If you receive income through social payment apps (Venmo, Cashapp, etc.), you may be in for a surprise this upcoming tax season.

CHANGES

• Beginning this year, taxpayers must report to the IRS transactions of $600 or more that are received through payment apps like Venmo, PayPal, and Cash App. 
• Third-party payment processors will now be required to report a user’s business transactions to the IRS if they exceed $600 for the year. 

EXCLUSIONS

• The new rule only applies to payments received for goods and services transactions.
• Using Venmo or PayPal to send a loved one a gift, pay your roommate rent or reimburse a friend for dinner will be excluded.
• Also excluded is anyone who receives money from selling a personal item at a loss; for example, if you purchased a couch for $300 and sold it for $250, the amount is not taxable. 

Call our office if you have questions regarding how these new tax rules might affect you. (402) 932-8815.

Sincerely,

W.E. Stevens PC