How The Laws For Payments Are Changing in 2022

It now requires payment apps to report such transactions if they total more than $600 a year.

If you use PayPal or Venmo for business transactions, the IRS might be looking more closely at your accounts. It now requires payment apps to report such transactions if they total more than $600 a year. Business transactions include payments for goods and services. You’ve always been required to pay tax on them. Now the IRS might know if you don’t. The change is part of the American Rescue Plan, and it’s designed to crack down on unpaid taxes. It doesn’t affect reimbursements among family and friends. So, don’t worry if you use the apps to, say, split a pizza or share a cab.

However, if you were to rely on these apps for a side-hustle like photography shoots, video shoots, modeling, or DJing, this would effect you.

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