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
EditorsNov 07, 2025
Piece of the Week: An MVP’s Sapphire Tennis Necklace At the 2025 World Series, the Los Angeles Dodgers’ Yoshinobu Yamamoto sported a custom necklace made by California retailer Happy Jewelers.
IndependentsNov 07, 2025
Foundrae’s New Palm Beach Location Is a ‘Golden Solarium’The brand’s seventh location combines Foundrae’s symbolic vocabulary with motifs from Florida’s natural surroundings.
FinancialsNov 07, 2025
Watches of Switzerland’s H1 Sales Up 8%The retailer also shared an update on the impact of tariffs on watch customers.
Brought to you by
Jewelers of America Aligns New Mission to Create Meaningful Impact for MembersFrom educational programs, advocacy, and recent MJSA affiliation, Jewelers of America drives progress that elevates businesses of all sizes.
SourcingNov 06, 2025
Pink Tourmaline Bracelet, Emerald Suite Take Top Spectrum Honors Pink and purple stones were popular in the AGTA’s design competition this year, as were cameos and ocean themes.
Weekly QuizNov 06, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsNov 06, 2025
Greenwich St. Jewelers Hosts Raffle Supporting Food RescueAll proceeds from the G. St x Jewel Boxing raffle will go to City Harvest, which works to end hunger in New York City.
IndependentsNov 06, 2025
Cornell’s Jewelers Names New PresidentCourtney Cornell is part of the third generation to lead the Rochester, New York-based jeweler.
SourcingNov 06, 2025
De Beers’ Production, Sales Increase in Q3 De Beers also announced more changes in its upper ranks ahead of parent company Anglo American’s pending sale of the company.
WatchesNov 05, 2025
Shinola President Steps Down Just as He Starts Former Signet CEO Mark Light will remain president of Shinola until a replacement for Ulrich Wohn is found.
AuctionsNov 05, 2025
Taylor Swift’s Engagement Ring Designer Makes Her Auction DebutKindred Lubeck of Artifex has three rings she designed with Anup Jogani in Sotheby’s upcoming Gem Drop sale.
FinancialsNov 05, 2025
Pandora Posts Modest Q3 Sales Growth Amid ‘Weak’ Consumer Sentiment The company focused on marketing in the third quarter and introduced two new charm collections, “Pandora Talisman” and “Pandora Minis.”
FinancialsNov 05, 2025
Brilliant Earth’s Q3 Sales Climb 10%The jewelry retailer raised its full-year guidance, with CFO Jeff Kuo describing the company as “very well positioned” for the holidays.
MajorsNov 04, 2025
Danny Clark to Become Stuller CEO, Succeeding Matt StullerStuller COO Belit Myers will take on the additional role of president, with all changes effective at the start of 2026.
ColumnistsNov 04, 2025
Peter Smith: What Do Birds Have to Do With the Price of Gold? Smith cautions retailers against expending too much energy on things they can’t control, like the rising price of gold.
TrendsNov 04, 2025
Amanda’s Style File: Fall Colors for November BirthdaysCitrine and topaz are birthstones fit for fall as the leaves change color and the holiday season approaches.
IndependentsNov 04, 2025
Weston Jewelers Heads to Fort LauderdaleThe family-owned jeweler will open its fourth store in Florida in late 2027.
CrimeNov 03, 2025
Men Dressed as Construction Workers Burglarize Jeweler’s Home The NYPD is looking for three men who stole a safe and jewelry valued at $3.2 million from the home of a jeweler in Jamaica Hills, Queens.
MajorsNov 03, 2025
Matthew Rosenheim Takes Over as JA Board ChairThe trade organization also announced its executive committee and five new directors.
CollectionsNov 03, 2025
Muse’s ‘Have a Heart’ Collab Returns, Now With DDGThe “Have a Heart x Diamonds Do Good” collection is championed by model and humanitarian Flaviana Matata and will benefit her foundation.
AuctionsNov 03, 2025
Kashmir Sapphire Ring Tops Christie's Online AuctionThe ring, set with a nearly 17-carat Kashmir cabochon sapphire, sold for $1 million.
TrendsOct 31, 2025
Piece of the Week: A Spinner Fit for ‘Frankenstein’This “Mother Father” spinner necklace from Heavenly Vices Fine Jewelry draws inspiration from Victorian Era jewelry.
CrimeOct 31, 2025
5 More Arrested in Louvre Heist, Jewelry Still Missing The suspects were rounded up in Paris and its suburbs on Wednesday night, but none of the stolen jewels were recovered with them.
Recorded WebinarsOct 31, 2025
Watch: How to Master Google Reviews for Your BusinessExperts share top tips on how to encourage positive reviews and handle negative feedback.
Supplier BulletinOct 30, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
CrimeOct 30, 2025
29-Year-Old Man Charged in Multiple Seattle-Area Smash and Grabs The suspect faces charges in the August robbery of Menashe & Sons Jewelers and is accused of committing smash and grabs at two pawn shops.
Lab-GrownOct 30, 2025
Alison Lou’s New Collection Uses Lab-Grown Diamonds and ResinThe “Lumière Fine” collection was born from designer Alison Chemla’s interest in the transformative power of light.
