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IRS: PayPal and Venmo amounts to report on taxes

If you have a PayPal or Venmo account, it’s important to know you’ll soon need to report certain amounts to the IRS for tax purposes.

cellphone with PayPal app on it which will soon require reporting transactions to the IRS

Many Americans work for themselves, and the easiest way to accept payments from clients is by using some sort of electronic payment service like PayPal or Venmo.

Now, under the American Rescue Act, certain amounts and transactions must be reported to the IRS.

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What will 2022 look like for electronic cash apps and the IRS?

Apps impacted include

  • Venmo
  • PayPal
  • CashApp
  • Etsy
  • Airbnb

What dates will tax refunds be sent out?

Amounts worth $600 or more will need to be reported to the IRS as taxable income.

This began on Jan. 1 and will require a 1099-K.

1099-K explained

The 1099-K form is used for business transactions that add up to over $600 in one calendar year.

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Before the change, the limits were 200 transactions and/or $20,000.

2021 transactions are not being reported, only 2022.

Personal transactions to family and friends for things like dinner or coffee are not going to be taxed.

Payment apps and required reporting a 1099-K

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