IRS on $600 or more using 3rd party apps

[NoMoreE46]

This might be the threshold for IRS reporting 1099k.

https://www.wfmynews2.com/article/news/local/zelle-cash-app-paypal-venmo-apple-pay-irs-prove-what-th...

[pizzadude]

Thanks for posting -- there have been a few threads on this topic, most recently this one which references the delay / timing for this change.

Most payment apps have an option to indicate a payment as being for "goods / services" which I'm assuming would be the determining factor in whether a 1099 is generated. 

[NoMoreE46]

Yup- I remember your article  @pizzadude and it stuck with me.  That is why I have been following it....

Looks like this will be implemented by the IRS for 2024.

I see this curbing the usage for a lot of these apps next year.

[GApeachy]

"The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member for a household bill."  - as per IRS.gov 

[markbeiser]

Best to keep anonymous cash transactions anonymous.

[GApeachy]

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@markbeiser wrote:

Best to keep anonymous cash transactions anonymous.

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Yep, that mason jar outback or the good ol' mattress trick don't look so backwoods afterall.  Cash is King.......I grew up hearing about Cash Discounts....I see why.....goodness!

[NoMoreE46]

Thanks for delving into the IRS publication @GApeachy. 

Can't help but to note the key phrase:   "The law is not intended..."    which- to me,  indicates that this could  be used to track...

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@GApeachy wrote:

"The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member for a household bill."  - as per IRS.gov 

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[markbeiser]

Well, in the current inflation environment, you run the risk of that mason jar of cash loosing value by more than any discount you may get for paying in cash, but keeping some cash on hand definitely has value, especially if it is earned outside of anything that has been reported.
I'm in a skilled trade that lends itself to occasionally bartering value for value, and/or cash transactions.

[Anonymous]

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@markbeiser wrote:

Well, in the current inflation environment, you run the risk of that mason jar of cash loosing value by more than any discount you may get for paying in cash, but keeping some cash on hand definitely has value, especially if it is earned outside of anything that has been reported.
I'm in a skilled trade that lends itself to occasionally bartering value for value, and/or cash transactions.

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And the IRS would remind you:

Reporting Bartering Income

You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040-X, Amended U.S. Individual Income Tax Return. Refer to Topic No. 308 and Should I File an Amended Return? for information on filing an amended return.

And as for cash transactions, well,...!

[M_Smart007]

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@Anonymous wrote:

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@markbeiser wrote:

Well, in the current inflation environment, you run the risk of that mason jar of cash loosing value by more than any discount you may get for paying in cash, but keeping some cash on hand definitely has value, especially if it is earned outside of anything that has been reported.
I'm in a skilled trade that lends itself to occasionally bartering value for value, and/or cash transactions.

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And the IRS would remind you:

Reporting Bartering Income

You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040-X, Amended U.S. Individual Income Tax Return. Refer to Topic No. 308 and Should I File an Amended Return? for information on filing an amended return.

And as for cash transactions, well,...!

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Spoiler Alert!

I'll stick to begging