By Kemberley Washington, CPA, Bankrate.com

If you sell goods or services or rent property, and get paid through Venmo, PayPal, Cash App or another payment app, you may have been surprised by a Form 1099-K this year.

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Here’s why you might be among the millions of taxpayers who got this form for the first time: If you received a total of $5,000 or more through a payment app in 2024, that company is now required to report that amount to you — and to the IRS.

The standard before 2024 was that a 1099-K had to be issued only if you received $20,000 or more and had more than 200 transactions. Now the threshold dollar amount is much lower, and there’s no minimum transaction requirement.

And that threshold amount is slated to drop even more, with even more people likely to receive 1099-Ks next year: The $5,000 reporting threshold for tax year 2024 drops to $2,500 for 2025 and then plummets to $600 for 2026 and beyond.

While the new reporting rules might be a shock to some freelancers or people with side hustles, technically the tax rules didn’t change: You were always supposed to report that income to the IRS.

What is the 1099-K?

The 1099-K form reports payments for goods and services received from credit cards, mobile payment apps, online marketplaces, auction sites, ride-hailing apps, crowdfunding sites and more. Form 1099-K must be sent to taxpayers by Jan. 31 of the following year. That is, you should have received your 1099-K for 2024 by the end of January 2025. (See the 2025 tax deadlines.)

If you sell goods or services, or rent out property, the money you earn is generally taxable income (which, don’t forget, you can reduce by your costs, including qualified business deductions). Even selling your own clothes or furniture could count as taxable income, the IRS says, if you earned a profit.

If, however, you’re using Venmo or another payment app to pay your friend back for dinner, or to send a birthday present to your sister, this money shouldn’t be reported on a 1099-K. If you do receive a 1099-K, you’ll want to check to make sure that only taxable income is included on the form. (See below for how to deal with incorrect 1099-Ks.)

The income threshold for Form 1099-K was lowered to $600 as part of the American Rescue Plan Act (ARPA) of 2021. Prior to ARPA’s passage, only total payments of $20,000 or more, and more than 200 transactions, required a Form 1099-K.

During the debate over ARPA, tax pros and others expressed opposition to the lowered payment thresholds, with the American Institute of Certified Public Accountants among those warning Congress that the lower threshold would lead to confusion and errors. Ultimately, the IRS postponed the new reporting requirements in 2022 and 2023, allowing more time for the payment apps, officially known as third-party settlement organizations, to conform.

New 1099-K reporting requirements

To give third-party settlement organizations more time to comply with 1099-K reporting requirements, in 2024 the IRS announced a phased-in approach to the reporting thresholds:

2023 and earlier: $20,000+ and 200+ transactions

2024: $5,000+

2025: $5,000+

2025: $2,500+

2026: $600+

Not all payment apps are alike

While taxpayers can expect Form 1099-Ks from PayPal, Venmo, or Cash App, Zelle won’t be included in that list.

“The Zelle platform directly transfers funds from one bank account to another, similar to a wire transfer. Thus, it never has custody of the funds, it simply moves money,” says Monica Houston, a certified public accountant in Brentwood, Calif.

Therefore, Zelle transactions are not subject to reporting requirements.

Who is likely to receive a 1099-K?

The Form 1099-K is issued to taxpayers who receive direct payments for selling goods or providing services. While the reporting income threshold is $5,000 for 2024, in some cases you may receive a Form 1099-K even if the dollar amount is below the reporting threshold.

Whether you receive a Form 1099-K or not, if you received taxable income from the sales of goods or services, you’ll need to report it on your tax return.

What if you get an incorrect 1099-K?

If you used a payment app to exchange money with friends and family, that exchange isn’t taxable, and you shouldn’t receive a Form 1099-K for those transactions.

If you do receive a 1099-K with these types of transactions reported, then you shouldn’t report these as taxable income. Instead, contact the issuer of the Form 1099-K, request that they remove these items from the form and reissue a corrected Form 1099-K. The IRS has instructions on how to handle this situation.

If you use payment apps for personal and business use, then it makes sense to have a solid accounting system to clearly distinguish between business and personal payments.

“I recommend using an Excel spreadsheet or consider using QuickBooks online to adopt a computerized accounting system,” Houston says. Taking these steps can ensure you report your income correctly on your income tax return.

How to report income reported on Form 1099-K

Form 1099-K reports various types of payments, which affect how you report your income on your Form 1040 and related forms and schedules. If you sold personal items, you will need to report them on your tax return. If the item was sold for a loss, you cannot deduct the loss from your taxes, but you can zero out the reported income. However, if you sold an item for a profit, you must report the profit, which is the amount received less your cost, as taxable income.

Whether you receive payments for goods sold, services provided or rental property, these must be reported on your tax return. Freelancers, gig workers and self-employed people generally report income on Schedule C of their income tax returns. Rent payments are reported on Schedule E.

Houston stresses the importance of staying abreast of the new tax law changes and encourages taxpayers to take an active part in the tax process. “I highly recommend that they enlist assistance from a qualified tax professional in the final preparation of their return especially if they are receiving a Form 1099-K. The return on investment is usually worth it in many ways,” Houston says.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By Kimberly Palmer, NerdWallet

A financially-stressed Reddit user recently asked for advice: As the primary earner in their family, which includes two children, how could they keep up with a mortgage and other expenses once severance ran out?

Reddit users offered many helpful ideas. Filing for unemployment, looking for other forms of state assistance and finding a new job — even if it’s not perfect — were among the most popular suggestions.

When we asked financial experts how someone can best survive a period of unemployment, they echoed many of those same tips. They also emphasized the importance of budgeting, even before a job loss occurs.

Here are their strategies:

Cut back on all but the essential expenses

“Focus on your essentials, and cut that budget to as bare bones as possible,” says Danielle Byrd Thompson, a financial advisor with TPS Financial in Washington, D.C.

Thompson says using an online budgeting tool or budget app, which can help you stay on top of necessary expenses and uncover where you can freeze spending for the time being.

“What can be pared back without completely blowing up your lifestyle?” asks Lori Gross, a financial advisor at Outlook Financial Center in Troy, Ohio.

If you have multiple premium streaming subscriptions, for example, she suggests cutting them all except one basic subscription.

Lean on community resources

Local communities typically offer resources to people in need, Gross says, including food banks, crisis relief services and low-income assistance programs.

She encourages people struggling to pay for essentials to look up these kinds of local resources. The website 211.org can be a valuable resource to find nearby support.

Take advantage of hardship programs

In some cases, Thompson says, mortgage, phone and utility companies offer hardship programs that allow customers to temporarily pause payments when they are experiencing a short-term financial challenge, such as unemployment.

“Typically every provider has a plan,” Thompson says. She suggests calling, explaining your situation and asking about options.

While loan providers may also offer hardship programs, Thompson suggests first waiting a month to see if you really need to use it. After all, the debt continues to grow even if payments are temporarily paused.

“If you can afford to stick to the plan, then you should continue to pay, but if you can’t, pull back immediately,” she suggests.

Essentials like food and housing have to take priority if you are forced to make that difficult choice.

Earn income where you can

“No one is too good to bus tables, be a hostess or do food delivery,” Thompson says.

She suggests taking on these kinds of part-time roles to make money and fill the gaps before your next full-time position.

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“It puts cash in your pocket so you’re not totally depleting your savings,” she adds.

If you do earn extra income, Gross says, be sure to keep careful records of both your earnings and expenses. When you file your taxes, it will be easier to make sure you’re paying the correct amount.

At the same time, indicate on LinkedIn and other job-search websites that you are available for work, Gross suggests. That way, recruiters can find you and reach out if they have an opening.

“Be open to your options, even if they’re outside your normal parameters,” she suggests.

For example, perhaps you’ll find a job opening in an industry you worked in many years ago, even if it doesn’t match up with your most recent job experience.

When possible, prioritize emergency savings

Once you find a new job, Thompson says it’s time to begin rebuilding emergency savings. In fact, the period of unemployment might inspire you to shore up savings for next time.

Ideally, she says, everyone should aim to set aside three to six months’ worth of living expenses in a high-yield savings account. If that figure is too daunting, then saving a smaller amount can also help.

“Savings are the first line of defense when it comes to unexpected unemployment,” Thompson says. “Even if you start saving only $20 a month, make it a habit, then build from there.”

Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like budgeting and financial hardship, so we sifted through Reddit forums to get a pulse check on how users feel about surviving periods of unemployment. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

INDIANAPOLIS — For the second straight year, the Vikings ranked No. 2 in workplace conditions, according to the annual report cards released by the NFLPA. The only team that outperformed the Vikings was the Miami Dolphins.

This process of players anonymously grading their respective teams was put in place by the NFLPA three years ago. The main goal was to hold each franchise accountable for how they treat their players.

The categories include ownership, head coach, team travel, locker room, weight room and training staff among a handful of other categories. A total of 1,695 players participated in this year’s survey, which, according to the NFLPA, equates to roughly 77 percent of membership

Some notable highlights for the Vikings were owner Zygi Wilf and head coach Kevin O’Connell each receiving an A+ grade. The praise for Wilf included his willingness to invest in team facilities and build a competitive team, while O’Connell was lauded for being highly receptive to player feedback.

Additionally, the Vikings also received an A+ grade for both their locker room and their treatment of families. They have long been viewed as the NFL’s gold standard when it comes to treatment of families.

The biggest jump for the Vikings came with their training staff. They finished with a B grade last year in that category and it was raised it to an A this year. The improvement showcases the point of the NFLPA releasing its annual report cards.

The only place where the Vikings regressed was with their/dietician. They received an A grade last year and a B+ grade this year. It’s a good bet the Vikings will make that a point of emphasis moving forward.

Here’s a breakdown of where the Vikings ranked in each category this year compared to last year:

Treatment of Families

This year: A + (first)

Last year: A (first)

Food/Cafeteria

This year: A- (ninth)

Last year: B+ (seventh)

Nutritionist/Dietician

This year: B+ (fifteenth)

Last year: A (first)

Locker Room

This year: A+ (first)

Last year: A (first)

Training Room

This year: A- (fourth)

Last year: A- (second)

Training Staff

This year: A (second)

Last year: B (ninth)

Weight Room

This year: A- (tenth)

Last year: A (eighth)

Strength Coaches

This year: A (second)

Last year: A (first)

Team Travel

This year: A (third)

Last year: A- (second)

Head Coach

This year: A+ (third)

Last year: A+ (second)

Ownership

This year: A+ (third)

Last year: A+ (second)

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By LORNE COOK and MATTHEW LEE

WASHINGTON (AP) — A planned meeting between European Union foreign policy chief Kaja Kallas and Secretary of State Marco Rubio was abruptly canceled Wednesday due to “scheduling issues,” coming as political tensions have increased between Europe and the United States.

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Officials from both sides blamed scheduling challenges for preventing the pair, who last met at the Munich Security Conference in Germany last month, from meeting in Washington.

However, European officials said they were caught off guard, and, notably, Kallas had previewed her planned talks with Rubio just two days earlier.

In recent weeks, President Donald Trump has thrown the partnership between the U.S. and Europe into turmoil by pledging to charge higher taxes on imports from Europe that he says will match tariffs faced by American products. EU officials have traveled to Washington trying to head off a trade war.

Top Trump administration officials also have warned Europe that it must start taking responsibility for its own security, including Ukraine, and sidelined the Europeans from their initial talks with Russia on ending the war. In a remarkable shift, the U.S. split with its European allies by refusing to blame Russia for its invasion of Ukraine at the United Nations this week and joined Moscow in voting against a Europe-backed Ukrainian resolution.

In a bid to mend relations, French President Emmanuel Macron was in Washington on Monday for a White House meeting with Trump seeking support. British Prime Minister Keir Starmer, whose country is no longer a member of the EU but often aligns itself with the continental bloc on foreign policy, is due to visit Thursday.

Kallas herself had said Monday that she would be holding talks with Rubio “on the issues that are of interest to both of us,” which for the EU are chiefly Russia’s war on Ukraine and transatlantic relations.

“It is clear that the statements coming from the United States make us all worried,” she told reporters after chairing a meeting of EU foreign ministers.

Kallas said she hoped the EU-U.S. relationship can continue to function.

“So far, we do not have any indication that it would not. Of course it is going to change, that is very clear. But we should not throw something out the window that has worked well so far,” she said.

In a terse text message, her office referred all questions about why the meeting was canceled at short notice to the State Department.

A senior U.S. official said the planned meeting, which had never appeared on Rubio’s public schedule, had been pulled down due to “an unavoidable scheduling conflict.” The official spoke on condition of anonymity to discuss private deliberations.

Rubio attended Trump’s Cabinet meeting at the White House, which began late Wednesday morning.

The cancellation came less than a week after the State Department’s policy planning office sent an internal memo instructing officials who deal with Europe to highlight two specific issues in interactions with European counterparts. The Feb. 21 memo, seen by The Associated Press, also mentioned tentative plans for an upcoming Rubio meeting with Kallas.

Secretary of State Marco Rubio stands with Egyptian Foreign Minister Badr Abdelatty, not shown, at the State Department, Monday, Feb. 10, 2025, in Washington. (AP Photo/Mark Schiefelbein).

The two issues of concern identified in the memo were “Freedom of Speech and Free Opposition” and “Migration.”

On the former, the memo said Rubio and other U.S. diplomats should emphasize in their discussions with European officials the importance that the Trump administration attaches to free speech.

It noted that Vice President JD Vance had said in a speech at the Munich Security Conference this month that the West should “unite around free speech, halt censorship, reject suppressing opposition, jailing people for tweets and memes, etc.”

“The United States cannot continue supporting a continent that drifts in an authoritarian direction,” the memo said. “It’s bad for Europe and bad for us.”

On migration, the memo said U.S. officials, including Rubio, should refer to Europe’s “de facto open borders policy” as a “disaster” that must end. Trump has made cracking down on illegal immigration and carrying out mass deportations a signature priority.

“The United States is changing course on migration policy under Trump,” it said. “It’s well past time for Europe to do the same. We want you to remain civilization partners and to do that, you must get this under control.”

It was not clear if the blunt language in the memo contributed to the cancellation of the Rubio-Kallas meeting.

Although her meeting with Rubio was pulled down, Kallas was due to meet with U.S. senators and members of Congress to discuss the war in Ukraine and EU-U.S. ties during her two-day trip to Washington and to take part in a talk about those issues at the Hudson Institute research organization.

Cook reported from Brussels.