11/25/2023

IRS Changes 1099-K Revenue Threshold

If you earn more than $5,000 on payment apps, you should get a 1099-K in 2024

Under the American Rescue Plan of 2021, payment apps like Venmo, PayPal and Cash App were ordered to send 1099-K tax forms to the Internal Revenue Service (IRS) and to people who earned at least $600 via the platforms starting with 2022 taxes.

But last year, the Internal Revenue Service (IRS) delayed the $600 tax reporting rule for payment apps, meaning that similar to prior years, users of cash apps would only receive a 1099-K tax form if they made $20,000 in revenue from over 200 transactions.

Recent online searches show people are again looking for answers on the latest reporting rules. This viral tweet says the IRS not only delayed the rule, but raised the threshold for reporting for the 2024 tax year.

Please select this link to read the complete article from WBNS-10TV.