IRS: Venmo, PayPal And CashApp Freelancers Face 2024 Reporting Requirements

After a two-year delay, the IRS is set to implement its new reporting requirement for income earned through third-party payment apps like PayPal, Venmo, Zelle, and Cash App. The rule, which was originally scheduled for 2022 and delayed to 2023, means that users exceeding an annual income of $600 may receive a 1099-K tax form. The IRS decided to delay implementation to allow payment apps more time to prepare for the change and to avoid confusion between taxable and nontaxable transactions. The phased rollout will initially target freelancers and business owners earning over $5,000 before eventually including a minimum threshold of $600.