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Shoutout to the PayPal 1099-K threshold change that caught me off guard
I've been doing small Fiverr gigs on the side for about 4 years now, mostly logo tweaks and basic graphic stuff for $50-$100 each. Last year I made around $2,800 total across 3 platforms, not enough to worry about taxes really. Then I got an email from PayPal saying they're sending me a 1099-K because of the new $600 threshold rule. I almost ignored it thinking no way that applies to me. But I sat down and actually added up every tiny payment from 2023 and sure enough it came to $2,150 just through PayPal. I had no idea that threshold dropped from $20,000 to $600. Ended up owing $340 in self-employment tax that I wasn't planning for. Has anyone else gotten surprised by this new rule?
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miaprice2mo ago
Whoa wait, the threshold dropped that much? I thought it was still 20k for side hustle stuff.
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