Have you seen that latest headlines that the IRS is now tracking PayPal and Venmo payments which exceed $600? Like everything, there is some truth and some fiction to the headlines. If you own your own business or have a side hustle and get paid through apps like PayPal, Zelle, Cash App or Venmo, earnings over $600 will now be reported to the IRS. A provision from the 2021 American Rescue Plan directs third-party payment processors to report transactions received for goods or services totaling over $600 per year to the IRS. Prior to this legislation, a third-party payment platform would only report to the tax agency if a user had more than 200 commercial transactions and made more than $20,000 in payments over the course of a year. The key thing to know right now is that it doesn't apply to your 2021 tax return, which you'll file this tax season. However, it will apply to the earnings you make throughout 2022, which you'll report when you file in 2023.