Q&A of the Week January 4, 2023

Question

Will I have to report income of $600 or more received via third-party payment platforms (Venmo, Zelle, etc.) on my 2022 tax return?

Answer

The IRS recently announced that the reporting of income for third-party payment platforms on Form 1099-K is delayed. Taxpayers DO NOT have to report income of $600 or more on their 2022 income tax return. 

The IRS is delaying this change, which will be in effect for 2023 income tax returns. This will allow the IRS more time to manage the process and provide information and instructions for taxpayers, tax preparers, and software providers. 

Taxpayers DO have to use Form 1099-K to report $20,000 in payments from over 200 transactions.

For more information about the delay: https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k