But Venmo is going to send a form to the IRS saying they sent me these payments, no? |
Not listing it all is a really bad idea because the IRS will catch it in form matching and then adjust your tax for you. Putting it on Line Z, Schedule 1 is also going to get in trouble because now you are claiming it as income when it never was. Have fun getting out of that mess. |
Putting it on Line Z makes it an adjustment, NOT income. If it's not income, you don't report it. Bottom line. The IRS MIGHT send you a letter saying you forgot to report XYZ and owe $100 in taxes. You send back a letter saying, it wasn't income, it was from Johnny's soccer team. You send them a receipt. You never hear from them again. |
How am I supposed to report the cash flow for friends paying me back for a hotel room? I didn't take the money as an LLC; do I need to file some new form to account for all this? I have no actual business income from Venmo but definitely have taken more than $600 in Venmo payments this year. I also have some Stubhub sales that I was paid for via PayPal, mostly at a small loss against my cost for the tickets, but I guess I'll just report that as income, since I definitely sold the tickets even if I lost money on the sales. |
I have received an incorrect 1099 before and know it is not a fun experience. I couldn't get the issuer to correct it. I spent at least 40 hours writing letters, providing canceled checks and bank statements, and on the phone with the IRS. It eventually worked out, but it is not as easy as you claim. |
Yeah / good luck getting the IRS to open their mail. |
It will probably be reported on Form 1099K On the 1040, line 8, with adjustments on line 10, if applicable. It depends on the character of the money transferred via Venmo. That gets worked out on Schedule 1. |
Can I ask why you are apparently receiving so many large Venmo transactions that are marked incorrectly as goods and services? Maybe start there. |
No. My understanding is that Zelle isn't involved in this nonsense. So it appears there is less scrutiny by using Zelle ![]() |
PP said no such thing. |
Then there’s zero cause for concern! No time will be wasted sending letters! Great! |
From an enforcement perspective there will probably be some de minimus threshold before amounts on these 1099s even attract attention.
The cash flow isn’t taxable, the character of the cash flow potentially is. But they aren’t going notice $1,000 reimbursement for a group vacation. That isn’t how the IRS works. |
My issue was not from Venmo. It was a consulting 1099 and it had the wrong number on it. |
Their systems pick up any discrepancy in reported income and what's on the return. They most certainly will notice it and you will get a letter. I've gotten these for issues of less than $100. I think most people who just have W-2 income don't realize how this works because their returns are very simple and mistakes are not common. |
I collect for teacher gifts and inevitably a parent sends me money as "goods and services" and Paypal deducts a small fee. The amounts are small (around $20) and the transactions only happen around the Holidays, teacher appreciation month, or the end of the year. I can't imagine the IRS coming after me even if Paypal, Venmo, whatever reports all "goods and services" amounts. |