IRS cracks down on business owners who use cash apps

In a recent effort to collect taxes from business owners, the IRS cracks down on business owners who use cash apps such as Cash App, Venmo, and Square Cash. The agency is arguing that these services should be treated as taxable income because they are used to receive payments for goods and services. Businesses that have been targeted by the IRS have been sent letters asking them to provide documentation proving that the money received through their cash app was not for income earned from their business. Read on to find out more about why the IRS cracks down on …

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What Is a 1099-R? Tax Forms for Annuities & Pensions?

If you have ever had an employee annuity plan or a pension plan, you probably have heard of 1099-R. What is a 1099-R? The 1099-R is the form used to report the receipt of retirement plan distributions. But be careful, this form can also be used to report annuities and pensions. The 1099 R tax form isn’t used for all pensions and annuities, but it can be used for pensions, annuities, or both. Table of Contents What is a 1099 R Form? What is an annuity? What is a pension? How to fill out the 1099 R Tax Form? Annuities …

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Got Contractors? Get Form 1099-NEC

As a small business owner, you’re probably familiar with the 1099 series of tax forms. If you’ve hired any independent contractors during the previous year, you’ll need to issue them Form 1099 Misc to report their earnings to the IRS. But what about workers who are non-employees? That’s where Form 1099 NEC Tax comes in. Table of Contents What do I report on form 1099 Non-Employee Compensation? Here are some 1099 NEC examples of payments Are there any exceptions for filing a 1099 NEC Form? What should I do if I receive a Form 1099 Non-Employee Compensation? This form is …

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Form 1099 Online – Tax Tips For Content Creators

The IRS has started the crackdown on content creators, auditing them and making them fill out tax forms. However, in the absence of their own form, they have come up with a form 1099-MISC, which they will give to those people or businesses. Here are some tax tips for content creators to help you with filling out your income tax return forms. Table of Contents What tax forms do content creators receive? Do influencers have to pay taxes on their gifts? Do content creators have to report taxable income? What tax forms do content creators receive? Most people know about …

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Do you want to Earn a side 1099 Income? Check out this New 1099 K Tax Rule

The new 1099 k tax rules have a lot of people wondering how it will impact their taxes. One of the questions on a lot of people’s minds is whether they can now earn a side 1099 income without being taxed at an absurdly high rate. The answer is, unfortunately, not quite yet. Table of Contents All About IRS Form 1099 K The new tax rule for 1099 K income What are the benefits of earning a 1099 income? How to get started with earning a 1099 income? The new Form 1099 K rules state that “report the third-party network …

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How Business-Related Gains are Taxed?

While some businesses may not have to pay taxes on their profits, understanding the tax treatment of any gains that might arise from a sale of an asset is still essential. Even if you are up to date with your tax accounting, you still need to know what to expect when there is a change in the tax rates or how business-related gains are taxed. Table of Contents Basic understanding of business-related ordinary gains’ tax treatment Are all gains considered to be taxable? Why Should You Care About the Tax Treatment of Business-Related Ordinary Gains? This blog post will look …

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Learn about the Requirements E-file 1099 K in your State

When you submit a 1099 form from the tax form view on the dashboard, the Form 1099 E-file provider submits the form to all states participating in the IRS and the Federal / State Combined Filing (CFSF) program. For states that are not part of the CFSF program or need to be submitted directly to a state, we will provide you with the reports you need to submit to any state. E-File 1099 K. Table of Contents Steps to Prepare to e-file 1099 K with the states Choose the 1099 tax form from the e-filing Dashboard Identify the state in …

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Why Did I Receive Form 1099 Div Instead Of Form 1099 Int This Year?

If you are planning to sell your stocks and bonds for a capital gain this year, you might be wondering why you received a Form 1099-DIV instead of the Form 1099-INT form you received the previous year. Form 1099-DIV is the form you receive if you received dividends in your bank account and not interest income. You should receive Form 1099-DIV if you had $10 or more of taxable dividends in your account at any point during the year. While most taxpayers will be receiving a Form 1099-INT this tax season, some taxpayers may receive a Form 1099-DIV instead. Here …

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IRS 1099 Tax Form: Most Common Misconceptions

The IRS 1099 tax form Online can be a confusing concept for small business owners and freelancers. Many small business owners are afraid of not meeting the tax filing requirements. The 1099 tax form is also often overlooked in favor of the W2 tax form. This blog will illustrate the common misconceptions around the 1099 tax form and how it works. Table of Contents #1: Issuing a 1099 Tax Form Online to Corporation #2: Skipping to report the 1099 Contractor Income #3: Sending 1099 tax Form Returns only to the recipient #4: Form 1099 Deadline doesn’t matter #1: Issuing a …

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Do you have to Send a 1099 Misc for Health Insurance Payments?

There are many different types of 1099 forms, and it can be confusing to determine which one you need to use. The 1099 misc form is used to report payments made to contractors for performing services during the course of business. If you make a payment for health insurance premiums, that would be considered a payment for services, and the recipient would be classified as an independent contractor. As a result, you would need to send them a 1099 misc form online. Before you start filling 1099 MISC, read on & find out Do you have to send 1099 misc …

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