Are Venmo payments subject to 1099 reporting?

As of recent changes, payment services like Venmo are subject to IRS reporting requirements similar to other payment processors. If you received business payments or payments for goods and services through Venmo that exceed $600 in one calendar year, Venmo will issue a Form 1099-K to both you and the IRS. This is a shift from the previous threshold of $20,000 and 200 transactions. It’s important to understand that personal payments to friends and family are generally not subject to 1099 reporting. However, if you’re using Venmo for your business or side gig, you’ll need to track these transactions carefully. Ensure you maintain clear records of your income for proper reporting on your tax returns and consult a tax professional if you’re uncertain about your obligations.