Did You Make $5,000 or More via PayPal, Venmo or Cash App? Expect a 1099-K Tax Form

After back-to-back delays, the IRS will move forward with a new tax-reporting rule for freelancers who are paid through third-party apps. If you made $5,000 or more through PayPal, Venmo, Cash App or a similar platform, the IRS will now require these companies to issue tax form 1099-K detailing your earnings.

This isn’t a new tax rule; it’s a tax reporting change. If you earn freelance or self-employment income, you should already be reporting and paying taxes on your total earnings, even if you don’t receive a 1099. The IRS is simply switching the reporting requirement to payment apps so it can keep tabs on transactions that might otherwise go unreported.

This story is part of Taxes 2025, CNET’s coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.

“The taxation and tax treatment requirements for taxpayers has not changed,” said Mark Steber, chief tax information officer for Jackson Hewitt. “This taxable income has always been considered by the IRS to be taxable and should be reported on a tax return.”