San Jose, CA, United States, 8th Dec 2022 — FlyFin, the world’s number one AI-based tax preparation and tax filing service, introduced a list of tax hacks to help self-employed people save on their taxes. FlyFin’s new resources offer a variety of ways to reduce taxable income and directly lower the amount of tax owed. The new resources cover a variety of topics, including strategies for responsibly paying taxes, highlighting potential penalties and deductible expenses that may not be on the radar for many taxpayers.
In particular, the American Rescue Plan Act of 2021 resulted in a new IRS rule requiring a $600 threshold on payment apps such as Venmo, Zelle, Cash App, etc. In response to this new tax law, FlyFin’s new resources aim to simplify the tax filing process around the new tax filing rule. According to the SBA, there are approximately 30 million small businesses, freelancers, solo-preneurs and independent contractors in the US as of 2019. The new tax rule will affect this collective group for the 2022 tax year in the following ways:
- Freelancers and gig workers will be required to report any payments of $600 or more made through payment apps, regardless of the number of transactions, as income on their tax returns.
- Small business owners will be required to issue Form 1099-K for payments of $600 or more made through payment apps, regardless of the number of transactions. A 1099-K form must be filed with the IRS by January 31 of the following year.
- Freelancers and gig workers will be required to pay self-employment taxes on any payments of $600 or more made through payment apps, regardless of the number of transactions.
- Small business owners may be penalized for failing to issue Form 1099-K for payments of $600 or more made through payment apps, regardless of the number of transactions.
“We understand that navigating the world of taxes can be very challenging, especially for self-employed individuals. That’s why we’re excited to offer these new tips and strategies to help our customers save on their taxes in a tax environment that’s always changing, so that they can meet their tax obligations with as much tax savings as possible. FlyFin’s goal is to give our customers all the knowledge and tools they need to make the most informed decisions about their taxes. We’re constantly updating our resources to ensure that our customers have access to the latest information and strategies,” said Jaideep Singh, Co-founder and CEO of FlyFin.
Building upon the company’s award-winning AI platform, FlyFin has assembled a comprehensive Tax Resource Center that helps freelancers and self-employed individuals prepare and file their taxes. Taxpayers can quickly find topics around self-employment, tax deductions, self-employed retirement plans, as well as practical how-to guidance. To demystify tax preparation, FlyFin’s growing Tax Resource Center offers free tools, calculators, guides, tax forms, and more.
FlyFin is an award-winning, AI-powered, web 3.0 platform that provides self-employed, sub-contractors, independent contractors, gig workers, freelancers and creator economy workers with a convenient, easy-to-use and affordable tax filing solution. FlyFin helps individuals maximize self-employment tax deductions and income tax refunds. With a “Man + Machine” approach, FlyFin leverages AI paired with highly experienced tax CPAs to deliver automation that eliminates 95% of the work required for 1099 self-employed individuals to prepare their taxes. FlyFin is a privately-held, venture-backed company based in San Jose, California.
Contact Person: Carmen Hughes
City: San Jose
Country: United States
The post FlyFin Introduces New Tax Tips and Strategies Just in Time for Tax Filers to Adhere to New IRS Reporting Rule for $600 Threshold on Payment Apps appeared first on King Newswire.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Biz Economics journalist was involved in the writing and production of this article.