If you receive $600 or more payments for goods and services through a third-party payment network, such as Venmo, or CashApp, these payments will now be reported to the IRS. Zelle will not be affected by this.
Beginning Jan. 1, 2022, third-party payment network providers will be required to send users a Form 1099-K, Payment Card, and Third Party Network Transactions for transactions made during the 2022 tax year by mail or electronically. The new tax reporting requirement will impact 2022 tax returns filed in 2023.
The new rule is a result of the American Rescue Plan. The $1.9 trillion stimulus package was signed into law in March by President Joe Biden, which changed tax reporting requirements for third-party payment networks.
