How the IRS turns a $600 payment into a tax problem
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What happens when the IRS drops the threshold to $600
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Big tax update that will save a lot of headaches: - The IRS is scrapping the $600 1099-K reporting rule (no more Venmo/PayPal forms for small transactions). - The 1099-NEC filing threshold is rising from $600 to $2,000 starting in 2026. Why it matters: Most people who would’ve been impacted by the $600 threshold make under $200k and chasing those small transactions doesn’t move the needle. This change means fewer unnecessary forms, less confusion, and a system that focuses on the taxpayers where
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