Parkside Advisors

Independent Investment Management

  • Our Firm
  • Our Services
    • Overview
    • Financial Planning
    • Investment Management
      • Overview
      • Core Investment Strategy
      • Sustainable Investing
      • Customized Portfolios
    • Tax Planning
  • Our Team
  • FAQs
  • Blog
  • Client Portal
  • Contact

Upcoming Changes to Tax Reporting Requirements for Payment Apps

December 22, 2021 by Parkside Advisors

The American Rescue Plan Act (ARPA) signed into law March 11, 2021, expands reporting requirements for third-party settlement companies such as PayPal, Venmo and Zelle.

This law will affect taxpayers receiving payments for goods and services totaling $600 or more through third-party settlement companies beginning January 1, 2022.  Taxpayers will receive a Form 1099-K reporting taxable income includable on their tax returns.  The previous annual requirement for a 1099-K was $20,000 or more in the value of transactions or 200 or more transactions.

It is likely that companies will issue Form 1099-K based on their User Agreements, which generally specify whether an account is used for commercial or personal transactions.

If you are using third-party settlement companies for both business and personal cash transfers, we recommend creating separate accounts to avoid commingling non-taxable receipts with business income.

You can read more about the new Form 1099-K requirements here.

Please contact us if you have any questions.

Tweet
Pin
Share
0 Shares

Filed Under: Tax Planning

About Parkside Advisors

NO INVESTMENT ADVICE
The material in this blog is for informational purposes only. You should not construe any such information or other content as legal, tax, investment, financial, or other advice. Nothing contained in our blog constitutes a solicitation, recommendation, endorsement, or offer by Parkside Advisors or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

All material in this presentation is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the presentation constitutes professional and/or financial advice to any specific firm client, nor does any information in this presentation constitute a comprehensive or complete statement of the matters discussed. Parkside Advisors does not become a fiduciary to any participant or other person or entity by virtue of any person’s use of or access to the presentation.

The content presented represents the interests and opinions of Parkside Advisors only. Blog content also may include material obtained from third party sources. We believe all content presented in the blog is reliable and current however we provide no guarantee of accuracy. You assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in the blog before making any decisions based on such information or other content. In exchange for using the blog, you agree not to hold Parkside Advisors, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through this site.

INVESTMENT RISKS
There are risks associated with investing. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Principal loss is possible. Some high risk funds may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

  • Important Notices | Client Relationship Summary | Part 2 Form ADV
  • Parkside Advisors 2040 Bancroft Way, Suite 300, Berkeley, CA 94704 | 510-883-1350
  • Copyright © 2023 Parkside Advisors
  • WordPress Website Development by HyperArts