With tax season officially underway, Americans should be on the lookout for new laws that could affect their taxes.
That includes millions of self-employed individuals and other people with side hustles who rely on payment apps like Venmo, PayPal and Cash App – and who could be subject to a new tax law that just took effect in January.
Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.
The new rule is intended to help crack down on tax cheats.
What information does the IRS collect from taxpayers on Venmo, PayPal?
- by: Megan Henney
- 02-03-2022
- Source:
Fox Business
- 02/09/2022
Hmm Venmo or Zelle? by Tech Daily is licensed under Unsplash unsplash.com
Hmm Venmo or Zelle? by Tech Daily is licensed under Unsplash unsplash.com
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