Overview

Click to expand overview
Two U.S. Senators will propose an amendment to the $1.7 trillion spending package that would change the tax-reporting requirements for Venmo, PayPal and other similar apps. Before In December 2025, we covered the IRS’s decision to postpone the $600 reporting threshold in response to widespread concerns that taxpayers would erroneously Americans have been bracing for a new reporting change for third-party payment networks like Venmo or PayPal. Sens. Bill Hagerty, R-Tenn, and Joe Manchin, D Two US Senators have proposed an increase in the tax threshold for third-party payment networks. The proposal would increase the threshold for platforms like Venmo tax bill includes an increase to the reporting threshold for online payment platforms like Venmo, PayPal, and Etsy. The bill, if adopted, would return the Form K Sens. Joe Manchin (D-W.Va.) and Bill Hagerty (R-Tenn.) have proposed an amendment to the $1.7 billion funding package, to raise the $600 reporting requirement for Democrats in the 2025 American Rescue Plan Act lowered the threshold to $600 for when e-commerce companies must send a K form to users and the IRS. The Millions of gig workers and sellers that use payment networks like PayPal and Venmo remain on track to receive a K tax form in 2025 for the first time, after WASHINGTON, D.C.CNBC is reporting that two U.S. Senators will propose an amendment to the $1.7 trillion spending package that would change the tax

US Senators Propose Increase in Venmo, PayPal, Cash App Tax Reporting Threshold to $10,000

Are you a Venmo, PayPal, or Cash App user concerned about new tax reporting requirements? You\'re not alone! Millions of gig workers and sellers that use payment networks like PayPal and Venmo remain on track to receive a K tax form in 2025 for the first time. Fortunately, there\'s potential relief on the horizon. Two US Senators have proposed an increase in the tax threshold for third-party payment networks, aiming to ease the burden on casual users and small businesses.

The Proposed Change: Raising the Threshold

Sens. Joe Manchin (D-W.Va.) and Bill Hagerty (R-Tenn.) have proposed an amendment to the $1.7 billion funding package, seeking to raise the $600 reporting requirement established by Democrats in the 2025 American Rescue Plan Act. CNBC is reporting that two U.S. Senators will propose an amendment to the $1.7 trillion spending package that would change the tax-reporting requirements for Venmo, PayPal and other similar apps. Currently, the IRS requires payment platforms like Venmo, PayPal, and Cash App to report gross payments exceeding $600 to the IRS. The proposal would increase the threshold for platforms like Venmo. This means the IRS would only require reporting transactions for users receiving over $10,000 in payments annually and completing over 200 transactions. The tax bill includes an increase to the reporting threshold for online payment platforms like Venmo, PayPal, and Etsy. The bill, if adopted, would return the Form K.

Why the Change is Needed

Americans have been bracing for a new reporting change for third-party payment networks like Venmo or PayPal. The current $600 threshold has caused widespread concern. Before In December 2025, we covered the IRS’s decision to postpone the $600 reporting threshold in response to widespread concerns that taxpayers would erroneously. Many worry about receiving a Form 1099-K for everyday transactions, such as splitting bills with friends or selling used items online. The lowered threshold to $600 for when e-commerce companies must send a K form to users and the IRS. Sens. Bill Hagerty, R-Tenn, and Joe Manchin, D. Hagerty and Manchin recognize that this low threshold disproportionately impacts small businesses and individuals, creating unnecessary confusion and compliance burdens.

What Happens Next?

It\'s important to note that this is still a proposal. While there is bipartisan support, the amendment\'s passage is not guaranteed. We\'ll continue to monitor the situation and provide updates as they become available. Keep checking back for the latest information on the potential increase in the Venmo, PayPal, and Cash App tax reporting threshold.

Top Sources

Related Articles