• New Reporting Threshold: The IRS has set a new threshold for 2023. If your freelancing income on Willapay reaches or exceeds $600 across any number of transactions by tax filing time, you will receive a 1099. It is crucial to accurately track your Willapay 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 Willapay tax management.

Understanding Willapay Taxes

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

Who Needs to Pay Willapay Taxes?

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

How Will Willapay Deliver Your 1099s?

Upon reaching the $600 earnings threshold on Willapay, the platform will issue a 1099 form. Typically, these forms are sent electronically through your Willapay 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 Willapay transactions.
• 1099-MISC: Additional income, such as bonuses or extra freelancing services, 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 Willapay Taxes?

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

What Write-Offs Can You Claim for Willapay Income?

• Software and Tools: You can write off expenses for any subscriptions, software, and tools needed to provide your freelancing services on Willapay.
• Business Supplies: Deduct the cost of any supplies you need to perform your freelancing job on Willapay.
• Marketing and Advertising: You can also deduct the cost of advertising your freelancing services on Willapay.

When Do You File Your Willapay Taxes?

• January 31: Willapay typically sends 1099 forms by this date. Ensure your contact information on your Willapay 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 freelancers with substantial earnings through Willapay, 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 Willapay 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.