Why you won't get a tax form from PayPal (and why it matters)
1:11
MSNKOAA News 5 Colorado Springs, CO
Why you won't get a tax form from PayPal (and why it matters)
The reporting threshold for 1099-K forms has been raised from $5,000 to $20,000, meaning fewer people will receive one. A tax expert advises that this makes it even more important for people with side hustles to track their own income, as it's still taxable.
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If you’ve ever used Venmo, Cash App, or PayPal to split dinner, pay rent, or send money to a friend, this matters. Payment apps can issue a 1099-K if your transactions hit certain thresholds. That form gets sent to the IRS and shows payments received under your name. The problem is, not all of those payments are actual income. Some are just reimbursements. Before tax season surprises you, log in to IRS.gov and pull your tax transcript. It shows what’s been reported on your behalf, including W-2s
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If you’ve ever used Venmo, Cash App, or PayPal to split dinner, pay rent, or send money to a friend, this matters. Payment apps can issue a 1099-K if your transactions hit certain thresholds. That form gets sent to the IRS and shows payments received under your name. The problem is, not all of those payments are actual income. Some are just reimbursements. Before tax season surprises you, log in to IRS.gov and pull your tax transcript. It shows what’s been reported on your behalf, including W-2s
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