From January 1. 2022, all freelancers, independent contractors, and small business owners who sell various types of products and services will have to follow a new tax rule. As a part of this rule, the IRS will look into their digital payment service accounts, and they’ll need to account for those earnings on their tax returns. All those who accept credit card payments through PayPal, Venmo, Cash App, Zelle, or some other third-party provider, will have to report the income to the IRS.
Up until this new rule was settled, it was up to business owners and freelancers to report all the income they made by selling goods and services to customers, but now this will be under the legislation of the IRS. So, if you receive a minimum of $600 over the year, your payment service will have to…
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