2023 1099-K Laws Change … Again
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Well, the 1099-K saga continues, my friend!
On November 21, 2023, The IRS yet again pulled an all-stop to keep the 1099-K laws the same as they have been with the plan to change the threshold to $5,000 for the 2024 tax year.
Let's break down what this means for photographers
2023 reporting reverts to 2022 guidelines
For 2023 and prior years, third-party payment processors are required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.
2024 Shift to NEW $5,000 Threshold
Looking ahead to tax year 2024, the IRS plans to implement a phased reporting threshold of $5,000. This means changes are on the horizon, providing a window of opportunity for businesses to adapt gradually.
The Upside To The Last Minute Changes
Rarely does anyone like a last-minute change, but we gain a few things in this scenario.
More Time To Prepare
With the $5,000 reporting threshold delay, you have another year to prepare for these changes. Use this time wisely to review your financial records, understand the implications, and make any necessary adjustments.
Phased Implementation
The phased implementation in 2024 means a gradual transition, allowing businesses to adapt to the new reporting threshold without being overwhelmed. This phased approach can be particularly beneficial for those who may have been concerned about the initial abrupt change.
1099-K Full Understanding
To fully understand the rest of this 1099-K saga, check out Decoding the 1099-K for Photographers - Everything in this blog is still relevant except the 2023 & 2024 thresholds.
How Bastian Accounting Can Help
If you're feeling a bit overwhelmed or uncertain about how these changes may affect your photography business, don't worry—Tiffany and the Bastian Accounting team are here to help!
Our services extend beyond traditional accounting; we're your partners in financial clarity, providing educational content and support tailored to your needs. Whether you’re new to entrepreneurship or a seasoned business owner, we've got your back. We're not just financial experts; we're a part of your team, dedicated to your success.
Wishing you financial tranquility and success on your photography journey!
