{"id":460598,"date":"2022-06-09T21:14:44","date_gmt":"2022-06-09T18:14:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-irs-wants-in-on-your-venmo\/"},"modified":"2022-06-09T21:14:44","modified_gmt":"2022-06-09T18:14:44","slug":"the-irs-wants-in-on-your-venmo","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-irs-wants-in-on-your-venmo\/","title":{"rendered":"#The IRS wants in on your Venmo"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ffb2bb86ce\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ffb2bb86ce\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-irs-wants-in-on-your-venmo\/#%E2%80%9CThe_IRS_wants_in_on_your_Venmo%E2%80%9D\" >&#8220;The IRS wants in on your Venmo&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CThe_IRS_wants_in_on_your_Venmo%E2%80%9D\"><\/span>&#8220;The IRS wants in on your Venmo&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/venmo-92.jpg?quality=90&amp;strip=all\" \/><\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Side hustlers beware: Any income you make over $600 is now being reported to the Internal Revenue Service by payment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s including eBay, Venmo and Airbnb.<\/p>\n<p>The new law \u2014 which is in effect for the 2022 tax year \u2014 means that payment processors must start keeping track of which users receive more than $600 for payments and services and give that information to the IRS.<\/p>\n<p>It\u2019s a dramatic increase in oversight from years past when annual payments had to exceed $20,000 to warrant gig workers getting slapped with a 1099-K \u2014 the tax form for transactions on payment platforms. <\/p>\n<p>And the complication is already causing  headaches. One nanny told The Post it could change her calculus when it comes to accepting work \u2014 especially on weekends.<\/p>\n<p>\u201cI love being freelance but a big part of why I love it is I can pocket extra money when I decide to work extra hours,\u201d the childcare worker complained. \u201cIf have to pay a bunch of tax on it, that\u2019s wasted labor \u2014 it would make me reconsider working weekends.\u201d<\/p>\n<p>Alex<em> <\/em>Muresianu, a federal analyst at the Tax Foundation, told The Post: \u201cThe administrative burden of figuring out taxes for something like that is such a pain, some people may decide it is just not worth it. And I doubt the IRS is going to be making a lot of revenue on taxing people\u2019s $10,000 side hustle.\u201d <\/p>\n<p>The new regulation has gotten payment platforms up in arms. Etsy and eBay have joined with smaller retailers to form the Coalition for 1099-K Fairness to protect \u201ccasual online sellers and microbusinesses from unfair tax and privacy burdens.\u201d <\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/1099kfairness.org\/about-us\">The group argues <\/a>the new law means, \u201cAmericans who sell only used goods and owe no taxes will now get confusing IRS forms.\u201d <\/p>\n<p>They also note it creates an invasion of privacy since these companies will have to collect <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security numbers from platform users.<\/p>\n<p>The rule won\u2019t apply to people paying back friends for a night on the town or reimbursing  a concert ticket. However, it\u2019s incumbent upon users to indicate whether a payment is for a personal expense like splitting the cost of a dinner or a business expense. <\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>Another point of contention is whether individuals reselling used clothes or electronics should have to pay tax on it. If someone sells an item at a loss, they shouldn\u2019t be forced to pay tax since they didn\u2019t profit from the sale. However, most people don\u2019t keep receipts for years on end to prove they sold it at a loss \u2014 a point which could create difficulty, tax experts add. <\/p>\n<p>\u201cThere is a tradeoff between enforcing the law and imposing a ton of compliance burdens,\u201d Muresianu adds. \u201cIf you\u2019re earning a ton of income on furniture arbitrage, you should be paying taxes \u2026 but is chasing after that marginal side income worth the IRS\u2019s time and energy?\u201d<\/p>\n<p>The IRS is already notoriously understaffed. Adding another level of tax compliance could create even more burden for the agency.<\/p>\n<p>Of course, whether people will try to comply with the law remains to be seen.<\/p>\n<p>Given there are still other forms of payment \u2014 like cash and Zelle \u2014 that are easy to hide from the IRS, some workers may just stop using payment platforms for income.<\/p>\n<p>\u201cIf I can make the description something obscure like paying back for dinner \u2026 how will they regulate it?\u201d one gig worker told The Post. \u201cThe government should be incentivizing people to work, not the opposite,\u201d this person noted.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/06\/09\/the-taxman-cometh-the-irs-wants-in-on-your-venmo\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The IRS wants in on your Venmo&#8221; Side hustlers beware: Any income you make over $600 is now being reported to the Internal Revenue Service by payment apps including eBay, Venmo and Airbnb. The new law \u2014 which is in effect for the 2022 tax year \u2014 means that payment processors must start keeping track&#8230;<\/p>\n","protected":false},"author":1,"featured_media":460599,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/venmo-92.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[76574,130112,71083,46483,102803],"class_list":["post-460598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-paypal","tag-6-9-22","tag-small-business","tag-taxes","tag-venmo"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=460598"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/460599"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=460598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=460598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=460598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}