Big Beautiful Bill Repeals IRS 1099-K Venmo Tax

With President Trump’s signature on July 4, the Republicans have successfully repealed the Biden-era IRS 1099-K paperwork law.

This change protects millions of Americans from being hit with privacy-invading surprise IRS forms just for using everyday payment apps like Venmo, PayPal, or Cash App.

The Biden-era law required 1099-K paperwork issuance at a mere $600 in total payments in a year, with no transaction threshold, burdening tens of millions of Americans with invasive, confusing, and time-consuming IRS paperwork.

The Republican tax cut bill repeals the Biden provision and restores the previous dollar amount and transaction quantity thresholds, which means 1099-K issuance will only occur when both of two thresholds are met: $20,000 in payments in a single year from the same payer AND 200 transactions in a single year from the same payer.

The Biden 1099-K rule flooded Americans with confusing IRS forms for non-business activities. Just a few everyday examples:

• Retirees selling furniture on Facebook Marketplace while downsizing
• A friend covering dinner and getting paid back on Cash App
• A teacher collecting donations through Venmo for a fundraiser
• Roommates organizing a monthly rent payment

Under Biden’s rule, receiving just $600 in app-based payments would have triggered a 1099-K form.

Rep. Carol Miller (R – W. Va.), a member of the House Ways and Means Committee, explained the absurdity:

“Because Democrats lowered the 1099-K threshold, an American selling old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids has a childcare business, and roommates who split rent are now property managers.”

The enacted Republican Big Beautiful Law puts things back where they belong. It repeals the Biden law thus restoring the original twin thresholds: A 1099-K will only be issued if someone receives more than $20,000 and has over 200 transactions from the same payer in a single year.

This is real tax simplification. It protects casual users, small sellers, and gig workers. It also lets the IRS focus on actual taxable activity, not on birthday gifts and split tabs.

Thanks to Republican leadership and lawmakers like Rep. Carol Miller, Americans can keep using digital payment apps without the fear of receiving confusing and unnecessary tax forms.