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What are the tax implications of Cash Account?
What are the tax implications of Cash Account?

For US taxpayers, 1099 Tax Forms will be issued for 2022.

Written by Julie Solt
Updated over a week ago

Important Tax Update as of 2/1/24:
The IRS has announced a delay in the new $600 reporting threshold for Form 1099-K. This means that for the 2023 tax year, the reporting threshold will remain at the previous level of over $20,000 in gross payments and more than 200 transactions. As a result, if you receive more than $20,000 through payment processors like PayPal and have more than 200 transactions in 2023, you'll be issued a Form 1099-K.

Does this affect my tax obligations?
The updated threshold for the tax year 2023 does not change your obligation to report income. Only the criteria for receiving Form 1099-K have been adjusted. Please note that for the tax year 2024, the IRS intends to implement a new threshold of $5,000.

How are my earnings calculated?
The calculation of earnings for Form 1099-K issuance remains focused on gross sales proceeds. Store Credits, Deposits, or Withdrawals do not contribute to this threshold. What counts is the total of your sales proceeds from January 1 through December 31.

Next Steps:
Quidd will continue to provide the necessary support and update its system to enable users to submit their information securely for the 2024 tax year. We will communicate any required actions on your part, such as providing a mailing address, through our platform.

For Previous Tax Years:
No action is needed for the 2021 tax year, as Quidd will not be issuing 1099 Tax Forms for that period.

Advice for Non-U.S. Sellers:
โ€‹Non-U.S. collectors with significant sales proceeds should seek professional tax advice to understand their tax responsibilities in their respective countries.

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