I need help, this is my first year offering services and being paid through Rover. I didn't make more than $20,000 or receive 200 payments so according to Rover and Stripe I will not be receiving a 1099k. That seems wrong though, there must be something I need that has kept track of my payment and needing to be reported to IRS. What do I do?
Update:: I just noticed you are in Illinois, the same as me. Under Illinois law, you must report anything over $600 earned. That went into effect for the 2021 tax year, and online payers like Paypal, eBay and others had to report earnings at those lower levels to the government. It will all be uniform across the country for TY 2023.
Since you're close to Champaign-Urbana, you might want to take advantage of the tax payer assistance program run by the U of I.
https://giesbusiness.illinois.edu/accou…
You are an independent contractor. No one really has to issue you any kind of piece of paper to document your earnings. You can find that info here on the Rover website.
However, you also have to learn about the other side of the equation: the deductible expenses allowed for your small business on Schedule C.
So you can go two ways. Talk to tax professional or read about from the booklet accompanying Schedule C and various other IRS publications for small businesses. Walt posted a very comprehensive list of deductible expenses just a few weeks ago. Look for it.
As for those earnings numbers ($20,000 or 200 transactions), they are being throw out. The law changed last year and now the earnings threshold subject to reporting will be $600. However, it is my understanding it has been deferred to the 2023 tax year and not 2022 as originally legislated.
Just keep track of your own earnings and expenses. That's what an independent contractor does.
Call the IRS if you feel what Rover told you was wrong. The IRS will help you more than any of us here.
NOTE: On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions.
you can check out this link too https://www.irs.gov/businesses/understa…
You can see in your Rover how much you made last year. There's a total amount listed.