Learn about tax changes for business accounts

If you have or had a business account with Cash App or other payment apps and you receive more than $5,000 in 2024, the IRS requires those transactions to be reported on a Form 1099-K.

This form reports the gross amount of payment transactions from credit cards, payment apps, and other platforms that manage payments between two parties.

For the 2024 tax year, if you have a business account and receive more than $5,000 in 2024, you’ll receive a Form 1099-K by January 31, 2025. You’ll be able to view and download your tax form and transaction summary in the app from the Documents section within Settings.

If you have a personal Cash App account, you won’t get a Form 1099-K from us. Note that if you previously had a Cash App Business account and received more than $5,000, and you then switched that account to a personal account, you will receive a Form 1099-K.

If your state has lower reporting requirements, then Cash App may report amounts below the federal threshold to meet those requirements. Review the list on this page to see if your state has a lower threshold.

If you switched from a personal account to a business account, you'll see a green briefcase icon next to your name on your profile. You can contact support if you’re still unsure.

In 2021, Congress changed the IRS rules for business accounts through the American Rescue Plan Act. The IRS requires Cash App and other payment apps to report payments for goods and services on Form 1099-K.

The reporting threshold for Form 1099-K was set to change to $600 for tax year 2024, but on November 26, 2024, the IRS announced a further delay on implementing that change and set a $5,000 annual reporting threshold for tax year 2024.

For the 2024 tax year, Cash App will report transactions on a Form 1099-K when the amount of total business payments is more than $5,000 within the calendar year.

If you have or had a business account with Cash App or other payment apps and you receive more than $5,000 in 2024, the IRS requires those transactions to be reported on a Form 1099-K. Cash App is required to report the same information to the IRS.

You should also keep in mind that not all payments that Cash App is required to report on a Form 1099-K are necessarily payments that must be reported on your income tax return. For example, if you used your business account to receive both business and personal payments, those personal payments (such as gifts, reimbursements for cab rides or dinners, etc.) may not be reportable income. Please note that Cash App is not permitted to provide you with tax advice regarding whether particular payments are reportable income.

Even if you get a Form 1099-K, it doesn’t always mean that you’ll end up owing money on your taxes—it’s only one part of your tax return. If you’re a sole proprietor or an individual working for yourself, while Cash App can’t provide tax advice, we can still help you figure out how your Form 1099-K fits into your tax return.

Once you start receiving tax forms for the year, you can estimate your refund with Cash App Taxes in minutes. You’ll have a better idea of how your return will look, and Cash App Taxes makes filing 100% free from start to finish when you’re ready to file.

No, business accounts are for accepting payments for goods and services. Keep personal payments separate from your business account since these may be reported to the IRS as taxable income.

If you’d like to use Cash App for both personal and business payments, just be sure to use a personal account for any personal transactions. You can use an existing personal account or create a new one.

If you switched your account to a business account by mistake or no longer use your account to sell goods and services, you can create a separate personal account or use an existing personal account instead.

Remember that business accounts are only for selling goods and services. If you used your business account for personal payments and receive a Form 1099-K, you may still be able to include adjustments on your tax return to reduce your taxable income. Refer to IRS Fact Sheet 2024-03 or IRS Form 1040 Instructions for more information.

The IRS has emphasized in its news release and in updated FAQs that personal payments received through payment applications from friends and relatives are not taxable. For example, if you used your business account to receive both business and personal payments, many of those personal payments (such as gifts, reimbursements for cab rides or dinners, etc.) may not be reportable income. Please note that Cash App is not permitted to provide you with tax advice regarding whether particular payments are reportable income.

Your Form 1099-K and any other relevant tax information may be shared with a tax advisor to consider any appropriate adjustments for nontaxable income on your tax return. If you use an electronic tax preparation service, follow the prompts in the application to accurately report your income.