Remember those third party payments on your taxes for 2022

Published: Jan. 27, 2022 at 9:45 PM CST
Email This Link
Share on Pinterest
Share on LinkedIn

QUINCY (WGEM) - Tax laws on third party payment apps might not be changing, but the reporting requirements are for the 2022 tax year.

Liberty Tax Service office supervisor Mark Pegler said you must now include any sales of products or services, over $600, through cash apps, like Venmo or PayPal, on your tax returns.

While Pegler said the cash app might already keep records and send them to the IRS, it’s still important to keep track of all sales and receipts, and make sure the third party payment app you are using is accounting for the payments.

“You’re responsible to make sure that you are keeping track of how much money you were paid, what you were paid for, when you were paid that money, and who paid it to you, OK?” Pegler said. “And then, of course, you also have any expenses related to this income. So, if you bought different items to make it possible to have this sale,” Pegler said.

Pegler adds that you will also want to to keep track of non-business transactions so you do not include them on your tax form.

Copyright 2022 WGEM. All rights reserved.