The tax deadline is April 15, 2019!
For residents of Maine and Massachusetts, they have until April 17 to file their 2018 tax return. Here’s some important information you need to know for filing by the tax deadline.
1. You need to report ALL of your income.
If you don’t report all of your taxable income; all income that is subject to withholding; you will need to amend your return using Form 1040X when the IRS gets a hold of your information.
Not only that, but you may even end up owing money back to the IRS.
2. You can file without a W-2.
Continue reading “6 Facts For Filing Taxes By the Tax Deadline”
Don’t let your 1099-K stand in the way of business.
If you’re an Uber driver, run an Etsy shop, or rent out your home to AirBNB frequenters, then you might notice a new tax form that has found it’s way into your mailbox in recent years.
It’s nothing to stress over. This is generally a straightforward form to review, and easy to report on your tax return.
What is a 1099-K?
Form 1099-K, otherwise known as Payment Card and Third Party Network Transactions, is one of the more recently introduced tax forms. It was created by the IRS in order to report income received from online electronic payments (e.g. credit cards, PayPal, debit cards, etc.) through third party processors. Prior to this form, many independent contractors who used online payment methods were left confused on how to report those sales on their tax returns.
Who gets a 1099-K?
Wondering if you’re one of the lucky ones who will get a 1099-K this year? The qualifications are somewhat more specific compared to other forms such as the W-2. With a 1099-K, it is based on sales volume.
Retailers who accept online credit card payments will receive a 1099-K from any business that processed their payments. However, the 1099-K is only mandatory if online processing meets the following stipulations:
- Sales volume is over $600 per year via credit card companies.
- Sales volume is over $20,000 and more than 200 individual transactions were made via third party processors.
Continue reading “The 5 Ws of a 1099-K”