New laws are in place for business owners filing taxes
You used to have to report when you received $20,000 in payments and 200 transactions but the guidelines were lowered.
Waco, TX (FOX 44) -- Tax season is well underway, and there are some new changes this year regarding what you need to file.
It includes money transactions from third-party websites like Venmo, Cashapp, and Zelle.
Jackson Hewitt tax offices say this change was made for the IRS to get a proper count on businesses who rely on third-party vendors to receive payment.
"If you had more than $600 for 2023, you were going to get a 1099-K. Both you were going to get one and the IRS, and that had been on the books for two or three years," said Mark Steber Jackson Hewitt Tax Services Chief Tax Information Officer.
Steber says any transaction on a third-party vendor is taxable income.
You used to have to report when you received $20,000 in payments and 200 transactions, but the guidelines were lowered.
"They changed that rule down to $600 and one transaction, but the IRS thought that might be too much to take on for 2023, so they deferred it down for 2024 with a different amount," Steber said.
Steber says they're off to a slow start helping customers file their taxes.
At United Way Central Texas, they help customers file their taxes for free and have been working nonstop.
"It's been overwhelmingly busy. We always have done well in the last 13 years I've done the tax returns for the community," said Veshell Green, United Way Central Texas Vice President of Resource Development.
Green says all their volunteer income tax assistants must be certified before filing taxes.
They completed taxes for 1,200 customers last year and had a 98% acceptance rate by the IRS.
"That's hundreds of thousands of dollars worth of savings that people can put right back into their households," said Green.
Click here to make a reservation with United Way Central Texas to file your taxes.