Irs and Venmo apps and other cash apps

[drive10]

Irs is implementing new program for cash apps like Venmo and others. Any transactions more than 600$ will be reported to irs as income. At end of the year when doing income taxes and income reported on 1040 doesn’t match . Venmo transactions,IRS will send out tax bill for the unpaid taxes. So I understand you have to keep records of all transactions over 600$ and report as income .

[Baconman]

Just keep it under 599 and you're good

[drive10]

Yes

[Exchequer]

I’m pretty sure it’s not just a single transaction of $600 or greater but receiving accumulated transactions during a fiscal year that exceed $600. That will get you a 1099-K form. You just want to remember to note the transaction as a gift or a reimbursement. Not to pay for goods or services.

[AgFox]

Yeah its $600 per year.

[Johnsson]

Need to be a CPA, so when we are at work and cash app the lunch to one persons bill.. you don't want to be on the receiving end of the money

[drive10]

I don’t think it will bother you guys because you are paying the bill . But the person receiving payment will have to pay taxes . So if baconman pays someone 100$ a month , one person receiving pay tax . By new law cash apps have to report when payments reach 600 $. If Brando gets bbb bill passed they doing the same to you checking account.

[Johnsson]

The payment apps were previously required to send users 1099-K forms if their gross income exceeded $20,000 or they had more than 200 transactions per year.

The new tax law was part of the March 2021 American Rescue Plan, which passed with no Republican votes.
The new rule is only for goods and services transactions, not personal, such as paying a roommate for rent or reimbursing a friend. It also excludes anyone selling a personal item at a loss, such as a couch bought for $700 and sold for $650.

The cash apps will now be required to send the 1099-K form to businesses with electronic transactions greater than $600. The new change will apply for the 2022 tax season.
https://www.google.com/url?sa=t&sour...fV-ooTHhaoVlif

[Rustonbailey]

It’s no different than any other contractor that does business. When businesses contract with smaller entities , at $600 they are required to issue a 1099, with a copy to the IRS.

[pluckmeup]

So if i recieve a total of more rhen 600.00 from friend and family paying back for splitting expenses or such, I would not get taxed?

[drive10]

Only if you are paid through one of cash apps. When into effect Jan1 feds are montering cash apps .

[tuckahoe]

Sounds like good reason not to use cash apps. They are wanting to monitor our bank accounts also!

[Zenovia]

Originally Posted by drive10

Irs is implementing new program for cash apps like Venmo and others. Any transactions more than 600$ will be reported to irs as income. At end of the year when doing income taxes and income reported on 1040 doesn’t match . Venmo transactions,IRS will send out tax bill for the unpaid taxes. So I understand you have to keep records of all transactions over 600$ and report as income .

Well dang, that sucks in the worst way. Thanks for sharing Drive10 great thread, with good questions and knowledgeable information!
Ole school way is always the best way!

[scottprestons]

yeah, dont use cash apps. Stick to cash

[Unique_Carpenter]

Ignoring that the dead president picture coupons are the top line of transactions, any decent bean counter can easily turn dollar amounts on a 1099k into a non-taxable item on a tax return. You need to find one that can be trusted though. And that aspect again takes the convo back to using those president picture coupons.