Venmo, Paypal, Cash App must report payments of $600 or more to IRS

[Synthaholic]

Selling that $1,000 comic book or baseball card on eBay thinking the money will stay hidden from the Taxman? Nope!

Venmo, Paypal, Cash App must report payments of $600 or more to IRS​

A tax law that takes effect in January will require third-party payment processors like PayPal, Venmo and Cash App to report a user’s business transactions to the Internal Revenue Service if they exceed $600 in a year.

While the law is not new, it has changed. Before, the third-party payment apps were required to report gross income for users who exceeded $20,000 or who had 200 separate transactions within the calendar year. The information is reported on Form 1099-K.


Form 1099-K is used to report to the IRS goods and services payments received by a business or individual in the calendar year.

The $600 rule applies to payments received for goods and services transactions. For instance, if you sell products on Etsy or eBay, you will get a 1099-K form if you sell more than $600 worth of products.

“You may notice that in the coming months we will ask you for your tax information, like a social security number or tax ID, if you haven’t provided it to us already, in order to continue using your account to accept payments for the sale of goods and services transactions and to ensure there aren’t any issues when these changes take effect in 2022,” PayPal says in a blog post.

“This helps us meet our obligations to the IRS and ensures that you will be able to continue using your account and access PayPal and Venmo features and services,” the post continues.

You will receive the forms beginning next year for this year’s transactions. The form will be used to fill out your 2022 income taxes that are due in April 2023.

It does not apply if a person is using the service to send someone a gift or pay someone back for buying a dinner. According to some payment providers, they will be asking for more information about transactions to see which category the transactions fall into.

Also, if you sell something at a loss; for instance, you purchased a bike for $400 and sold it for $300, the amount is not subject to the new law.

 

[1srelluc]

Also the burden of proof is on the taxpayer to prove to the IRS you suffered a loss on that bike.....Got a receipt for that?

Meh, one good thing about it is flea markets and the various for sale outlets like FB marketplace will be more popular than ever.

 

[NewsVine_Mariyam]

Selling that $1,000 comic book or baseball card on eBay thinking the money will stay hidden from the Taxman? Nope!

Venmo, Paypal, Cash App must report payments of $600 or more to IRS​

A tax law that takes effect in January will require third-party payment processors like PayPal, Venmo and Cash App to report a user’s business transactions to the Internal Revenue Service if they exceed $600 in a year.

While the law is not new, it has changed. Before, the third-party payment apps were required to report gross income for users who exceeded $20,000 or who had 200 separate transactions within the calendar year. The information is reported on Form 1099-K.


Form 1099-K is used to report to the IRS goods and services payments received by a business or individual in the calendar year.

The $600 rule applies to payments received for goods and services transactions. For instance, if you sell products on Etsy or eBay, you will get a 1099-K form if you sell more than $600 worth of products.

“You may notice that in the coming months we will ask you for your tax information, like a social security number or tax ID, if you haven’t provided it to us already, in order to continue using your account to accept payments for the sale of goods and services transactions and to ensure there aren’t any issues when these changes take effect in 2022,” PayPal says in a blog post.

“This helps us meet our obligations to the IRS and ensures that you will be able to continue using your account and access PayPal and Venmo features and services,” the post continues.

You will receive the forms beginning next year for this year’s transactions. The form will be used to fill out your 2022 income taxes that are due in April 2023.

It does not apply if a person is using the service to send someone a gift or pay someone back for buying a dinner. According to some payment providers, they will be asking for more information about transactions to see which category the transactions fall into.

Also, if you sell something at a loss; for instance, you purchased a bike for $400 and sold it for $300, the amount is not subject to the new law.

Do you happen to know if previous transfer methods had the same reporting requirements? I thought it usual to say the least when my bank suddenly removed a money transfer feature from it's banking application, without notifying me or giving me another option besides Zelle especially since by doing so, they failed to send out a couple of loan payments that I had setup for automatic payment.

Luckily for me, I had prepaid these loans by several months so as far as the creditor was concerned, I never missed a payment because I was ahead instead of behind and wasn't ever in arrears but I still think that's a particularly messed up thing to do to a customer because otherwise my 100% of payments on time going back years would have been negatively impacted.

 

[Turtlesoup]

Also the burden of proof is on the taxpayer to prove to the IRS you suffered a loss on that bike.....Got a receipt for that?

Meh, one good thing about it is flea markets and the various for sale outlets like FB marketplace will be more popular than ever.

I used to say Cash was King---now It is going to be Crypto Currency to avoid taxes.

 

[Synthaholic]

I used to say Cash was King---now It is going to be Crypto Currency to avoid taxes.

Another "conservative" who claims they love America, while looking to cheat her ever chance they get.

 

[1srelluc]

Another "conservative" who claims they love America, while looking to cheat her ever chance they get.

They pick my pocket enough as it is.....And for what, to commission more Ivy League misery studies on how to pick it further?

Just this year I received a low six-figure check from a non-publicly traded company I have stock in that sold off part of the business. Now I'm just waiting to see how much the IRS is going to fuck me out of before I can start some home renovation projects with the balance.

Left to my own devices I would have put it all into my home which would have provided more jobs through the various contractors and supported the places where materials were purchased.

As it is I'll have at least 1/3rd less money to do those things with so fewer people will see a direct benefit.....All to give it away to some land-whale sitting at home on their ass or other worthless things.

 

[MisterBeale]

Another "conservative" who claims they love America, while looking to cheat her ever chance they get.

There is a big difference between loving America and recognizing that the government and bureaucracy are lawless and out of control.

Link to me the legislation that mandates folks need to have this experimental "emergency use authorized," genetic jab to be employed, travel, shop, etc., and folks will all gladly pay their taxes, or where the government gets off even paying for this shit and all these testings on folks that have already have had three injections, that were supposed to keep them from getting sick. . . .

Otherwise? I don't believe anyone owes that government one red dime for the totalitarian dictatorship it is starting to create out of their money.

 

[toobfreak]

Selling that $1,000 comic book or baseball card on eBay thinking the money will stay hidden from the Taxman? Nope!

Selling a comic book on eBay isn't earned income, moron, anymore than taking a fishingrod you own and trading it for a bowling ball.

 

[Synthaholic]

Selling a comic book on eBay isn't earned income, moron, anymore than taking a fishingrod you own and trading it for a bowling ball.

The OP says nothing about earned income, dimwit.

 

[toobfreak]

The OP says nothing about earned income, dimwit.

I wouldn't expect you to know much about earned income.

 

[Resnic]

Payment apps will now have to report transactions to IRS

The IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.

www.dailymail.co.uk

Great, more reporting to uncle bidens irs. Guess I'm done selling anything worth anything on eBay.

 

[jbrownson0831]

Payment apps will now have to report transactions to IRS

The IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.

www.dailymail.co.uk

Great, more reporting to uncle bidens irs. Guess I'm done selling anything worth anything on eBay.

Vee vill monitor all zee tranzactions.....Sieeg Heil!!

 

[CrusaderFrank]

Payment apps will now have to report transactions to IRS

The IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.

www.dailymail.co.uk

Great, more reporting to uncle bidens irs. Guess I'm done selling anything worth anything on eBay.

10% for the Big Guy

unfuckingbelievable!

Scrap the IRS, make the States pay their ratable portion

 

[SassyIrishLass]

Just split the transactions....duh

But I agree it's stupid

 

[pknopp]

Payment apps will now have to report transactions to IRS

The IRS is cracking down on payments made through third-party apps, requiring platforms like Venmo, PayPal and Cash App to report transactions if they exceed $600 in one year.

www.dailymail.co.uk

Great, more reporting to uncle bidens irs. Guess I'm done selling anything worth anything on eBay.

If you sold as a profit that has always been taxable. Surely you are not saying on a public message board you have been evading paying your taxes are you?

 

[Ringel05]

Well, so much for the DNC being the champion of small business.............

 

[Turtlesoup]

Another "conservative" who claims they love America, while looking to cheat her ever chance they get.

Sythn--another dead beat who thinks everyone else owes her a free ride. I pay more than you make a year and I am very tired of carrying around the communist deadbeats like yourself.

No one should be paying over a 1/3 of their salary while deadbeats like you get kickbacks. We need welfare and EIC reform---if you don't pay in, you don't get other peoples tax money.

I give money to my mother for all holidays---in the Thousands of $$$ each time. It isn't for the IRS or for dead beats like you to get a percentage...It is to help my mother out and it is none of the IRS's business. Likewise I have amassed several antiques over the year---If I decide to sell them instead of allowing movers to steal or break them as they are apt to do----the IRS and you shouldn't be getting a cut.

 

[jbrownson0831]

Sythn--another dead beat who thinks everyone else owes her a free ride. I pay more than you make a year and I am very tired of carrying around the communist deadbeats like yourself.

No one should be paying over a 1/3 of their salary while deadbeats like you get kickbacks. We need welfare and EIC reform---if you don't pay in, you don't get other peoples tax money.

I give money to my mother for all holidays---in the Thousands of $$$ each time. It isn't for the IRS or for dead beats like you to get a percentage...It is to help my mother out and it is none of the IRS's business. Likewise I have amassed several antiques over the year---If I decide to sell them instead of allowing movers to steal or break them as they are apt to do----the IRS and you shouldn't be getting a cut.

Amen.....Dimmer atheists won't understand that word either.