Rossen Reports: New IRS guidelines for Venmo and PayPal users

Jeff Rossen explains the new IRS guidelines for income received through payment apps

Jeff Rossen explains the new IRS guidelines for income received through payment apps

Hi. Yeah, if you have *** freelance job or *** side hustle where you get paid through Venmo or paypal, we've told you before. The IRS is shaking up the rules for third party payment platforms and they just released new guidelines on how they're gonna handle payment transactions on those apps. So listen up for the 2024 tax year, you have to report earned income of more than $5000 on *** 1099 K form for 2025 that drops to 25 $500 and for 2026 and beyond, it drops again to just $600. Remember, this is strictly if you make income, not personal transactions. So if you're using Venmo to split rent with your roommates doesn't count. But let's say you're flipping furniture on Facebook marketplace for *** profit that would count depending on how much money you made. I'm gonna share the new rules in my Ross and reports newsletter. Just scan the QR code on your screen to sign up. We share bonus content exclusive deals. You'll love it and it's free back to you.

Rossen Reports: New IRS guidelines for Venmo and PayPal users

Jeff Rossen explains the new IRS guidelines for income received through payment apps

Do you have a freelance job or a side hustle where you get paid through an app like Venmo or PayPal?Rossen Reports has previously reported that the IRS is shaking up rules for third-party payment platforms. Under new guidelines released this November, these platforms will send you a 1099-K form for the 2024 tax year if you earned an income of more than $5000. For 2025, the threshold drops to $2500. For 2026 and beyond, the threshold drops to $600.The $600 rule, part of the American Rescue Plan, was supposed to take effect for the 2022 tax year, but the rollout was delayed. Before that, the threshold for third-party payment platforms to send you a 1099-K form was $20,000 and more than 200 transactions.These rules apply only to income-generating transactions, not personal ones like splitting rent between roommates, or bills between your friends.Have a question for Jeff Rossen? He’s answering your consumer questions every Friday in the new segment "Rossen Responds." Email your questions to him at [email protected]. Want bonus content and exclusive deals? Make sure to sign up for our free newsletter at RossenReports.com.

Do you have a freelance job or a side hustle where you get paid through an app like Venmo or PayPal?

Rossen Reports has previously reported that the IRS is shaking up rules for third-party payment platforms. Under new guidelines released this November, these platforms will send you a 1099-K form for the 2024 tax year if you earned an income of more than $5000. For 2025, the threshold drops to $2500.

For 2026 and beyond, the threshold drops to $600.The $600 rule, part of the American Rescue Plan, was supposed to take effect for the 2022 tax year, but the rollout was delayed. Before that, the threshold for third-party payment platforms to send you a 1099-K form was $20,000 and more than 200 transactions.

These rules apply only to income-generating transactions, not personal ones like splitting rent between roommates, or bills between your friends.

Have a question for Jeff Rossen? He’s answering your consumer questions every Friday in the new segment "Rossen Responds." Email your questions to him at [email protected].

Want bonus content and exclusive deals? Make sure to sign up for our free newsletter at RossenReports.com.

Rossen Reports: New IRS guidelines for Venmo and PayPal users

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