Clark Howard: use of cash apps could impact your taxes

DAYTON — Big payments through apps like Venmo and CashApp can impact your taxes.

Consumer Advisor Clark Howard explains what could happen.

There’s great news for those who receive payments using Venmo, CashApp, Zelle, and PayPal. There’s a new law that was delayed last year and now delayed again that would mean if you got $600 or more on any of those cash apps, you will get what’s known as a 1099 from the IRS and have to report it on your tax return.

If you are not getting that money from any kind of side business, you’re going to have to explain back to the IRS, which can be an administrative nightmare and a pain for the taxpayer.

The IRS knows everybody is mad about this, so they have delayed it again for another year. But consumers must get Congress to fix it because otherwise you are going to get a lot of forms and must deal with them.

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