December 28, 2022
Remember that whole paying taxes on $600 received for business purposes from Venmo, PayPal, CashApp and those types of platforms?
Well the IRS you can forget about it – for now.
I told you in this video two weeks ago, the IRS was implementing a new rule for 2022 outlined in the American Rescue Act that required Americans to pay taxes on business income over $600 received through one of those digital payment platforms. Anyone who was using Venmo, PayPal and CashApp was supposed to be getting a 1099 from those companies by late January.
But the IRS just dropped some new guidance saying 2022 will actually be a “transition” year. So the IRS won’t be enforcing that $600 threshold. They will still be enforcing the original threshold for business transactions on digital platforms of either 200 transactions or $20,000 total for the taxable year when you file your taxes in 2023.
Now, you may still be getting a 1099 from one of those payment platforms next month that reflects the $600 threshold. The IRS says it will be sending out more guidance about what you should do with that soon.
More info about this change from the IRS here.
