Policies & IssuesFeb 01, 2022
OSHA Withdraws ‘Vaccine or Testing’ MandatePolicies & IssuesFeb 02, 2022
Jewelers Using Payment Apps Should Know This New Tax Rule
For tax year 2022, the IRS has substantially lowered the threshold for receiving a 1099-K for business transactions made via payment apps.
A new tax reporting rule requires payment app providers to issue a 1099-K if business transactions total more than $600 per year.
New York—Jewelers, designers and service providers using payment apps like Venmo or PayPal should make note of a recent change to a tax reporting rule.
A new IRS tax reporting rule, effective as of Jan. 1, requires payment app providers to issue users and the IRS a form 1099-K if the user’s business transactions total more than $600 per year.
Previously, payment app providers would need to send a 1099-K only if a user had more than 200 business transactions in a year that totaled at least $20,000.
A business transaction means any payment, including tips, for goods and services.
The rule applies to purchases made via a payment app both in store and online, like through Instagram, eBay, Etsy, or any other selling platform.
The rule does not apply to personal transactions, like splitting dinner with a friend or sending birthday money.
App users won’t pay any additional taxes for purchasing goods or services.
Related stories will be right here …
A new IRS tax reporting rule, effective as of Jan. 1, requires payment app providers to issue users and the IRS a form 1099-K if the user’s business transactions total more than $600 per year.
Previously, payment app providers would need to send a 1099-K only if a user had more than 200 business transactions in a year that totaled at least $20,000.
A business transaction means any payment, including tips, for goods and services.
The rule applies to purchases made via a payment app both in store and online, like through Instagram, eBay, Etsy, or any other selling platform.
The rule does not apply to personal transactions, like splitting dinner with a friend or sending birthday money.
App users won’t pay any additional taxes for purchasing goods or services.
The change was signed into law last year as part of the American Rescue Plan, the $1.9 trillion stimulus bill passed, in part, to provide COVID-19 relief, but it also amended parts of the Internal Revenue Code.
The law will apply to tax year 2022, so those eligible for these 1099-Ks will receive them starting in 2023.
The reporting requirement is new, but the tax isn’t.
For this year, individuals are still required to report taxable income received through these platforms on their income tax return.
“Third-party information reporting has been shown to increase voluntary tax compliance and improve collections and assessments within [the] IRS,” said the agency in the FAQ section of its website about the change.
Payment providers like Cash App, PayPal, and Venmo have added updated guidance to their websites.
Payment app Venmo allows users to tag goods and services purchases in its app.
Venmo customers may receive an in-app notification or an email about confirming information for tax purposes.
For example, PayPal and its subsidiary Venmo offer an option for customers to tag their transactions as either a personal one or as a goods and services purchase.
Users are encouraged to select “goods and services” when they are sending someone money to purchase an item. Doing so also makes these transactions eligible for coverage under PayPal and Venmo’s purchase protection program.
In its FAQ section, Venmo noted that customers may receive an in-app notification or email asking them to confirm information they use when filing taxes, like a social security number and address.
Venmo noted that some amounts may be excluded from gross income, and therefore not subject to income tax, like if a user sells a personal item at a loss.
“We encourage customers to speak with a tax professional when reviewing their 1099-K forms to determine whether specific amounts are classified as taxable income,” said Venmo in a statement on its website.
Notably, payments for a good or service made via Zelle, which sends money between U.S. bank accounts, are not subject to this reporting rule.
Zelle would not need to provide a 1099-K because while it facilitates the sending of money between financial institutions, it doesn’t hold that money or participate in settling the funds.
The change to the reporting rule follows the announcement of a plan from the U.S. Treasury to close the “tax gap,” meaning the difference between what the government is owed and what it receives in taxes.
The American Families Plan Tax Compliance agenda, announced in May 2021, aims to raise an additional $700 billion over the next decade through new tax compliance measures.
“These unpaid taxes come at a cost to American households and compliant taxpayers as policymakers choose rising deficits, lower spending on necessary priorities, or further tax increases to compensate for the lost revenue,” said the department in its plan.
The treasury found the tax gap was nearly $600 billion in 2019.
“Working to close the tax gap reflects a commitment to ending our two-tiered tax system, one where most American workers pay their full obligations, but high earners who accrue income from opaque sources often do not,” said the treasury.
For more information about changes to tax reporting rules and the 1099-K form, visit the IRS website.
Users are encouraged to select “goods and services” when they are sending someone money to purchase an item. Doing so also makes these transactions eligible for coverage under PayPal and Venmo’s purchase protection program.
In its FAQ section, Venmo noted that customers may receive an in-app notification or email asking them to confirm information they use when filing taxes, like a social security number and address.
Venmo noted that some amounts may be excluded from gross income, and therefore not subject to income tax, like if a user sells a personal item at a loss.
“We encourage customers to speak with a tax professional when reviewing their 1099-K forms to determine whether specific amounts are classified as taxable income,” said Venmo in a statement on its website.
Notably, payments for a good or service made via Zelle, which sends money between U.S. bank accounts, are not subject to this reporting rule.
Zelle would not need to provide a 1099-K because while it facilitates the sending of money between financial institutions, it doesn’t hold that money or participate in settling the funds.
The change to the reporting rule follows the announcement of a plan from the U.S. Treasury to close the “tax gap,” meaning the difference between what the government is owed and what it receives in taxes.
The American Families Plan Tax Compliance agenda, announced in May 2021, aims to raise an additional $700 billion over the next decade through new tax compliance measures.
“These unpaid taxes come at a cost to American households and compliant taxpayers as policymakers choose rising deficits, lower spending on necessary priorities, or further tax increases to compensate for the lost revenue,” said the department in its plan.
The treasury found the tax gap was nearly $600 billion in 2019.
“Working to close the tax gap reflects a commitment to ending our two-tiered tax system, one where most American workers pay their full obligations, but high earners who accrue income from opaque sources often do not,” said the treasury.
For more information about changes to tax reporting rules and the 1099-K form, visit the IRS website.
More on Policies & Issues
The Latest
MajorsApr 01, 2026
Foundrae Sues Pandora for Allegedly Copying Its Medallion DesignsFoundrae also accused the jewelry giant of copying its mood board style of marketing.
AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to AuctionA Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in MarchThe Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s BookThe retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.
Weekly QuizMar 26, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant ApplicationsApplications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.
ColumnistsMar 31, 2026
Q1 Clues That Reveal Where Your Jewelry Store’s Sales Are Heading These customer behavior patterns say a lot about how successful your jewelry store is going to be this year, Emmanuel Raheb writes.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ CollectionMejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in DallasThe Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.
EditorsMar 30, 2026
Tom Moses Looks Back on His Decades at GIA Moses, who will leave the lab in May after nearly 50 years, discusses his start in the business, gemstones that stand out, and what’s next.
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring CatalogThe new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from DiavikProduction has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.
MajorsMar 30, 2026
Tanishq Opens First New England LocationThe store opening marks the 10th United States location for the India-based jewelry retailer.
MajorsMar 27, 2026
Saks Global Has Changed Its Mind About Closing These 3 StoresTwo Saks Fifth Avenue locations, one in Florida and one in California, and one Neiman Marcus store are off the chopping block.
IndependentsMar 27, 2026
Jimmy West, Longtime LJG Executive Director, Dies at 72West, who started in the art department at the Leading Jewelers Guild in 1979, is remembered for his patience, kindness, and dedication.
CollectionsMar 27, 2026
Itä’s ‘Yarí Whirl’ Ring Tells Every Side of the StoryIn the “Tesoro” version of the ring, our Piece of the Week, each side of the gold hexagonal nugget has a unique colored gemstone design.
WatchesMar 26, 2026
Q&A: Citizen Watch America President Jeffrey Cohen on Eco-Drive’s 50th AnniversaryCohen discusses the evolution of Citizen’s light-powered technology, the brand’s cross-generational appeal, and tariffs.
IndependentsMar 26, 2026
Peter Smith Pens Book on Human Behavior in Sales“Essentially Human: On Sales and Salespeople" reveals the underlying human traits and behaviors of the most successful sales professionals.
CollectionsMar 26, 2026
Lionheart Celebrates 13 Years of ‘Cassandane’The collection features symbols of love, luck, and light, based on the story of Queen Cassandane and Cyrus the Great of Persia.
Events & AwardsMar 26, 2026
NAJA, Instappraise Introduce New ScholarshipIt’s the third scholarship to be launched as part of the partnership to help appraisers advance their professional credentials.
Events & AwardsMar 26, 2026
JA Still Accepting Entries for 2026 CASE AwardsThe deadline for entries in the jewelry design competition has been extended to April 3.
SourcingMar 25, 2026
Rob Bates Steps Down as JCK News Director After 28 years with JCK, the veteran industry journalist is launching his own publication on Substack called The Jewelry Wire.
GradingMar 25, 2026
New York’s Natural History Museum, Wiley To Build Minerals DatabaseWiley said the project will give scientists worldwide access to the American Museum of Natural’s History renowned mineral collection.
CollectionsMar 25, 2026
Boochier Turns Flower Friendship Bracelets Into Fine JewelryThe “Flower Puff” collection looks to beaded flower friendship bracelets from childhood, turning the silhouette into nostalgic fine jewelry.
