- 5,260
- 3,473
F&F transactions will be more important in 2024. For 2024, $5,000 will be the trigger for a payment app to send a 1099-K. F&F is excluded:
"Will the IRS tax money sent to family or friends?
Rumors have circulated that the IRS was cracking down on money sent to family and friends through third-party payment apps, but that isn't true. Personal transactions involving gifts, favors or reimbursements are not considered taxable."
IRS Change: Here's What PayPal, Venmo and Cash App Users Need to Know About Their 2023 Taxes
For 2025 the threshold/trigger will be lowered to the $500 figure that was to have gone into effect for 2023. 2023 and 2024 were then decided to be transitional years.
"Will the IRS tax money sent to family or friends?
Rumors have circulated that the IRS was cracking down on money sent to family and friends through third-party payment apps, but that isn't true. Personal transactions involving gifts, favors or reimbursements are not considered taxable."
IRS Change: Here's What PayPal, Venmo and Cash App Users Need to Know About Their 2023 Taxes
For 2025 the threshold/trigger will be lowered to the $500 figure that was to have gone into effect for 2023. 2023 and 2024 were then decided to be transitional years.