• New Reporting Threshold: The IRS has set a new threshold for 2023. If your earnings reach or exceed $600 across any number of transactions by tax filing time, you will receive a 1099. It is crucial to accurately track your GP earnings, regardless of the amount.

Recent IRS Update: Reporting Guidelines

Despite ongoing discussions about potential changes to reporting, the IRS has maintained the reporting threshold at $20,000 for 2023. Any proposed reduction to $600 has been deferred until the 2024 tax year. Staying informed is paramount for effective GP tax management.

Understanding GP Taxes

Before delving into specifics, it's essential to grasp the concept of GP taxes. As an individual earning income through GP, you bear tax responsibilities related to the income you generate.

Who Needs to Pay GP Taxes?

Individuals earning income through GP are responsible for GP taxes. The new $600 earnings threshold underscores the need for accurate tracking for tax reporting.

How Will GP Deliver Your 1099s?

Upon reaching the $600 earnings threshold on GP, the platform will issue a 1099 form. Typically, these forms are sent electronically through your GP account. Ensure your contact and tax information are up-to-date for prompt receipt.

Which Tax Forms Are Necessary?

• 1099: Outlines your gross revenue from GP transactions.
• 1099-MISC: Additional income, such as bonuses, may be reported on this form.
• Schedule C: If you operate as an independent contractor, filing Schedule C is essential for reporting self-employment income and deductions.

How Can You Minimize GP Taxes?

• Deductions: Identify eligible business expenses related to your GP activities, such as website maintenance or subscription costs. This helps reduce your taxable income.
• Quarterly Payments: For substantial GP revenue, consider making anticipated tax payments quarterly to avoid penalties at year-end.
• Education Expenses: If you incur costs for improving your skills, explore potential deductions to minimize your overall tax obligation.

What Write-Offs Can You Claim for GP?

• Website Costs: Deduct expenses related to maintaining and promoting your GP profile, including hosting fees and domain costs.
• Subscription Fees: If you pay for premium features or services on GP, these costs may be eligible for deduction.
• Equipment Expenses: Deduct the cost of equipment or software necessary for your work on GP.

When Do You File Your GP Taxes?

• January 31: GP typically sends 1099 forms by this date. Ensure your contact information on your GP account is accurate for swift receipt.
• April 15: File all necessary tax forms by this date to meet IRS deadlines. Consider seeking professional assistance to ensure accurate filing.
• Quarterly Estimated Taxes: For individuals with substantial earnings through GP, consider making quarterly estimated tax payments to prevent a large tax bill at year-end.

FlyFin Support: Your Partner in Tax Season

• Stay Informed, Maximize Deductions, and Meet Deadlines: FlyFin ensures a smooth GP tax season in 2023. For personalized advice, consult a tax professional.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.