Question

Using Venmo For Personal Transactions

Forum|Forum|3 years ago
August 31, 2022
1 reply
0 views

Hello,

If I use venmo for personal use only, but sometimes people pay me back large sums of money ($600+) because I fronted the cost of concert tickets, would that affect my taxes or require me to take any action on a 1099-K?

KochuK

Hi ryusan, thanks for posting the question.

Quote

make sure payments to you or others are properly classified as an amount paid for something other than goods or services where possible. On sites like PayPal and Venmo, a payment can be designated whether it is to family and friends or a business transaction for goods and services. This designation will determine if the transaction(s) result in the issuance of a Form 1099-K.

Unquote

TAS Tax Tip: Use caution when paying or receiving payments from friends or family members using cash payment apps

https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-use-caution-when-paying-or-receiving-payments-from-friends-or-family-members-using-cash-payment-apps/

Hope the above clarifies.

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