IRS Announces Changes for CashApp, Venmo Users
PRESQUE ISLE, Maine (WAGM) -
The IRS has made some changes to the reporting requirements of some Money Transfer app users.
Anyone who recieves over 600 dollars for goods or services using popular money transfer apps like CashApp, Paypal, and Venmo among others must report that income when they file their taxes. If money is received for personal use, regardless of the amount, it remains untaxed. According to Tim Poitras of Chester M. Kearney, the apps have ways of tracking the purpose of a transaction, and will provide users with a 1099 form if applicable.
“What the IRS is trying to do is bring the reporting requirement for CashApp users, Venmo, Paypal, more in line with the traditional 600 dollar reporting requirement that you traditionally see with 1099′s. anyone that’s receiving funds for their business, so if you’re an eBay seller or Etsy seller, is now going to see that 600 dollar threshold. It used to be 20,000 dollars”
Poitras wants to remind people that Tax Day has moved from April 15th to April 19th this year due to federal holidays observances.
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