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Rossen Reports: New tax rule for payment apps

This year’s tax season comes with a new change for payment apps such as Venmo, PayPal, Zelle or Square.

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This year's tax season comes with a new change for payment apps such as Venmo, PayPal, Zelle or Square.

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Those apps will have to start reporting business transactions if they're $600 or more per year. If you have a side hustle like selling goods or services on Etsy — this means you.

Before this change to the tax code was signed into law, mobile payment apps only had to tell the IRS when a person had over 200 commercial transactions that exceeded $20,000 in total value, per year. Now, if someone receives a business payment for $600 or more, the payment app must file a Form 1099-K to report the commercial income that was collected on the app.

Remember, this doesn't apply to other payments, like sending your roommate rent money or splitting the tab at dinner. Those personal transactions will not be taxed.

Financial experts say if you do own a business and collect payments through these apps, check the Q&A pages on their websites. They post about how they're dealing with the new tax change and everything you need to know. You can also visit this FAQ page on the IRS website.