How do I file my contractor's income with new PayPal law?

[Sky2025]

Hello, 

I paid a contractor through PayPal AND Zelle. I know they will receive a 1099 from PayPal for PART of their income but how do I report this on my taxes. For example (fictional numbers below): 

I paid Susie:

$20,000 via PayPal for which she will receive a 1099 from PayPal (not me) 

$25,000 via Zelle for which I guess I need to send her a 1099 for? (please let me know if I am correct). 

If this is in fact the case, how do I report this on my deductions especially what PayPal is sending her? I do not want $45K reported twice for her. 

[Bsch4477]

Are you an individual or a business paying the contractor?

[Sky2025]

I am an individual but I would like to know the answer for businesses too.

[Bsch4477]

You don’t have to send a 1099. 

[Sky2025]

I don't have to send a 1099 for the PayPal amount but I would have to send a 1099 for the Zelle amount. Correct? It's over the threshold

[WS13]

Not if it's personal.

[captaincarrot]

Can I ask for clarification on this? It sounds like, as the business you don't have to send a 1099-NEC because the payment issuers (Paypay, Venmo, etc) will issue a 1099-K, but as the small business, how do you report the expenses? You used to do this via the 1099-NEC. Where are you supposed to do this now in the small business' taxes?

[Bsch4477]

The IRS doesn’t concern itself with Venmo or PayPal so the rules about issuing a 1099-NEC are unchanged. It is up to the recipient of the 1099-NEC to exclude  on their return duplicate payments from their payment apps.