01/31/2025
If you earn income through digital payment platforms like Venmo, PayPal, Cash App, and Zelle, the IRS is making it clear that your earnings will soon be reported—and you’ll be responsible for paying taxes on them.
Here’s what you need to know:
• Starting in 2024, third-party payment processors will report income if you receive $5,000 or more via Form 1099-K.
• In 2025, the reporting threshold drops to $2,500.
• By 2026, any income over $600 will be reported.
To stay ahead of potential tax liabilities, consult with your tax professional and plan for quarterly estimated tax payments.
Understanding the four key IRS due dates will help you avoid penalties and fees when April 15th arrives. Being proactive ensures you’re compliant and financially prepared.