3. Gather Your Documents
The next step in tax season is to collect all tax documents you have from your employer, bank, and other financial institutions. Keep in mind that if you have a side gig or sell things online and get paid via a payment network like PayPal, the payment network won’t send you a Form 1099-K unless you make at least $20,000 in a year, according to the IRS.
In this case, it’s important to keep your records yourself so you can easily report all your income. If your side gig makes a minimum of $600, you’ll receive a Form 1099-MISC. For earning under this amount, you won’t receive a Form 1099-MISC, but you must still report all income. Also, make sure that your social security numbers are correct.
