As we all know a new year can result in new tax rules and laws. That is no different for 2022. The new tax laws are specific to small businesses, freelances, gig workers, and others. Small business owners who prepare their own tax filings need to be especially alert and on top of changing tax laws. A small change was made in the American Rescue Plan Act of 2021.
Any business or freelancer receiving more than $600 in total during a year must report their earnings to the IRS. Although these earnings should be reported anyway. But as a small business owner sometimes these things can get overlooked.
With this new tax law, the IRS can now see all earnings acquired from these digital payment services of a third party. Small business owners with Etsy, eBay and Amazon shops will be affected. You can also learn more about personal gifts that will be excluded.
To find out if or how this may affect you or your small business click the button below to learn more.