The landscape of earning through Wag is continually evolving, impacting how individuals handle taxes. Staying updated with the latest IRS updates can help you to navigate the tax season effectively.

Recent IRS update: 1099 reporting guidelines

Despite ongoing discussions about potential changes to 1099-K 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 to avoid further confusion this tax year.

Understanding Wag taxes

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

Who needs to pay Wag taxes?

Individuals earning income through Wag are responsible for paying Wag taxes. Since you’ll need to report income earned through Wag to the IRS, it’s best to keep accurate records.

How will Wag deliver your 1099s?

Typically, Wag forms are sent electronically through your Wag account. Having your contact and tax information up-to-date can help you get a prompt receipt.

Which tax forms are necessary?

• 1099-K: Outlines your gross revenue from Wag 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 Wag taxes?

• Deductions: Identify eligible business expenses related to your Wag activities, such as pet care supplies and transportation costs. This helps reduce your taxable income.
• Quarterly payments: For substantial Wag revenue, consider making estimated tax payments quarterly to avoid penalties at year-end.
• Pet care expenses: Deduct expenses related to providing quality care for the pets under your service including food, toys and grooming.
• Tax credits: Explore potential credits to minimize your overall tax obligation.

What write-offs can you claim for Wag?

• Pet care supplies: Deduct the cost of items you purchase for the care and well-being of the pets you're looking after.
• Transportation costs: If you use your vehicle for Wag-related activities, you may be able to deduct associated expenses such as gas and maintenance.
• Advertising and marketing: Costs related to promoting your Wag services may be eligible for deduction.

When do you file your Wag 1099 taxes?

• January 31: Wag typically sends 1099-K forms by this date. Make sure your contact information on your Wag account is accurate.
• April 15: File all necessary tax forms by this date to meet IRS deadlines. Consider seeking professional assistance for accurate filing.
• Estimated quarterly taxes: These are due every quarter and paying by the deadline helps avoid IRS penalties.

How can FlyFin support your Wag taxes?

• Expert guidance: Rely on our tax professionals for expert advice tailored to your Wag-related income and deductions.
• Tax planning: Strategize for the future with personalized tax planning to optimize your financial well-being.
• Deduction assistance: Maximize your deductions with FlyFin's support in identifying eligible business expenses and write-offs.

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.