U.S. Senator Bill Hagerty (R-TN), listens to testimony during the Senate Banking, Housing and Urban Affairs Hearing to examine the President’s Working Group on Financial Markets report on Stablecoins in Washington, February 15, 2022.
Bill O’Leary | Pool | Reuters
Sen. Bill Hagerty, R-Tenn., will file an amendment to the $1.7 trillion spending package, to increase the threshold for Form 1099-K, applying to transfers from third-party payment networks including Venmo and PayPal.
Sen. Joe Manchin, D-W.Va., told CNBC the amendment would increase the payment threshold to $10,000 from $600 for the 2022 tax season. He is the lead co-sponsor.
Without the change, taxpayers will receive Form 1099-K in early 2023, which reports income to the IRS, for business payments over $600.
Before 2022, taxpayers received 1099-Ks with more than 200 transactions worth an aggregate above $20,000. But the American Rescue Plan Act of 2021 dropped the threshold to just $600. Currently, even a single transaction over $600 may trigger the form.
“This is the best relief we can get for people,” Manchin said, referencing the $10,000 threshold as “the best way to approach it.”
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Image and article originally from www.cnbc.com. Read the original article here.