Don’t Worry about Form 1099-K…. Yet

You may have heard about a new reporting requirement for payments processed by digital payment companies like Venmo, CashApp or Paypal. According to a provision in the American Rescue Plan, third party payment companies were going to be required to report transactions to the IRS using Form 1099-K for business account holders who received at least $600 in transactions in 2022—up from a threshold of $20,000 in 2021.

Thanks to a last-minute change in the law, implementation of this new rule won't go into effect until 2023, which means you won't have to worry about reporting income from a 1099-K form for the 2022 tax year. However, with or without a 1099-K, you still have to report income from self-employment, gig work, sales of goods or other business transactions on your tax return.