Cash App and Form 1099-K FAQs

In 2022, Congress made changes to 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. Starting January 1, 2022, the IRS now requires services like Cash for Business to report payments for goods and services on Form 1099-K when those transactions total $600 or more in a year.

Prior to January 1, 2022, the annual Form 1099-K reporting threshold was transactions totaling more than $20,000 and more than 200 business transactions within a calendar year. Unlike this previous threshold, there is no requirement for the number of transactions.

This new $600 reporting requirement does not apply to personal Cash App accounts because these transactions are for personal, non-commercial purposes. If you have a Cash for Business account, check out Tax Reporting for Cash For Business for more information.

Do I need to worry about Form 1099-K?

Form 1099-K is used to report transactions for the sale of goods and/or services made to Cash for Business accounts. If you have a personal Cash App account, you will not receive a Form 1099-K from Cash App, and Cash App will not report any of your personal transactions to the IRS.

Cash for Business customers can check out our Tax Reporting with Cash For Business homepage for more information on Form 1099-K.

What is the difference between Cash App personal accounts vs. Cash for Business Accounts?

Your Cash App account is a personal account for peer-to-peer, non-commercial payments (e.g. splitting lunch you had with a friend).

Cash for Business accounts are designed to help small business owners and entrepreneurs sell their goods and services. They pay a 2.75% processing fee to Cash App for any payments received but pay no fees for Instant Deposits.

You can change your account from personal to Cash for Business in-app. See our Switch to Cash for Business article for steps.

How do I know if my Cash App is a “Cash for Business” account?

If you have a Cash for Business account, your Cash App account profile will have a building-shaped icon. Business Icon

Will I receive a Form 1099-K if I have a Cash App personal account?

No. If you hold a Cash App personal account and send or receive money for dinner, gifts, or from family or friends, you will not be subject to these new reporting requirements and will not receive a Form 1099-K to file with your tax return.

If you buy or sell stock or bitcoin with your app, you may have other tax documents. If so, you can find them in the app by February 15th by tapping on your profile, then Documents. Or from a computer at cash.app/account/settings.

What if I want to receive payments for my business on my Cash App account?

When you sign up for a Cash App personal account, you agree to send or receive funds for personal, non-commercial purposes only. If you sell goods or services and want to be paid through Cash App, you should switch your account to a Cash for Business Account.

You should only process personal payments on a personal account. If you need to accept both personal and business payments, you should create separate Cash App accounts for each account type.

Check out this article for steps to switch your account to a Cash for Business account. For more information about Cash for Business accounts, see our Cash for Business homepage here.

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.