The New 1099-K “Venmo Bill” — What Just Changed?

Congress recently passed what many are calling the “Venmo bill,” and it directly affects how payment apps like Venmo, PayPal, Cash App, and Stripe report income to the IRS.

For the last couple of years, there’s been confusion around whether small casual sellers would start receiving a Form 1099-K for as little as $600 in total payments. That lower threshold was supposed to kick in, but it’s now been rolled back.

What’s the New Rule?

Beginning with the 2025 tax year, the reporting threshold returns to what it used to be:

• More than $20,000 in total payments and

• More than 200 transactions in a year

So if you occasionally sell used items, take the occasional Venmo payment, or side-hustle lightly, you likely will not receive a 1099-K unless your volume is high enough.

What This Does NOT Change

This does not mean income is tax-free.
If you make money — even without a form — it may still be taxable. It simply means many casual sellers won’t get surprise tax forms in the mail anymore.

What You Should Do

• Keep business and personal payments separate

• Track your sales and expenses if you’re running any kind of business activity

• If you do receive a 1099-K, compare it to your own records to confirm accuracy

Bottom Line

This update brings relief to casual payment app users and part-time sellers who were concerned about receiving tax forms for small transactions. But if you’re running a business, keeping clean records is still essential.