Form 1099-K: what is this document and what is its function in the tax return

Have you heard of Form 1099-K? Filing a tax return has become a very common task among millions of people. In USAFor example, those who receive gross payments greater than 20,000 dollars must have and submit the aforementioned form. Therefore, here we tell you the details you need to know.

Even though he 2022 He left, in the aforementioned country it has been considered a transition year for the new rule that, according to La Opinión, lowers the amount of declaration and is now 600 dollars.

As a way of helping citizens to resolve all kinds of doubts, the Internal Revenue Service (IRS, in English) developed and published a document where you can see frequently asked questions regarding Form 1099-K.

In this sense, here we tell you what it is and what is the function of the Form 1099-K of IRS.

WHAT IS FORM 1099-K?

The Form 1099-K is a very important document used for the purpose of reporting the income of the self-employed, as well as that of people who receive funds from third parties.

According to the Irs.gov portal, this is also used to improve voluntary tax compliance.

WHAT KIND OF INFORMATION APPEARS ON THE FORM 1099-K?

This document shows the gross amount of all payment transactions declared by a certain person. The aforementioned portal adds that a declarable payment transaction is defined as a payment card transaction or a transaction with a third-party network.

WHAT IS A REPORTABLE TRANSACTION?

This is one of the questions that many people ask themselves. However, the IRS reported that a reportable transaction is one made with a payment card or a transaction with a third-party network. Thus we have:

• Payment card transaction: Any transaction in which a card is accepted as payment.
• Third Party Network: When settled through a third party payment network, but only when the total number of transactions exceeds the minimum limits.