December 12, 2025
Beginning with the 2025 filing year, the IRS will fully implement the revised Form 1099-K reporting threshold for third-party payment platforms (Cash App, Venmo, PayPal, Stripe).
The reporting threshold drops from $20,000 & 200 transactions to $5,000 total, regardless of the number of transactions.
Personal payments are not taxable, but taxpayers must be prepared to separate business transactions from personal transfers if questioned.
Apps will provide users with improved digital tools to categorize payments.
Who Is Affected
Small business owners
Freelancers and independent contractors
Individuals flipping items online (eBay, Facebook Marketplace, etc.)
Anyone receiving payments labeled as “goods & services”
Best Practices
Keep separate accounts for business vs. personal use.
Maintain records for sales, inventory, and business expenses.
Do not ignore a 1099-K the IRS receives a copy automatically.
Bottom line: Digital payment tracking is tightening, and taxpayers must stay ahead of documentation requirements.
