news If You Make Over $600 on PayPal, Venmo or Cash App in 2022, the IRS Will Know

[lennco]

You should receive a 1099-K for any earnings over $600 that came through digital payment apps.

If you started a side hustle or worked for yourself this year, you may have received payments through digital apps like PayPal, Cash App, Zelle or Venmo. If so, the IRS will know about it.

Self-employed individuals are always required to report their earnings when filing their tax returns, but a new regulation for 2022 requires digital payment apps to report your earnings over $600 directly to the IRS via tax form 1099-K. You'll then receive a copy of your 1099-K in late January or February.

What exactly does this new rule mean for your taxes? We'll walk you through what's changed and debunk a few myths along the way.
https://www.cnet.com/personal-finan...enmo-or-cash-app-this-year-the-irs-will-know/

 

[pablohc86]

interested to know what NPers think on this

 

[biggie]

Hi

all it means, is ...
that amount would be considered other income, if you have job or something

if that is only source of income, then depending on amount, you may have to pay self-employment tax for that income.
but it all depends on your filing status and allowed deductions


note: i am not an account or tax lawyer

imo...

 

[twiki]

I'm surprised that you can make $20 and they won't know.

 

[narbuq]

Long live Stripe

 

[The Durfer]

i was already reporting my paypal earnings so donate $2 to the presidential campaign?

 

[vincew]

It went from a $20000 threshold to $600 which is ridiculous. I think Ebay is trying to get it back up to $10000 which is reasonable.

I believe if you use Zelle - unlike the others - you will not get a 1099 form if you make $600+.

 

[topdom]

IRS is an illegal entitiy. If you don't file tax return, probably noting will happen, but don't trust me (maybe they can still harrass at least).

 

[karmaco]

Long live Stripe

All payment apps are required to do it including Stripe.

 

[Robot]

All payment apps are required to do it including Stripe.

What if you sell domains for less than $600 and then cash out at $599.99?

 

[vincew]

All payment apps are required to do it including Stripe.

That's what I thought too but I checked Zelle a couple months ago and they apparently don't report to the IRS.

https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs

https://www.zellepay.com/faq/i-have...ill-zelle-report-how-much-money-i-receive-irs