TAX TIP Regarding 1099-K Changes (Venmo, Paypal, Square, Zelle and any other cash app)

A lot more people will have to file a 1099-K in 2024, especially those who own a small business or have a side hustle.

Here’s how it’ll break down: You’ll receive a 1099-K form during tax season 2024 if you accept payments for goods or services over a third-party network (think Venmo, PayPal, Stripe, Square, Zelle and Cash App) that are more than $600, even if it’s just one transaction over $600

And be careful—with every new change, there’s bound to be hiccups. Remember, the IRS doesn’t tax personal gifts from friends or family or reimbursements for personal expenses. So, if you receive a 1099-K by mistake, you might want to cover your bases by contacting whichever third-party network sent it to you.