A Tax Expert's Warning: Don't Make This Costly Mistake if You Receive a 1099-K

This year, some gig workers, freelancers and small business owners received an unfamiliar IRS tax form: a 1099-K. If you're one of them, how you report this form on your tax return could accidentally trigger an overpayment to the IRS. You'll receive a 1099-K form if you use a third-party payment service, such as PayPal, Venmo or CashApp, to receive freelance income and you earned $5,000 or more via these platforms in 2024. The problem is that you might also receive other 1099s for this same income. As an IRS-enrolled agent and tax expert, I know that receiving two tax forms for the same income can make it easier to accidentally report your income twice. Here's what you should do if you receive a 1099-K to avoid this expensive mistake. Read more: Best Self-Employment Tax Software Why am I receiving a 1099-K? A 1099-K form is a relatively new IRS income tax form that freelancers and business owners who earned more than $5,000 through third-party payment platforms in 2024 may receive ... Read full article.