859-746-0215 (Office) 859-630-3224 (Susan's Cell) Susan@BoschTaxServices.com
859-746-0215 (Office) 859-630-3224 (Susan's Cell) Susan@BoschTaxServices.com
Will Venmo, Cash App and Zelle Users Have to Pay a New Tax?
For Venmo, Cash App and other users, this may sound like a new tax—but it’s merely a tax reporting change to the existing tax law.
Form 1099-K is a tax form sent to users that may include both taxable and nontaxable income sources. A taxable source of income is included in your income, such as wages, rents, tips, and retirement income. Whereas a nontaxable source is excluded from your income and you will not need to report on your tax return.
Some examples of nontaxable income are:
Also, if you receive money from selling a personal item at a loss, you are not required to report the amount on your tax return. For example, if you purchased a dress for $100 and sold it for $50, the amount is not taxable.
Here is the latest issuance from the IRS: