Did you work a side hustle or freelance gig this year and get paid through PayPal, Venmo, Cash App or another third-party payment app? If so, you may have new rules to follow when filing your tax return next year.
You’ll receive tax form 1099-K if you earned more than $5,000 in untaxed income in 2024 and were paid via a third-party payment app. This rule has been delayed two years in a row, and 2024 serves as a transition year to help payment apps prepare for the new reporting requirements.
“The US Department of the Treasury are still moving forward on the 2024 rules that came from the Inflation Reduction Act,” said Mark Steber, chief tax information officer for Jackson Hewitt. “Prior to 2024, the earnings threshold was $20,000 and 200 transactions to receive a 1099-K tax document and in 2025 the income threshold earned from a third-party platform will be $600.”
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