Tax season is officially here, but if you’ve got an online side hustle, there’s a new rule you need to be aware of for the 2024 tax year.
According to CBS News, any revenue over $5,000 collected through third-party platforms such as PayPal or Venmo now has to be reported to the IRS.
That includes payments for clothing, concert tickets, collectibles and household items.
For the 2025 season, the digital income threshold to report will lower to $2,500, and then to $600 for the 2026 season.
The IRS officially opened for business on Monday (Jan. 27), which is when individuals can begin filing their 2024 tax returns.
The same day, the agency launched its free Direct File service, which will be available in 25 states this year.
READ MORE: When Can You File Your Taxes in 2025?
An estimated 140 million Americans will file returns this year. In 2024, two-thirds of filers got a refund, with an average return of $3,100.
Although the IRS began accepting tax returns on Jan. 27, the agency opened its Free File service on Jan. 10.
The Free File program, offered through certain tax software programs, is available to taxpayers who made $84,000 or less in 2024.
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The IRS says most refunds will be issued in less than three weeks, meaning taxpayers who filed on Jan. 27 should anticipate a refund by Feb. 17.
One day after filing a return electronically, taxpayers can check the status of their refund using the IRS’ Where’s My Refund? site.
The deadline to file a return with the IRS is April 15.
Below, you’ll find 21 famous celebrities who ended up owing anywhere from hundreds of thousands to millions of dollars to the IRS in taxes.
Gallery Credit: Claire Epting