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Question
I switched my personal account to my LLC, will I receive 2 1099-Ks?
AI accountant’s answer:
It depends on the payment processing companies that you used for your personal account and your LLC account. If both accounts were active during the tax year and exceeded the reporting threshold for the payment processing companies, then yes, you could receive two separate 1099-K forms – one for your personal account and one for your LLC account.
Starting from the tax year 2023, the reporting threshold for Form 1099-K has been lowered. Payment processors are now required to send a 1099-K if a taxpayer has more than $600 in gross payment transactions during the year, regardless of the number of transactions. Keep in mind that reporting thresholds and requirements may vary by state.
Make sure to report the income from both 1099-K forms on your tax return, attributing the income correctly to your personal account (Schedule C or another appropriate form) and your LLC account, depending on your LLC's tax structure. If you have any questions or concerns, it's always a good idea to consult a tax professional for guidance on your specific situation.
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