Rules are about to change for third party apps when it comes to filing taxes with the IRS.
Third party payment processors like Venmo and Cashapp will now be forced to send users a 1099 for transactions that total over $600 for the entire year. Right now that is not the case, but it will be.
For 2022 Venmo and Cashapp will not need to send a 1099 to clients unless their transactions total more than $20,000 or there are more than 200 transactions.
The rules were supposed to go into effect for the 2022 tax year, but they allowed for a transition year, meaning it will be in effect for this year and start next year.
The change is to help the IRS tax income that normally can be hidden from them, like at craft shows or for things sold online through Etsy, eBay, and other vendors.
Child tax credits changed back to normal this year as well, meaning parents claiming children could expect smaller refunds than they received last year.
Early Tax Filings Show Smaller Refunds, IRS Data Indicates
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