IRS warns taxpayers about new $600 threshold for third-party payment reporting

[JBWJr]

The IRS on Tuesday shared tips for the upcoming tax season — including a reminder about the new $600 threshold for receiving Form 1099-K for third-party payments.
The change applies to payments from third-party networks, such as Venmo or PayPal, for transactions such as part-time work, side jobs or selling goods, according to the IRS.
Before 2022, the federal Form 1099-K reporting threshold was for taxpayers with more than 200 transactions worth an aggregate above $20,000. However, Congress slashed the limit as part of the American Rescue Plan Act of 2021, and a single transaction over $600 may now trigger the form.

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[Koolbreez]

F..kum!!!

 

[Cadcom]

F them. They going to have to earn that by tracking me down and hassling me for any thing else.

 

[Ixraypeople]

FJB, FIRS, FATF etc......

 

[bigt61]

Not for ZELLE

 

[KB1176]

Just be careful if PayPal or I think Venmo. They DO NOT send a copy in the mail like every other tax document. They expect you to download it.

I got a bill with penalties from the IRS 2 years later. Whatever PayPal sends them, they count as income with no cost basis associated with it so you’re taxed as pure income. Ticketmaster is doing it this year too.

Have to download a form c and factor in cost of goods, mileage and all the other Bs.

Not fun.

 

[The Southern Gentlemen]

Cash is and always will be king!!

 

[palmettomoon]

They can **** right the hell off. I made no profit on anything I've sold this year.

 

[KB1176]

They can **** right the hell off. I made no profit on anything I've sold this year.

I tried that approach. They sent a certified letter…

 

[palmettomoon]

I tried that approach. They sent a certified letter…

You cannot be charged income tax on an item that you lost money on. Period. It's ridiculous.