Tax Reporting for Cash App and Form 1099-K FAQs
Congress changed the Internal Revenue Service’s (IRS) reporting requirements for the Form 1099-K. You have questions, we have answers.
What were the recent changes to the IRS reporting requirements?
The American Rescue Plan Act of 2021 changed the minimum reporting threshold for certain transactions. The IRS planned to require services like Cash App for Business to report payments for goods and services on Form 1099-K when those transactions total $600 or more in a year, starting January 2022.
On November 21, 2023, the IRS announced a one-year delay. If you have a business account, you can find more details in Form 1099-K Reporting.
These reporting requirements do not apply to personal Cash App accounts because these transactions are for personal, non-commercial purposes. If you have a Cash App for Business account, check out Tax Reporting for Cash App For Business for more information.
What is the difference between Cash App personal accounts and Cash App for Business Accounts?
Your Cash App account is for sending, receiving, and spending your personal funds for peer-to-peer, non-commercial payments (e.g. splitting lunch you had with a friend).
Cash App for Business accounts are designed to help small business owners and entrepreneurs accept payments for goods and services. We automatically deduct a fee of 2.75% from each payment accepted with a business account, and we issue a Form 1099-K as applicable.
How do I know if my Cash App is a “Cash App for Business” account?
If you have a Cash App for Business account, your Cash App account profile will have a green business badge.
Will I receive a Form 1099-K if I have a Cash App personal account?
No. If you have a personal account you will not receive a Form 1099-K.
If you buy or sell stock or bitcoin on Cash App, you may receive other tax documents. Read more here.
What if I want to receive payments for my business on my Cash App account?
Remember that business accounts are only for selling goods and services. When you sign up for a Cash App, you agree to use your personal account to send and receive funds for personal, non-commercial purposes only. If you want to sell goods or services and accept payments via Cash App, you can switch your account to a Cash App for Business Account.
The information contained in these Help Center articles are a support guide and do not constitute tax advice. If you require tax advice, please contact a tax professional or CPA. Cash App cannot provide you with specific tax advice.