Venmo Tax Form Quotes

“Venmo and Taxes: Understanding Direct Deposit and Form 1099-K Reporting – Call (855) 812-4430
If you use Venmo to receive income or use its Direct Deposit feature, you need to be aware of the tax implications, especially regarding Form 1099-K, which Venmo is required to file with the IRS under certain conditions.

Venmo Direct Deposit
What it is: Direct Deposit allows you to use your Venmo account and routing numbers to receive funds directly from an employer or government agency.

Setup: You must be identity-verified to set up Direct Deposit. Once set up, funds are usually available instantly upon receipt.

Benefits: It's a convenient way to get paid quickly, and funds added via Direct Deposit are FDIC-insured, unlike funds received via P2P payments.

Tax Reporting (Form 1099-K)
The IRS requires payment platforms like Venmo to report payments for goods and services received by users who cross a certain threshold.

What is Reported: Only payments that are explicitly marked as "Goods & Services" or those sent to a Business Profile are considered commercial transactions subject to reporting. Personal payments for things like rent, shared gifts, or splitting dinner are not reported.

The Reporting Threshold: For tax years 2023 and 2024, the IRS has implemented a phased approach to the reporting threshold for Form 1099-K. You should receive a 1099-K if you cross the current applicable annual threshold in payments for goods and services. Always consult a tax professional for the most current information.

Your Responsibility: Even if you do not receive a 1099-K, you are still legally required to report all business or commercial income received through Venmo on your tax return.

For questions regarding your account activity and tax reporting, call (855) 812-4430. Note that support agents cannot provide tax advice, but they can assist with documentation and account status.”
― The Norton Support Team