Cash App Payments: New IRS Tax Rule Lowers Minimum Reporting Threshold From $20,000 To $600

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The new IRS tax rule lowered the minimum reporting threshold on Cash App payments from $20,000 to $600.

Cash App payments
The new IRS tax rule lowered the minimum reporting threshold on Cash App payments from $20,000 to $600. (Photo: Patriot Software)

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.

READ ALSO: You Could Have $900 To The IRS, But There’s Not Much Time Left To File A Claim

Lower Minimum Reporting Threshold for Cash App Payments Received Mixed Reactions

Individuals affected by the lower minimum reporting threshold for Cash App payments expressed mixed reactions about the new IRS tax rule, KTVZ reported.

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.

The new IRS tax rule will be implemented in January next year so that the affected individuals and businesses have enough time to prepare for the massive changes in Cash App payments.

READ ALSO: Texas Sets Record In Returning Unclaimed Property To Owners, Paying Out $309 Million In FY 2022

 

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