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Did You Receivea 1099- K Make Sure You Dont Make This Costly Mistake

  Copy link into your clipboard //business-finance.news-articles.net/content/202 .. make-sure-you-dont-make-this-costly-mistake.html
  Print publication without navigation Published in Business and Finance on by CNET
          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
  Because of the way IRS computer systems are configured, the IRS computers will not detect an over-reporting of income and send you a refund for the difference. If you report too much income, the IRS simply assumes that you were paid for some work in some other way, such as by cash or check, rather than an electronic payment processor.

The article from CNET discusses the implications of receiving a Form 1099-K, which is used to report income from payment card and third-party network transactions. It highlights a common and costly mistake made by taxpayers: assuming that the amount reported on the 1099-K represents their total taxable income. Instead, the article explains that the 1099-K might include transactions that are not taxable, such as reimbursements or transfers between personal accounts. It advises taxpayers to carefully review their transactions, subtract any non-taxable amounts, and only report the actual income on their tax returns. The piece also notes changes in the reporting thresholds for 1099-K forms, which could lead to more people receiving this form, and emphasizes the importance of understanding what constitutes taxable income to avoid overpaying taxes or facing penalties for under-reporting.

Read the Full CNET Article at:
[ https://www.cnet.com/personal-finance/taxes/did-you-receive-a-1099-k-make-sure-you-dont-make-this-costly-mistake/ ]