Upcoming Tax Reporting Changes for Businesses and Freelancers

Reported 1 day ago

Recent tax law changes will significantly ease reporting requirements for businesses and freelancers. The updated law reinstates the previous threshold for payment apps like Venmo, requiring them to issue 1099-K forms only after 200 transactions exceeding $20,000. Additionally, the reporting threshold for non-employee compensation will rise from $600 to $2,000 starting in 2026. These changes are expected to decrease paperwork and reduce IRS penalties for businesses but could also lower tax revenue due to less third-party reporting.

Source: YAHOO

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