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The IRS reminds Americans earning over $600 on PayPal, Venmo, or Cash App transactions to report their earnings

  • 6 Dec 2022 5:29 PM
    Message # 13016164

    We've ALL done it, said it, asked it, and shared it... "here's my cash app, venmo, paypal etc.!" Especially over the past couple of years this method has become the "go to" method of payment for entrepreneurs in the US.  Read this snippet from the article in CNBC news discussing this updated reporting method. 

    "Before 2022, third-party transactions for business owners and side hustlers followed different thresholds: individuals needed to report gross payments exceeding $20,000 and report earnings if they had more than 200 such transactions, according to the IRS. But as a result of the American Rescue Plan Act, any transactions made after March 11, 2021 that exceed $600 must be reported to the IRS, regardless of how many of those transactions you’ve had.

    These earnings were already taxable so this is not a change in tax law, but rather just a reporting change.

    In order to report these earnings and transactions, you’ll need to file Form 1099-K. According to the IRS, you should receive this form from each third-party payment platform you received transactions through. If you incorrectly receive the form for personal transactions, the IRS recommends you contact the payment platform for a correction or to attach an explanation to your tax return." 

    Don't get caught out there without properly reporting your earnings, even if you consider it a "side hustle" the price for NOT reporting will far exceed the money you've received. 

    See the full article here"


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