UPDATES TO ALERT – Regarding Tax Changes for 2023 Directed to Venmo and PayPal Users Originally Posted December 17, 2022

e-commerce tax changes

E-Commerce Platforms Impacted by Recent IRS Announcement

PUBLISHER’S NOTE: After publishing an article on this blog on December 17, 2022, the I.R.S. made a change as to the effective date for the “gig-tax” rule discussed. Please read the update below.

UPDATE: I.R.S. Makes Tax Changes for E-commerce Platforms, Pauses Requirement for 1099s

e-commerce tax changesOn December 23, 2022 the I.R.S. paused the requirement that e-commerce platforms such as PayPal, Venmo, Etsy and Airbnb send 1099s to any users who had gross income through the app of at least $600 in 2022.

Previously, e-commerce users received 1099s if they had gross income for the year of at least $20,000 or at least 200 transactions. As part of the American Rescue Act, in March of 2021 Congress changed the threshold to $600, to take effect in 2022. Now the I.R.S. had instituted a one year delay for the law to go into effect. According to the I.R.S., this delay is to help reduce confusion during the 2023 tax-filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.

Keep in mind that this delay does not affect what income is taxable, only how much information is reported by … Read More... “UPDATES TO ALERT – Regarding Tax Changes for 2023 Directed to Venmo and PayPal Users Originally Posted December 17, 2022”

ALERT: IRS Tax Changes for 2023 That Could Affect You Especially if You Use Venmo or PayPal

Alert Key Legal Update

PUBLISHER’S NOTE: After publishing this blog on December 17, 2022, the I.R.S. made a change as to the effective date for the “gig-tax” rule discussed. Please read the update here.

Highlights of the New Tax Law Changes for 2023

paypal estate taxWith 2023 fast approaching, it is time to look at changes to income tax rules and regulations for 2023 and how they may affect you.

As is usually the case, 2023 will bring annual inflation adjustments to many tax provisions. Some of the more notable ones are as follows: the standard deduction for married couples filing jointly rises to $27,700 from $25,900 and for single individuals, up to $13,850 from $12,950; the estate tax exclusion for decedent’s estates rises to $12,920,000 from $12,060,000; and the annual exclusion for gifts increases to $17,000 from $16,000 for 2022.

One of the more significant changes applies to those who earn income through payment apps such as Venmo and PayPal. Previously, payment apps were required to send 1099s to users if their gross income through the app exceeded $20,000 or they had at least 200 transactions within the calendar year.

Now the threshold for receiving 1099s from the app will be a user … Read More... “ALERT: IRS Tax Changes for 2023 That Could Affect You Especially if You Use Venmo or PayPal”