Per NY Post
The IRS Now Requires Venmo and PayPal Payments Reports for Transactions Over $600
12/6/2022
The IRS is warning Americans about failure to report Venmo and PayPal transactions over $600. This is due to the 2021 American Rescue Plan Act, which changes how Form 1099-K is used.
Business owners that earn $600 or more per year (not per month) via Cash App, PayPal, or Venmo, will have to include Form 1099-K in their business income upon filing.
The IRS was not always that strict with the transactions over the $600 rule. In fact, before the American Rescue Plan Act of 2021, it had looser enforcement regarding its Form 1099-K.
Before the 2021 Act was passed, a Form 1099-K report was used for at least $20,000 total from at least 200 transactions. This made it more flexible for Americans as they could compile everything in the form.
The IRS says that as long as businesses earn $600 or more per year through apps, they will get a Form 1099-K. Per the agency, they are now looking to collect data regarding selling goods, side gigs, and even part-time work.
The implications of the new requirements won't apply to people spending on restaurants, shopping, or one-time payments for selling something, per CNBC. This means businesses will receive the form and not the basic consumers.
Businesses will get the form from each third-party payment platform they use. If they use Venmo, PayPal, and Cash App, they will receive three forms, one from each platform, respectively.
The administration remains optimistic about the 2021 American Rescue Plan Act, hoping it would close the tax gap and bring in an estimated $8.4 billion from 2021 to 2023, per the JCT.
Another article by CNBC explains that people could receive Form 1099-K for unexpected transactions like reselling tickets. Justin Miller, Evercore Wealth Management's national director of wealth planning, gave a statement expressing the risk it presents.
Miller: "The challenge with the new lower threshold... personal payments and reimbursements could be incorrectly reported as taxable transactions,”
Resources:
See flow at unusualwhales.com/flow.
Moody’s downgrades US credit rating to Aa1 from Aaa
5/17/2025 4:55 AMYouTube, GOOGL, viewers will start seeing ads after ‘peak’ moments in videos
5/16/2025 7:55 PMCEOs say that just a fraction of AI initiatives are actually delivering the return on investment they expected
5/16/2025 7:51 PMOnly 9% of Americans have 10 times their annual income saved for retirement
5/16/2025 7:47 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
+With Unusual Whales
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.