way of reminding you to report income you might have otherwise overlooked. If you don't receive a 1099-K because sell less frequently, you'll still have to report your income.
http://consumerist.com/2012/01/online-vendors-meet-the-1099-k.html
http://static1.consumerist.com/2012/01/23/k.jpg (http://cashmoneylife.com/1099-k-form-reporting-requirements/)
Cash Money Life (http://cashmoneylife.com/1099-k-form-reporting-requirements/) gives you the rundown on the form, which Amazon, PayPal and other services that deal with financial transactions will issue to customers.
You'll only receive a 1099-K if you've participated in 200 transactions adding up to $20,000. It's the IRS's helpful way of reminding you to report income you might have otherwise overlooked. If you don't receive a 1099-K because sell less frequently, you'll still have to report your income.
http://consumerist.com/2012/01/online-vendors-meet-the-1099-k.html