Some social media users have criticized the Biden administration, Internal Revenue Service and the U.S. Department of Treasury, claiming a new tax will be placed on people who use cash apps to process transactions. That is because a 1099-K form will be sent out to app users who receive more than $600 in total transactions, beginning in 2022.
This Facebook post, with more than 1,200 shares, was flagged by Facebook as false information.
VERIFY viewer Tina asked: “Next year will I be sent a 1099 for using money apps like Venmo or Zelle after $600 worth of money has been sent to me?”
Yes, you will likely receive a 1099-K form if you receive more than $600 on an app. But that doesn’t mean you owe any additional taxes. This only applies for income that would normally be reported to the IRS anyway. Current tax law requires anyone to pay taxes on income over $600, regardless of where it comes from.
Do you have a complaint about PayPal or Venmo, such as locked accounts or funds seized for unspecified Acceptable Use Policy violations? Take your claim to FairShake, the consumer advocacy service.