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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.
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.
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.
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