【Loyalty Test (2024) Hindi Web Series】

A recent piece of TikTok finance advice has struck terror into the hearts of payment app users,Loyalty Test (2024) Hindi Web Series claiming that anyone who receives more than $600 on platforms like Venmo, Zelle, or CashApp will receive a 1099-K tax form starting next year.

Of course, everyone in these videos' comments immediately freaked out. What are we supposed to do for payments like splitting rent with roommates? Or paying for a big group trip? Would we have to – gasp– resort to cash?

Take a deep breath. These TikToks are leaving out a bit of vital information, probably in the quest for more enraged views.

---

You May Also Like

---

---

The answer is no, you most likely will not have to move larger payments away from your preferred app, or pay a sort of sales tax on large money transfers between friends or family members. While there are some policy changes afoot, taxes on larger payments will be mostly aimed at business transactions, notindividual person-to-person payments.

The impetus for the misleading social media finance tips comes from the American Rescue Plan Act of 2021. The act modifies the IRS reporting requirement for payments on apps from the previous threshold of $20,000 down to $600, and will go into effect Jan. 1, 2022. While this threshold is significantly shorter, it should only apply to business accounts on each platform.

Mashable Light Speed Want more out-of-this world tech, space and science stories? Sign up for Mashable's weekly Light Speed newsletter. By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy. Thanks for signing up!

To make extra sure that you won't be suddenly surprised with a tax form, we reached out to each popular payment app for their explanation on any changing policies.

Venmo (PayPal)

According to a spokesperson from PayPal, the American Rescue Act will be affecting tax reporting thresholds as stated, but will only be applicable to payments for goods and services, not to friends and family. It's also important to note that these changes should be industry-wide and not specific to PayPal or Venmo.

Zelle

While it's likely that Zelle's policies will be altered in similar ways to Venmo's and Paypal's, the platform declined to say anything specific enough to reassure users. "Zelle does not provide tax or legal advice. If consumers have questions about their individual situations, they should seek advice from a tax professional," a spokesperson told Mashable.

CashApp

CashApp did not respond to a request for comment from Mashable for more specific advice, but the official TikTok account did comment for clarity on one of the videos purporting the tax claim, as seen in the screenshot below.

CashApp's comments on a TikTok warning users about the tax amount. Credit: Screenshot: TikTok

As stated in the comments, a user may only receive a 1099-K form if they receive more than $600 on a Cash for Business account starting in 2022. Regular accounts seem to be exempt.

It's important to note that if you do receive a 1099-K form next year that you believe to be a mistake, you're not doomed to pay an additional tax. "These [1099-K forms] are just information reports. They don’t themselves determine tax liability," said Steven Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center at the Urban Institute, to Acorns.

If you do receive a form and need to prove that you aren't hiding business transactions, you can provide receipts for bigger transactions to explain any gifted amounts or person-to-person payments. As long as you're not making additional income over $600 via these apps, you should be in the clear!

Topics Apps & Software

• Science
• Shopping
• Games
• Digital Culture
• Entertainment
• Social Good
• Life
• Deals

• Best robot vacuum deal: Eufy Omni C20 robot vacuum and mop at record
• Luigi, a.k.a. the badass of the Mario Bros, dabs on his enemies before blowing them up
• Google Wifi has come to Asia, 6 months after its debut in the U.S.
• During Harvey, social media rose to the challenge as a force for good
• 'The Last of Us' Season 2, episode 5: The spores are here!
• A guy's Twitter account got suspended after he made a death threat—against a mosquito
• Leonardo DiCaprio and Kate Winslet love to quote 'Titanic' to each other
• Ford and Domino's team up for pizza deliveries with self
• Best robot vacuum deal: Eufy Omni C20 robot vacuum and mop at record
• New Thermostat E is the bargain Nest for everyone

• Teen makes perfect school
• Robots taking our jobs? Tax them, says Bill Gates
• FBI arrested the troll who allegedly sent seizure
• Reminder: Lena Dunham doesn’t give ‘the tiniest of shits’ what you think about her body
• Northwestern's first
• Ben Stiller urges world to pay attention to 'worst humanitarian crisis' since WWII
• Spotify and Taylor Swift might actually get back together (if this change comes through)
• Elderly man helps couple take a romantic photo and fails brilliantly
• Trump kicked One Direction out of his hotel because he's not a nice man
• 'Kitten fur' perfume will bring you one step closer to becoming your cat

• Analyzing Graphics Card Pricing: May 2018
• Asia's newest mobile wallet may actually get the region to go cashless, finally
• Read Tim Cook's letter to employees about how Apple is contributing to Harvey relief
• Google's new Google Maps feature will make parking less of a nightmare
• Keeping Hope Alive
• Louisiana's 'Cajun Navy' rushes to Texas to help rescue people from the floodwaters
• Comedian Jim Gaffigan's chatbot is here and it demands snacks
• Lunatic grows record
• Best Hydro Flask deal: Save $10 on a 24
• No, Conor McGregor wasn't homeless before his UFC career

• NYT mini crossword answers for May 12, 2025
• Google's ARCore SDK brings AR creation tools to Android
• 'No More Heroes' is coming back! The Wii classic gets a Switch sequel
• New 'Walking Dead' game is basically 'Pokémon Go' but with zombies
• This is the fattest of the extremely fat bears
• You can now use Amazon Echos to play music in multiple rooms at once
• YouTube redesign adds new logo and vertical videos that don't look bad
• Is Cersei pregnant or lying? Game of Thrones finale director weighs in
• 5 Ways to Access a Locked Windows Account
• On Skynet's 20th birthday, it's time to admit AI isn't the real threat