Perspective | Keep track of your Venmo, PayPal and other payment app transactions in case the IRS comes asking - The Washington Post

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A new income tax reporting rule is causing users of various payment apps a lot of anxiety.

Starting this year, all third-party payment processors in the United States are required to report payments received for goods and services of more than $600 a year. The change was made to capture income made by gig workers and entrepreneurs with a side hustle. In the past, companies were only required to send an IRS Form 1099-K for gross payments exceeding $20,000 and more than 200 transactions within a calendar year.

This new rule won’t affect 2021 federal tax returns, but now is the time to get ready for next year. If you’re sending or receiving money through one of these apps, you need to be proactive in making sure you aren’t mistakenly sent a 1099-K.

Eric Bronnenkant, head of tax for online financial adviser Betterment, answered some questions readers had about the new rule.

What to know

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"payment" - Google News
February 09, 2022 at 06:37AM
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Perspective | Keep track of your Venmo, PayPal and other payment app transactions in case the IRS comes asking - The Washington Post
"payment" - Google News
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