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MILLIONS of users will have to get used to new tax limitations on third-party networks like Venmo and PayPal.

The IRS is advising users on what they'll need to do differently when filing taxes.

1Users of third-party payments apps will have to reports anything they earn over $600Credit: Getty

The alternative payment sites now have a $600 threshold for how much you can receive before you start seeing tax penalties.

Before 2022, the federal reporting threshold was only for taxpayers with over 200 transactions worth a total of over $20,000.

Congress decimated that amount as part of the American Rescue Plan Act of 2021, making it so even a single transaction worth $600 will cause users to file the federal Form 1099-k.

The new limit is estimated to bring in $8.4 billion from fiscal year 2021 to 2031, according to the Joint Committee on Taxation.

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The change applies to any transactions, including part-time work, side hustles and anyone selling goods.

These popular apps have been around for years, offering an easy way to send cash between friends or pay for goods and services.

Due to transactions between friends, some people may get the 1099-K by accident.

Personal transfers for things like splitting meals or gifts or paying allowances are not part of the new rule, but they may trigger the form to be sent accidentally.

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If you do receive a form by accident, you should contact the issuing company for a correction.

Tax implications of side hustles

Despite these changes, tax implications for side hustles are nothing new.

Many taxpayers who are self-employed need to file an income tax return and pay estimated tax each quarter.

“Unfortunately, having a side hustle, such as freelancing and gig jobs, can attract certain tax complications,” Mark Stewart, a certified public accountant for Step By Step Business told The Sun.

“Most people forget that aside from the taxes they pay on their main earnings, they also have to personally file and pay taxes on their side hustle.”

Another tax expert Kari Brummond used an example of someone earning $500 per week as a driver or extra work through Upwork.

"At tax time, you will receive a tax bill of at least $900 on that income," the preparer for Taxcure told The Sun.

"If you have to pay income tax, the tax bill on your six grand in side hustle income could be $1500 to $2700 or more."

Anyone who earns $400 or more from self-employment needs to report it to the IRS, according to the agency.

Self-employment applies to those conducting business for themselves including if it’s part-time.

Also, individuals running or partnering with a trade or a business are also affected.  

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For more related stories, see the key dates to look out for this tax season.

The Sun compiled a list of the best 10 money-making side hustles for 2022.

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Americans have just three days left to apply for direct payments between $3,500 to $4,000 from $3million pot

THERE are just hours left for eligible Americans to act and potentially grab thousands of dollars worth of money.

The city of Jacksonville, Florida recently announced that it has roughly $3million left in its Emergency Rental Assistance Program and will help struggling residents make ends meet.

1New payments will help residents catch up on past-due rent

However, applications will only remain open only through 5 pm today due to limited funding.

That means there are just over a few hours to claim.

Residents can apply online or by texting APPLY to 211904.

Households can receive direct payments for up to a combined 12 months of past-due rent and/or utilities.

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Chiquita Moore, director of operations for the Neighborhoods Department of Jacksonville, told News4Jax that so far 15,000 households have received anywhere between $3,500 and $4,000.

Who is eligible?

To be eligible, you must reside in Duval County, Florida.

One or more individuals in a household must meet the following requirements to claim the cash:

  • Qualified for unemployment or incurred significant financial loss due directly or indirectly to COVID-19
  • Risk of experiencing homelessness or housing instability such as past due rent or utilities, an eviction notice and unsafe or unhealthy living conditions
  • Household earnings must be no more than 80 percent of the area median income (AMI)
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The lease must be in the applicant's name and the dwelling must be their primary residence.

Priority will be given to households whose incomes are at or below 50 percent of the AMI or have at least one member that has been unemployed for at least 90 days.

Only one tenant per household can apply for assistance.

Other states and cities offering assistance

Several states are offering help to cash-strapped residents during the holiday season.

The Tennessee Department of Human Services is distributing $500 bonus payments to thousands of families.

Those participating in the state’s Families First program (FFP), also known as Temporary Assistance for Needy Families (TANF), will be eligible for money this Christmas.  

California is continuing to send out rebates, which are worth between $200 and $1,050.

Those with W–Z last names will begin getting cash on Sunday, December 4, and are expected to receive all of it by December 10.

W–Z last names will begin getting cash on Sunday, December 4, and are expected to receive all of it by December 10.

Residents with last names that start with A-K will get their money from Monday, December 5 through December 17.

And unfortunately, Connecticut essential workers who received state-funded coronavirus pandemic bonuses will get less money.

Due to limited funding, the General Assembly modified the state-funded coronavirus pandemic bonuses after there were more applications than expected for the Premium Pay program, reports the Connecticut Mirror.

For more on how you can get money, see the full dates in 2023 that SSI, Social Security and SSDI will be paid out.

Read More on The US SunJIMMY G-ONE Garoppolo 'out for the season' after foot injury as Purdy leads 49ers to a winHELPING HAND I'm a nurse - people can never tell what I'm wearing under my scrubs

Plus, see the dozens of states offering guaranteed income.

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