BISMARCK, ND (KFYR) – The IRS has lowered an important income reporting threshold that could affect you if you use payment transfer apps for your small business.
Beginning in early 2023, the IRS has told taxpayers that the reporting threshold for transactional apps has been lowered by thousands. For small business owners, this is a bit of a shock.
Jasmine Tosseth-Smith, owner of African Nomad Catering and Studio, said: “I think it’s scary when you first hear the news, but I also think for a lot of people it’s really not going to change as much as they think. their taxes.” .
Initially, taxpayers seeking the new tax law will see the annual threshold lowered from $20,000 to just $600, and for many it can be challenging to find the details and what this means for them.
“Whenever the IRS proposes a change to the tax code or the tax code, it’s scary because there’s a lot of unknowns, how it works,” said David Wald, a financial advisor at Securian Financial Advisors in ND.
Reporting all your income can be tricky when you file your taxes at the beginning of the year, and the difficulty increases if you have more than one income, or a form of self-employment. But there are also plenty of people who are happy to help.
“I do recommend living with it, it doesn’t have to be a financial advisor, but even just an accountant,” Tosseth-Smith said.
Both Wald and Tosseth-Smith said the change in earnings reporting is forcing small businesses to stay ahead in reporting revenue, which they say could help propel them to further success.
“I don’t think people shouldn’t be chasing their dreams, I think you have to be smart about chasing them,” Tosseth-Smith said.
While changes to taxes and reporting income can seem daunting, a financial advisor is happy to show you exactly what this means for you and your business.
If you own a small business and need help with reporting and filing taxes, please contact Securian Financial Advisors at www.securiannd.com.
Copyright 2022 KFYR. all rights reserved.