IRS News For People That Used PayPal, Venmo or Cash App in 2025?

If you used popular payment apps like PayPal, Venmo or Cash App in 2025, here’s a tax rule you should know before filing your taxes. These apps help people send and receive money, but the IRS has rules about when that money must be reported.

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The rule is about a special tax form called Form 1099-K. Payment apps and online marketplaces send a 1099-K form to the IRS and to users in certain situations. That form shows payments people received for sales or services on those platforms.

For the 2025 tax year, the IRS reverted the reporting rule back to an older standard. Most people will receive a 1099-K only if they received more than $20,000 in payments and had more than 200 transactions in one year through a single app like PayPal or Venmo.

Source: Cleveland.com