New Tax Rule for Venmo, Paypal, Cash App Payments

A new tax rule will apply to those who use payment apps like Venmo, Paypal or Cash App. The rule went into effect on January 1st and doesn’t impose additional taxes on payment app users but does make it harder for someone to evade existing taxes owed if they’re getting paid through the apps for business transactions. Payment app providers will issue users and the IRS a 1099-K form on your business transactions which total more than $600 a year when combined. Business transactions don’t include personal transactions such as money reimbursed by a friend or money for a group gift.