New reporting threshold for payment apps could impact small businesses
BISMARCK, N.D. (KFYR) - The IRS has lowered an important income reporting threshold, and if you use payment transfer apps for your small business, it may impact you.
Beginning in early 2023, the IRS has let taxpayers know the reporting threshold for transaction apps has been lowered by thousands. For small business owners, it comes as a bit of a shock.
“I think it’s scary when you first hear the news, but I do also think that for a lot of people it’s really not going to change their taxes in the way they think,” said Jasmine Tosseth-Smith, owner of African Nomad Catering and Studio.
Initially, taxpayers who look for the new tax law will see the threshold lowered from $20,000 to just $600 annually, and for many, finding the details and what that means for them can be challenging.
“Any time the IRS puts forth a change in the tax law or tax code it’s scary because there’s a lot of unknown, how does it work,” said David Wald, a financial advisor at Securian Financial Advisors of ND.
When filing taxes at the beginning of the year, reporting all incomes can get tricky, and if you have more than one, or a form of self-employment, the difficulty goes up. But there are many who are happy to help.
“I do suggest getting with, it doesn’t have to be a financial advisor, but even just an accountant,” said Tosseth-Smith
Both Wald and Tosseth-Smith say the changes in income reporting force small businesses to stay on top of reporting income, which they say may help push them into further success.
“I don’t think people should not chase their dreams, I think just be smart about chasing your dreams,” said Tosseth-Smith
While changes in taxes and reporting income can seem daunting, financial advisors are happy to show you what it means for you and your business specifically.
If you own a small business and need help reporting and filing taxes Securian Financial Advisors can be reached at www.securiannd.com.
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