IRS Change: Here’s What PayPal, Venmo and Cash App Users Need to Know About Their 2023 Taxes – By Courtney Johnston (CNET) / Jan 14, 2024
If you earn freelancer income through third-party payment apps, don’t expect a 1099-K this month.
The IRS plans to finally implement its new 1099-K reporting requirement this year. That means anyone who receives $5,000 or more in income via third-party payment apps such as PayPal, Venmo, Cash App or Zelle in 2024 will receive a 1099-K next year.
Originally slated to take effect in 2022, this IRS reporting change will eventually have payment apps report income over $600 to the tax agency. Previously, third-party apps only sent 1099-Ks to users who received $20,000 in commercial payments across more than 200 transactions.
For your 2024 taxes (which you’ll file in 2025), the IRS is planning a phased rollout, requiring payment apps to report freelancer and business owner earnings over $5,000 instead of $600. The hope is that raising the threshold will reduce the risk of inaccuracies while also giving the agency and payment apps more time to work toward the eventual $600 minimum.
