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“If the FBI were watching, I would be very fresh,” 2 Chainz said best! Roommate, it looks like a peer-to-peer (P2P) payment system like Venmo, Paypal, Zelle and CashApp are making changes that may affect everyone.according to NBC NewsAs a result of the COVID-19 Response Act passed in March last year, the U.S. taxation plan tax law has changed in 2022. This means that these P2P payment applications now need to report to the Internal Revenue Service (IRS) of commercial transactions that total more than $600 per year.
Before the change, when individuals had more than 200 business transactions each year with a total value of more than $20,000, the mobile application only needed to notify the IRS. The new changes now stipulate that people with an annual income of more than $600 must submit and provide a 1099K form. Tax reporting changes only apply to commercial charges and services. If you are not sure what this really means, I will break it down. You don’t have to worry about reporting any personal transactions, including charging friends or family members. For example, if you go out to eat and split the bill, don’t worry about reporting the transaction.
In addition, these changes also apply to people who sell goods on sites such as eBay, or those who have a side business and own a website that sells holiday crafts, as long as they accept credit card payments through these apps. PayPal issued a statement regarding this change, stating that both PayPal and Venmo provide customers with a way to mark their peer-to-peer (P2P) transactions as individuals/friends and family members or commodities by selecting the appropriate category for each transaction and service. “
The statement continued, “When users send money to other users to purchase items, such as sofas or concert tickets in a local advertisement list, or when paying for services, users should choose goods and services,” PayPal said. Friends, what do you think of this change?
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