If you get paid electronically for a side hustle, small business or selling things online, you may need to pay taxes. Payment apps and online marketplaces might issue a Form 1099-K, informing you and the IRS of how much money you got for selling things or providing a service. If you make a profit through these activities, it’s considered taxable income. You can use the Form 1099-K, along with other records, to determine how much tax you owe. Remember that all income, no matter the amount, is taxable unless the law says otherwise – even if you don’t get a Form 1099-K. If you get money from someone as a gift, reimbursement or repayment of other personal expenses, that money is not taxable. When possible, note these transactions as personal on apps and websites. Good recordkeeping throughout the year will help you when it comes time to file your tax return. For more information – including what to do if you get a Form 1099-K in error or the information on your form is incorrect -- visit IRS.gov/1099k.
