Popular payme𝔉nt apps will start reporting payments of $600 or more to the IRS to c🐻omply with a new tax law.

While businesses have been required to report payments of $600 or more for years, this is the first time t𓆏hat online payment apps have been subject to that requirement. Previously, PayPal and others were required to report gross income exceeding $20,000 per year.

Under the new rule, bar is now lowered to $600. Fortunately, according to , this new rule only applies to payments classified as goods or services. Money sent to friends and family, gifts, reimbursements, and products sold at a loss will not be included.

For true income, however, users will need to be more ca꧒reful when filing their taxes, as𒊎 the IRS will now have a point of reference.

“For the 2022 tax year, you should consider the amounts shown on your Form 1099-K when calculating gross receipts for your income tax return,” PayPal’s Q&A section says. “The IRS will be able to cross-reference both our report and yours.”