Will Venmo send me a 1099 form? (all you must know)
More recently, Venmo has been used for a wide range of transactions. Although the app is primarily used for payments between friends and family, many people now have business profiles on Venmo.
Plus, receiving payments for goods and services on Venmo is quick and easy. But what happens when tax season arrives? Will Venmo send 1099 forms? This article will tell you all you need to know, so keep reading!
Will Venmo send me a 1099 form in 2022?
If you have a business account with Venmo and you make $600 or more during the year, Venmo will report those earnings to the IRS and send you a 1099-K in 2022. This form details your income for the year and is sent to you and the IRS by January 31 for tax purposes.
Making money on Venmo with a business profile is a great way to run a business as a freelancer or independent businessman, but you should understand how Venmo’s taxes work, so keep reading to learn more!
Does Venmo report to the IRS?
If any business profile has revenue of $600 or more from the sale of goods and services in a year, Venmo is required by federal law to report those revenue to the IRS.
However, keep in mind that standard uses of Venmo, such as paying for dinner with friends and family or getting reimbursed for things you buy for friends, are tax-free.
Any payments sent to your business profile on Venmo are considered “goods and services” payments and will count towards your annual income.
Also, if it equals or exceeds $600, it needs to be reported to the IRS.
Remember, according to the IRS, only payments for goods and services received are taxable.
Also, some transactions on your 1099 form may also be exempt, so be sure to speak with a licensed tax professional to see what your annual tax report should look like.
How do I access my 1099 form on Venmo?
Venmo publishes tax forms electronically shortly after the start of the new year. Your 1099 form will be available for download when you log into your Venmo account online.
Are personal accounts taxable on Venmo?
Personal accounts used to transfer money between friends and family are not taxed. Required tax reporting is not available for personal use of the Venmo app.
However, personal accounts cannot be used to sell goods and services, which is why Venmo now has the option to let users create business profiles.
When will Venmo send the 1099 form?
Venmo publishes all tax forms at the beginning of each year, so they should be available for download from your online Venmo account by January 31st.
Additionally, when Venmo issues a Form 1099-K to your account, it also reports the same information to the IRS for tax purposes.
However, business accounts with income less than $600 for the year will not be automatically reported and will not receive a 1099 form.
How do I confirm my tax information on Venmo?
To complete tax verification on Venmo in order to receive all the documents you need for your next tax year, first go to Settings in the Venmo app.
Under Settings, tap Authentication. There, you have the option to enter your tax ID or SSN.
However, be careful when receiving emails and never enter sensitive information anywhere outside of the Venmo app.
Should I still report my Venmo income if my income is less than $600?
If you make any money selling goods and services on Venmo, you should still report your earnings to the IRS even if you didn’t receive a Form 1099-K.
This is because the IRS considers income earned on a peer-to-peer platform like Venmo to be the same as income earned on any other platform, so the same tax rules still apply.
If you’re not sure whether your income on Venmo needs to be reported with your other income for the tax year, be sure to speak with a licensed tax professional.
To learn more, you can also read our posts on how Venmo makes money, Venmo works in Canada, and whether Venmo is safe.
in conclusion
For business profiles where Venmo earned $600 or more in the previous year, Venmo will send a Form 1099-K online and report your earnings to the IRS.
However, business accounts that don’t earn $600 that year won’t receive a 1099 form and won’t automatically report their earnings, but Venmo users are still responsible for reporting any earnings to the IRS.
