There are a lot of rumors flying around that the IRS will soon come after payments you make and receive on apps like Venmo and PayPal over $600, first by sending you a 1099 and then levying additional taxes on those payments.
The fact that @JoeBiden is planning on taxing money over $600 that comes into PayPal, CashApp, Venmo & etc. is another bs way to tax the poor on money they barely have instead of the rich on money they have in excessive amounts. Disgusting.
— Gabby 💕 | 2-2 ⚜️ (@xogabbyelle) September 27, 2021
Though it is true you will receive 1099s, you probably won't have additional taxes that you must pay on these payments.
One Facebook post regarding the rumor, however, was flagged as false because the idea that we will all be taxed now for cash app payments over $600 is thankfully false.
According to the website Verify, while you will likely receive a 1099-K form if you receive more than $600 on an app, the taxes only apply for income that would "normally be reported to the IRS anyway."
Yes, you will likely receive a 1099-K form if you receive more than $600 on an app. But that doesn't mean you owe any additional taxes. This only applies for income that would normally be reported to the IRS anyway.https://t.co/z38yCiq2Kc
— VERIFY (@VerifyThis) October 2, 2021
David Super, a tax law professor at Georgetown University, told the site, "If one is receiving money from a friend or family member as a gift or as a reimbursement, the effect is likely to be the same: no countable income. If, on the other hand, one is using the cash app to receive the proceeds of a business, those business receipts would need to be reported as such."
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