IRS Thanksgiving Stimulus | $600 Payment Tax Rule DELAYED

hey everyone me Kevin here the IRS just

released a new update on the $600 venmo

and PayPal rule a lot of people have

been asking about the details for this

and here's the latest first of all it's

been delayed this is good news for a lot

of folks who were wondering if they were

going to get a $199 K yeah in case you

haven't heard of it yet there's this

thing called the third party T

settlement organization rule it's

basically a fancy way of the IRS saying

we want to tax you when you get paid

anything over $600 through things like

venmo PayPal uh it could be as much as

uh $600 on Etsy for being a seller eBay

Airbnb anything you get paid over $600

for organizations that pay you that

money have to file a

$10.99 K by January 31st of each year

for the prior year so basically if you

got paid say say $2,000 from your buddy

and they were just reimbursements in

aggregate amounts then there's a chance

they could show up as something that

needs to be reported on a 1099 K which

means you have to report it as income on

your taxes and then that means you need

to come up with offsetting expenses

otherwise you're paying taxes on this

sort of stuff it's a disaster now the

critical way to separate liability for

these $600 reporting requirements is

when you're sending or receiving

payments and they're personal payments

make sure they're sent as a personal

payment the goal of this IRS rule is to

basically capture payments that side

hustle people get so for example maybe

you hung christas Christmas lights for

uh you know a bunch of people or you did

yard Duty for somebody or uh you know

you did some electrical work or some

Plumbing work on the side those are the

sort of amounts in excess of $600 when

they get processed as a payment to a

business that the the government is

saying hey we want to capture taxes on

this so we're going to make businesses

uh that uh support these sort of

payments again Airbnb Etsy venmo Paypal

report to the IRS when payments of over

$600 were made to one particular party

that's how they're calculating it it's

going to be based on one particular

party in aggregate now the IRS just came

out just released a statement that they

are actually going to delay this by

about a year uh the way they suggest is

that 2023 will be considered a

transition year which removes the

requirement of reporting transactions

over $600 that were categorized as for

business to the IRS now there is an

exception to that rule any transactions

over I believe it's

$20,000 yeah here it is look at this

originally enacted in 2008 there is

still going to be a requirement for any

transaction that exceeds

$20,000 or or the number of transactions

with one particular party

exceeds 200 so for example if somebody

paid you every single day for

babysitting your children and you paid

them in the four business measure let's

just say theoretically right and you

paid them every single day for 200

transactions that would apply as would

payments over $20,000 more realistic

this 200 transaction count would be a

way to say Hey you had $250 transactions

let's say which is 10 grand you're

selling stuff on Etsy we want taxes on

that 10 grand right that would be the

more realistic way to implement or to

expect that to actually end up being

taxable so there is a way that uh you

could still get reported by Etsy or

Airbnb or otherwise if you have more

than 200 transactions or

20,000 otherwise business payments of

over $600 in a agregate that's in total

to a specific

paye will be reportable in

2024 unless of course they kick the can

down the road again the good news about

this is it basically gives you more time

to separate your personal and business

venmo and PayPal transactions basic

bottom line is as you go into 2024 just

make sure you know when you're sending

somebody a payment as a for business not

only are there usually Chargers

associated with that but you're probably

going to be triggering this 1099 k for

this is also important for those people

who are operating side hustles where

they're regularly getting paid they're

on Etsy they're on Airbnb or otherwise

but for now it's delayed by another year

thanks so much for watching this update

and yeah I lost a bed on my hair with

myself I made a mistake we'll see you

soon Happy Thanksgiving everyone bye