A tax code change introduced this year may result in cash app users filing additional taxes in 2023.
Prior to the change, the app would only be required to issue the form if a user had more than 200 business transactions totaling at least $20,000 for the year.will face additional tax forms and potentially pay higher taxes. Thenew tax policy was implemented as part of the American Rescue Plan and it is projected to raise roughly $8 billion in added tax revenue over ten years.
The changes may create confusion among taxpayers running small businesses who mix personal and business transactions on the payment apps, meaning the 1099-K forms can reflect a higher income than they actually earned this year. Those who sell used items could face higher taxes if they cannot locate old receipts showing how much the item depreciated since they purchased it.Kick back and unwind with an audiobook.
Unwind with 12 credits to spend on any audiobook, and free access to the Premium Plus selections, no credits needed.Last week, Sen. Rick Scott proposed legislation to block the IRS tax expansion to reverse the increase in financial transactions reported on the payment apps. “The Biden administration is also changing I.R.S. standards to begin tracking every financial transaction Americans make in excess of $600, including on CashApp, Venmo, and PayPal,” Scott told The Times.
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