New York
Do you owe taxes for using a cash payment app?
Rochester, New York — Many people are asking the question – do I owe taxes on money received through the app, as cash payment apps like Venmo and Zelle become increasingly popular.
CPA Garrett Wagner has the answer.
“One of the tax law changes from 2021 lowered the threshold from $20,000 to $600,” said Wagner. “What got lost is that they are only tracking for businesses – not for everybody else who uses a cash payment app. Only business transactions are getting tracked and it’s only who gets the money. They’re not tracking who sends it either.”
According to Wagner, the IRS will not track or monitor person-to-person transactions – such as friends splitting a dinner bill.
There is the possibility of a person incorrectly being coded as a business.
In that case, Wagner said don’t panic. “So we want to take two steps – first, contact whatever cash payment app sent you that little letter – it should be a 1099 – and let them know, hey – I’m not a business because most likely you checked the wrong box. You’re doing that quick dinner and you’re trying to get going and you hit the wrong box. Second, even if they don’t fix it in time your trusted CPA can help you avoid any tax issues on your personal return.”
-
Local News2 weeks ago
Friends and family assemble to honor the victim of the Driving Park Bridge hit-and-run
-
New York2 weeks ago
Due to the bird flu, New York has added new, temporary regulations for the import of dairy cattle
-
Local News6 days ago
The people of Rochester come together to honor Reverend Iris J. Banister’s life and legacy
-
Local News1 week ago
Former Rochester spa owner charged with leveraging company to engage in prostitution around WNY
-
Local News2 weeks ago
The Rochester Underground Railroad byway project’s first public meeting
-
Local News2 weeks ago
This weekend, there will be cleanup events in the Rochester region
-
Local News2 weeks ago
The first state-licensed cannabis shop opens in the City of Rochester
-
Local News1 week ago
Mayor outraged after judge releases suspect in city security guard’s baseball bat beating