This new tax reporting rule should not affect your tax liability. If you earn over $400 in income, you need to report it to the IRS.

The Form 1099-K is meant to report income from payment apps (like Venmo or Paypal), as well as from online marketplaces or gift cards. Third-party payment services send this form to taxpayers who cross the reporting threshold and a copy goes to the IRS, as well.

As tax season kicks off in the United States, the IRS has introduced new regulations that could impact how you file your taxes if your income surpasses the set threshold. These changes particularly affect freelancers and those using digital payment platforms.

If you're a freelancer, business owner or someone who occasionally makes money on the side, you need to know about the new tax reporting requirement for PayPal, Venmo, Cash App and other third-party payment users.