Part 4/9:
- Gradual Implementation: The IRS plans to phase in the full $600 reporting requirement at a later date, giving both taxpayers and platforms time to adapt.
This phased approach aims to reduce confusion and administrative burdens, especially considering the complex nature of distinguishing between personal and business transactions on third-party apps.
Implications for Taxpayers and Users
What Does This Mean for You?
For the current 2023 tax year, the original $600 threshold remains in effect, meaning:
- If you earned more than $600 through freelance work, side gigs, or business activities via apps like PayPal, Venmo, Cash App, or Zelle, you will not receive a 1099-K form unless your transactions also meet the previous thresholds.