A new law requires payment apps like Venmo, Paypal, Cash App, and Zelle to report transactions that total $600 or more.
A 1099-K form will be generated which will need to be part of a person's tax returns.
Prior to 2022, the IRS issued a 1099-K form for a business with at least 200 business transactions or at least $20,000 in gross payments.
This new tax reporting requirement was made law when Congress passed the American Rescue Plan.
The tax reporting change will only apply to payments for goods and services exchanged, not to family and friends.
Financial experts recommend using one app for business and one for personal that way things will be separate and easier to control.
The IRS has set up a webpage to make it easier for people to navigate the filing requirement.
