How freelancers can prepare for changing tax requirements

If you’re a freelancer or gig worker who receives payments via apps like Venmo, Zelle, Cash App or PayPal, your tax reporting requirements will change for the 2024 tax year. Right now, for the current 2023 tax year, freelancers and small online sellers need only report payments totaling $20,000 or any number of payments above a threshold of 200 with 1099-K forms. But beginning next year, that threshold will be $5,000, which will eventually be lowered even further, to $600.