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This story is part of Taxes 2022, CNET's coverage of the best tax software and everything else you need to get your return filed quickly, accurately and on-time.

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If you have a side hustle, freelance or are self-employed, and earn money through digital apps like PayPal, Cash App, Zelle or Venmo, the IRS wants to know about it. While you should pay estimated taxes throughout the year on freelance income -- regardless of whether it's from a payment app or direct deposit -- there's a new tax reporting law that you should know about.

Initiated in January of this year, this new regulation requires digital payment apps to report an individual's earnings over $600 to the IRS, as a provision of the 2021 American Rescue Plan. 

What does this mean for you if you're frequently paid via PayPal, Venmo or another third-party processing app? We'll walk you through what's changed and debunk a few myths along the way.

Fact: Payment apps may request tax information from you

Now that this new law is in effect, payment apps like PayPal may reach out to you to confirm tax information, such as your employer identification number, individual tax identification number or