Q&A of the Week January 12, 2022

Answer:

If you get paid through a digital app (PayPal, Venmo, Zelle, CashApp), the American Rescue Plan directs third-party processors to report payments of over $600 per year, starting January 1, 2022.

It is a reporting change to make sure that all income is reported. If you are already reporting the income you receive through a digital app, you will not be impacted.

This does not apply to your 2021 tax return, but it will apply to your 2022 tax return.

Some payment apps may request tax information including your EIN, TIN, or SSN.