IRS warns Americans over $600 threshold to report Venmo, PayPal payments
The Internal Revenue Service is reminding tax filers to prepare to report transactions of at least $600 that are made through so-called “third-party” facilitators such as Venmo and PayPal.
The agency on Tuesday posted an explainer warning American business owners earning $600 or more per year on payments that are received through apps such as Cash App, Venmo, and PayPal that they will receive a tax form known as Form 1099-K.
The IRS is interested in obtaining data pertaining to transactions involving part-time work, side gigs, and selling goods, according to the agency.
The rule does not apply to noncommercial payments like reimbursing someone for food or rent or other one-off transactions such as selling an old piece of furniture, according to accountants.
Before this year, the threshold for filing a Form 1099-K report was at least 200 transactions totaling an aggregate of at least $20,000.https://nypost.com/2022/11/25/irs-warns-americans-over-600-threshold-to-report-venmo-paypal-payments/