Popular pay🎃ment apps will start reporting payments of $600 or more to the IRS to comply with a new tax law.

While businesses have been required to report payments of $600 or more for years, this is the first time that online payment🌸 apps have been subject to that requirement. Previously, PayPal and others were required to report gross income exceeding $20,000 per year.

Under the new rule, bar is now lowered to $600. Fortunately, according to , this new rule only applies to payments classified as goods or services. Money sent to friends and family, gifts, reimbursements, and products sold at a loss will not be included.

For true income, however, users will need to be more car🧸eful when filing their taxes, as the 🃏IRS will now have a point of reference.

“For the 2022 tax year, you should consider the amounts shown on your Form 1099-K when calculating gross receipts for your income tax return,” PayPal’s Q&A section says. “The IRS will be able to cross-reference both our report and yours.”