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Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year

pizzadude
Moderator

Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year

Millions of small business owners who rely on payment apps like Venmo, PayPal and Cash App could be subject to a new tax law that just took effect in January.

 

Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.

 

https://www.foxbusiness.com/money/venmo-paypal-cash-app-report-payments-irs

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 1 of 6
5 REPLIES 5
gdale6
Moderator

Re: Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year

I cant say what I think of the government and their intrusion into everything. At least its only for ten years as it was pushed thru in a reconciliation bill and those effects only last 10 years. They could always make it permanent but I dont see that happening.

Message 2 of 6
Goos
Regular Contributor

Re: Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year


@gdale6 wrote:

I cant say what I think of the government and their intrusion into everything. At least its only for ten years as it was pushed thru in a reconciliation bill and those effects only last 10 years. They could always make it permanent but I dont see that happening.


I have been trying to find info on and can't seem to find an answer but I send my wife money every month for household expenses because we do not co mingle money . Does this count towards this ? If so I'm going to have to stop . 

Message 3 of 6
pizzadude
Moderator

Re: Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year


@Goos wrote:


I have been trying to find info on and can't seem to find an answer but I send my wife money every month for household expenses because we do not co mingle money . Does this count towards this ? If so I'm going to have to stop . 

No it wouldn't count.  Personal reimbursements / gifts would not be included in this reporting requirement

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 6
plaidington
Frequent Contributor

Re: Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year

From Venmo - only applies to BUSINESS ACCOUNTS.

 

For the 2021 tax year, Venmo will issue a Form 1099-K to business profile owners who have passed the IRS reporting threshold for their state of residence:

  • For most states, the threshold is $20,000 USD in gross payment volume from sales of goods or services in a single year, AND 200 payments for goods and services in the same year
  • For residents of Massachusetts, Maryland, Vermont, and Virginia, the threshold is $600 USD, irrespective of the number of transactions 
  • For Illinois residents, the threshold is $1,000 USD with 3 or more transactions 

Individuals who have sold cryptocurrency on Venmo during the 2021 tax year may receive a Form 1099-MISC, irrespective of their state of residence.

If you haven’t sold crypto or received payments for goods and services on Venmo, you can still download your account statements from venmo.com to help with any other reporting obligations you may have.

Personal cards:
Amex Cash Magnet
Chase Freedom Flex World MasterCard
Discover It
NFCU Flagship Visa Sig
NFCU More Rewards Amex
US Bank Cash+ Visa Sig
Business cards:
Amex Blue Business Cash (Hidden TL)
FICO 8 Scores: EX 813 | EQ 819 | TU 813
Will answer questions about underwriting.
Message 5 of 6
pizzadude
Moderator

Re: Venmo, PayPal and Cash App to report payments of $600 or more to IRS this year

Yes I believe this change is effective starting tax year 2022, any transactions from last year would be reported under the previous guidance. 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 6
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