- Americans have been bracing for a new reporting change for third-party payment networks like Venmo or PayPal.
- Sens. Bill Hagerty, R-Tenn., and Joe Manchin, D-W.Va., will propose to raise the tax reporting threshold to $10,000 from $600 for 2022.
Sen. Bill Hagerty, R-Tenn., will file an amendment to the $1.7 trillion spending package, to increase the threshold for Form 1099-K, according to Sen. Joe Manchin, D-W.Va., the proposal’s lead co-sponsor. The tax reporting threshold applies to transfers using third-party payment networks including Venmo and PayPal.
Manchin told CNBC the amendment would increase the payment threshold to $10,000 from $600 for the 2022 tax season.
Before 2022, taxpayers received 1099-Ks with more than 200 transactions worth an aggregate above $20,000. But the American Rescue Plan Act of 2021 dropped the threshold to just $600. Currently, even a single transaction over $600 may trigger the form.
“This is the best relief we can get for people,” Manchin said, referencing the $10,000 threshold as “the best way to approach it.”
He believes that raising the threshold to $10,000 has broader support than delaying implementation of the new rule.
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