06k – Form 1099-K – Payment Card & Third-Party Network Transactions:-

📘 Form 1099-K – Payment Card & Third-Party Network Transactions:-

🔹 Purpose
Reports payments you received through credit/debit cards or third-party payment networks (e.g., PayPal, Venmo, Square, Stripe, Amazon).

🔹 When You Receive It
*If you have over $600 in payments (as per IRS rules, effective from 2023 tax year; phased-in in some cases).
*Applies to freelancers, gig workers, small business owners, and online sellers.

🔹 Key Information on the Form
*Gross amount of payments received
*By month (breakdown of total transactions)
*Payment network details
*Federal/state tax withholding (if any)

📅 Deadlines
*Sent to taxpayers: By January 31
*Filed with IRS: By February 28 (paper) / March 31 (e-file)

💡 Example:
If you sold handmade crafts on Etsy and received $1,200 via PayPal, you’ll get a Form 1099-K.

✅ Tip:
Keep detailed business expense records (supplies, shipping, fees). The IRS taxes net income (profit), not total payments shown on Form 1099-K.