The Philadelphia Eagles will play the Kansas City Chiefs on Sunday in the 57th Super Bowl. Football fans across the country will be traveling to the game, calculating fantasy football payouts, or betting on the outcome. But because of a little-known yet devastating tax provision in the American…
Portland, OR, USA - Jan 5, 2022: Payment apps like PayPal and Venmo are seen on an iPhone on top of Form 1099-k. Third-party payment apps now have to report transactions more than USD600 to the IRS.. Football fans across the country will be traveling to the game, calculating fantasy football payouts, or betting on the outcome.
Another example: If you and your friends go out for a post-Super Bowl party — because win or lose, there’s a lot to celebrate by being in Phoenix in February — and you put the bill on one card, and it adds up to $601, you’ll receive a 1099-K form next spring that will require you to report your ‘earnings’ — when the reality is you just went out with your friends. You didn’t earn $601 from a business deal; you were getting paid back the money you had already spent.
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