Proposal to Raise Venmo and PayPal Reporting Threshold
Two U.S. Senators will propose an amendment to the $1.7 trillion spending package that would change the tax-reporting requirements for Venmo, PayPal and other similar apps.
Before 2022, taxpayers received 1099-Ks when they had more than 200 transactions worth an aggregate above $20,000. But the American Rescue Plan Act of 2021 lowered the threshold to just $600. So just a single transaction of more than $600 may trigger a 1099-K.
Sen. Bill Hagerty, R-Tenn., is expected to file the amendment, with Sen. Joe Manchin, D-West Virginia as the co-sponsor. The amendment will request that the threshold that triggers a reporting requirement be raised from $600 to $10,000, Manchin told CNBC.