IRS Delays New $600 Tax Reporting Rule for Venmo, Cash App Until 2025
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The IRS has delayed implementing the $600 reporting threshold for payment apps like Venmo and Cash App. For 2024, the existing $20,000 and 200 transactions threshold still applies.
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The new $600 threshold will now go into effect in 2025 instead, meaning transactions over $600 will trigger a 1099-K form from the payment apps.
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Some states have much lower thresholds already in place, like $600 in Maryland, Massachusetts, Vermont, and Virginia.
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You still have to report business income from payment apps regardless of whether you get a 1099-K form or not.
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The rules are mainly focused on those using the apps for business income and side hustles, not personal reimbursements from friends.