Working Families Tax Cuts Support Self-Employed Workers
Washington, D.C.—Thanks to Working Families Tax Cuts provisions advanced by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho), small businesses and entrepreneurs managing today’s deadline for Internal Revenue Service (IRS) Form 1099 have a lighter paperwork burden than they would have if the law had not passed. The new law replaced the Democrats’ onerous IRS reporting requirements that forced third-party networks, like Venmo and PayPal, and people that hire independent contractors to file paperwork reporting small payments to casual sellers and service providers—requirements that threatened to overwhelm both taxpayers and the IRS. The new law also increased the reporting threshold to a higher, more practical standard, providing relief for millions of taxpayers.
“Small businesses and entrepreneurs help keep our economy dynamic,” said Crapo. “Cutting this red tape spares them the burden of managing unnecessary tax paperwork and protects all Americans from intrusive supervision. Now, taxpayers across the country can get back to working hard for their businesses and communities, not the IRS.”
Key wins:
- Repeal of Democrats’ $600 reporting requirement for payments through third-party networks like Venmo or PayPal;
- Increase of 1099-MISC and 1099-NEC reporting thresholds for small businesses and independent contractors to $2,000;
- Permanent lower tax rates;
- Permanent increased standard deduction; and
- No tax on tips for millions of tipped workers.
What they are saying:
“These historic tax cuts lay the foundation for generational prosperity on Main Street – ushering in a new era of growth, hiring, investment, and opportunity for job creators.” – Administrator of the Small Business Administration Kelly Loeffler
Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.
Previous Article