Today, Optima Tax Relief Lead Tax Attorney, Phil, sheds light on the top things on his 2025 tax radar. Here’s what to watch out for this tax filing season.
Form 1099-K
Taxpayers should keep an eye out for Form 1099-K this year, especially if they received payments through third-party platforms like Venmo, PayPal, or Stripe. You’ll also receive this form if you sell on sites like eBay or Etsy. This form reports business income from transactions processed by these platforms and others. While the IRS delayed the $600 reporting threshold until 2026, the 2024 threshold is set at $5,000, meaning taxpayers with total payments exceeding that amount should receive a 1099-K. If you get one, verify its accuracy and use it to report income on your tax return. Remember, even if you don’t receive a form, you’re still responsible for reporting all taxable income.
IP PINs
An Identity Protection PIN (IP PIN) is a six-digit number issued by the IRS to help protect taxpayers from tax-related identity theft. It prevents fraudsters from filing a return in your name by requiring the IP PIN to validate your identity. If you’ve been a victim of identity theft or opt into the program voluntarily, the IRS will issue a new IP PIN each year. This means you’ll have to secure a new IP PIN each year in order to e-file your tax return. Once assigned, you must use it when filing your return to avoid delays or rejection.
Natural Disaster Tax Relief
Taxpayers affected by natural disasters may qualify for IRS tax relief, including extended filing deadlines and penalty waivers. Recent hurricanes on the East Coast and wildfires in Southern California have prompted relief measures, allowing affected individuals and businesses extra time to file returns and make payments. The IRS typically identifies eligible areas and offers automatic relief, but taxpayers should verify their status. If records were lost or income was impacted, additional assistance may be available. For details on specific disasters and available relief, visit the IRS disaster relief page.
Tune in next week as Phil discusses natural disaster tax relief.
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