IRS changes tax reporting rules for payment apps starting in 2024
cnet.com —
Starting in 2024, the IRS will require payment apps like PayPal, Venmo, and Cash App to issue tax form 1099-K to users who earn over $5,000. This change follows delays from previous plans to report earnings over $600. Previously, the threshold for receiving a 1099-K was $20,000 and 200 transactions. The new rule aims to improve tax reporting for freelancers and side hustlers, while personal transactions remain non-taxable. Zelle is exempt from this reporting requirement, as it does not hold funds. Users must report income from Zelle independently. The IRS emphasizes that personal payments, such as those to family or friends, are not taxable.