Is Reporting Money Transfers on Venmo, Cash App, and PayPal Required for Tax Purposes?

The IRS has delayed the implementation of the 1099-K changes. While reporting your income on your tax return is still required, you will not receive a 1099-K form for your 2022 earnings unless you received over $20,000 in payments across over 200 transactions in 2022. The 1099-K requirements will eventually roll out, possibly for 2023 taxes. If you are self-employed or own a business, creating separate PayPal, Zelle, Cash App or Venmo accounts for your professional transactions is recommended. Payment apps may request tax information, such as employer identification number, individual tax identification number or Social Security number. Freelancers that regularly receive 1099-K forms may find it saves them time when filing their self-employment taxes, as they will receive less paperwork. Personal transactions involving gifts, favors or reimbursements are not considered taxable, and money sent to family and friends will not be taxed by the IRS. It’s important to keep a good record of purchases and online transactions to avoid paying taxes on any nontaxable income.

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Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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