1099-K for 2022 Tax Return

Starting January 1, 2022, the IRS has a new form, the 1099-K which you may receive if you accept more than $600 from payment processors like Zelle, Venmo, PayPal and others. The IRS wants to match your 1099-K to the income that you report on your 2022 tax return. The problem is you may be simply doing a convenience transaction for a roommate for example. Imagine that your roommate transfers half of their rent to you ($750) and you pay the full rent ($1,500) to the landlord. Did you really have $750 in income? According to the form 1099-K you do. If you do transactions like this, then you will be having to explain that you used that $750 to pay your roommates rent. Complications that you do not need.

A better way to do it is to have your roommate send $750 to the landlord and you send $750 to the landlord, then you do not have this phantom $750 in 1099-K income problem to deal with.

Here is a link to a 1099-K form with instructions.

https://www.irs.gov/forms-pubs/about-form-1099-k

Where Have I Been?

Working hard for clients everyday. Sometimes you have to step back and re-evaluate things that you are doing to see what makes sense and what does not. I was thinking about changing my blog site to match the look and feel of my company's website (marianfs.com), but after careful consideration, the time commitment in doing this would be too much. I would essentially have to code every blog post and with this Google Blogger site, I do not have to do that. Therefore, I have decided to stay with Google Blogger as my Blog site. I will post regularly in the future. Sorry for the missed time, but I suspect that you have been busy living your best life and not the least bit worried about my blog.

Thanks.

Rick M. Allison, CFP®