IRS Updated 1099K reporting information

FYI

If you’re not making money from notary work, rather inspections (1099), when do you advise reporting. Quarterly? Who should I go? I work full-time and do inspections on the side. So I’m not making a lot of money from it. Any advise would be helpful.

There isn’t a ‘one size fits all’ answer to your question. Having full time work [assuming W2 reporting and withholdings], how much income you’re pulling in on both W2 and 1099 income, Tax differed savings [401k, 403B, 457, IRA, etc.], your State’s reporting requirements, did you owe the IRS last year and how much…

These variables start moving you into a more complex return that you should have a consultation with a Tax Professional. Remember you can deduct the professional fess as a business expense against your 1099 income. The professional fees deduction isn’t available if you have only W2 wages.

My suggestion is to have a chat with a Tax Professional about your specific situation. They’ll want to look at your last two years returns, at least I would, along side your current income numbers. Some States have credentialling requirements for Tax Pros and others don’t.

You don’t have to use a CPA, for most small business owners, an Enroller Agent, or AFSP credentialing is all that’s needed. CPAs tend to be more expensive.

2 Likes

I was last year and am now W2. But I started my LLC in December of 2022. But have yet to do any Notary work with exception of for friends for which I didn’t ask for compensation.

I am working a full-time job (W-2) and doing field inspections after work. But I’ve heard with 1099, you should handle it quarterly. I have never owed the IRS anything. I always got money back.

I will take your advise and speak with a tax expert. I don’t want to end up in a bind or end up owing. I have a lot of questions regarding write-offs, etc. too. Thank you for your help!

If you haven’t had any Notary engagements for 2022 you’ll should not receive any 1099-NECs. For your inspection business you “may” have to make quarterly reports/payments. When it comes to quarterly reporting, deductibles, credits, and other matters it’s best to have a chat with a Tax Pro. As a side note, I have a some clients who didn’t follow understand the details and were stung this year. It wasn’t too painful, as must as it was a surprise. The IRS is working with them to set up payment plans. Good luck, let me know privately how things worked out.