The new IRS tax rule lowered the minimum reporting threshold on Cash App payments from $20,000 to $600.
New IRS Tax Rule Reduces Minimum Reporting Threshold for Cash App Payments
The new IRS tax rule aims to reduce the minimum reporting threshold for Cash App payments from the previous $20,000 minimum to $600 for every transaction.
According to the new IRS tax rule, individuals, especially business owners, who will exceed the $600 minimum in transactions will receive an IRS Form 1099-K from Cash App payments, such as Paypal and Venmo.
The IRS tax rule will only be applicable to transactions of goods and other services through Cash App payments and will not include transactions from selling a personal item at a cost lower than the cost they purchased the item.
Lower Minimum Reporting Threshold for Cash App Payments Received Mixed Reactions
With the changes in reporting thresholds, several small businesses and individuals making money online or using digital platforms and depending on Cash App payments for their incomes will be greatly affected.