Will you pay taxes on the money you receive from Zelle, Paypal, Cash App? This answers the IRS in California

Adam Smith
Adam Smith
3 Min Read

LOS ANGELES, California .- The Internal Revenue Service (IRS) in California warns of changes in tax returns, with Social Security or ITIN, starting with the 2023 season. The modification will include income from Zelle, Paypal, Cash App and even a gift card.

“Following the implementation of the American Rescue Plan law, the deposit threshold was lowered significantly and the transaction limit was removed,” said Octavio Saenz, spokesman for the IRS.

What are the changes in the returns to the IRS with income from payment applications?

Previously, these income statements applied to people with more than 200 transactions per year and if total income was more than $200,000.

“The disclosure threshold has been lowered, ” Saenz said. Explaining that now people who receive payments for applications or gift cards for more than 600 dollars , regardless of transaction limits.

Who do these IRS changes affect?

The new collection rule will affect people who work independently. That is, people who clean houses, wash cars at home, offer home tutoring and even those who receive gift cards for $600 or more must declare.

Sáenz clarified that the new law will be in force as of the next tax season.

You should not be surprised if you receive a form, 1099K the form used to report income from value cards such as gifts and digital applications to the IRS.

The IRS spokesman emphasized that the taxable contributions did not change, what was changed was the declaration threshold.

Inflation stimulus: They reveal the last payment date, what to do if you do not receive the money or have problems activating your card

The California Tax Office reported that millions of residents in the state have already received inflation stimulus checks in direct deposits and debit cards. And recently the shipping date was reported for a group that previously did not have a specific date.Credit: Eric Gay/AP
Those who did not receive the Golden Stimulus Check (GSS), whose last name begins with the letter M to Z will receive a debit card by mail between December 4 and December 10, 2022.
All taxpayers who received the golden stimulus check in 2020 and 2021 by direct deposit should have already received their money for inflation in the same way between October 7-25, 2022 .Credit: Unsplash

Hi, I'm Adam and I'm passionate about writing engaging content for online blogs and publications. I specialize in topics like technology, travel and food.
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