New tax rule regarding business transactions on payment apps

CNN– If you get paid for goods and services on Venmo, Cash App, or PayPal, you might be affected by a new tax rule.

Payment app providers must now issue users a 1099 K form, if they make more than $600 through business transactions during the year. Previously, the form was only issued if a user had more than 200 business transactions in a year, totaling at least $20,000.

This applies to any payment for a good or service, including tips.