Month: December 2022

How Will Cash App Payments Affect Your Taxes?

Written by Paul Belfiore on December 30, 2022. Posted in Blog, Taxes.

Brookline, NH Taxpayer Has Questions

With the prevalence of money exchanged on Venmo, PayPal, and other cash apps, the IRS has stated that it will be cracking down on those receiving cash app money exceeding $600 in the calendar year. The threshold for receiving third-party payments is $600. When the amount exceeds this, the recipient is required to file a 1099-K. In past years Form 1099-K was only required for gross income from cash apps exceeding $20,000 or more than 200 separate transactions during the calendar year. This change will affect many sellers who receive payment through these cash apps.

What Effect Do Stock Losses Have on Your Taxes?

Written by Paul Belfiore on December 15, 2022. Posted in Blog, Taxes.

Nashua, NH Taxpayer Has Questions

Capital losses from the sale of stock, mutual funds, and other investments can help to reduce your tax bill. If you had any capital gains over the year, this loss will first be used to offset the taxes paid on these gains. For those years where you are still at a capital loss, this deduction can reduce taxes on other income, including salary and interest. This excess deduction is capped at $3,000 per year. Any more than that amount can be carried over into subsequent years as a future tax deduction.