Reply to So people will be taxed on venmo and zelle transactions?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I received about $1000 for a large Fourth of July party from several family members and put it all towards the food and drinks. Will this be taxed?[/quote]

No. Nothing has changed regarding what's taxable income.[/quote]

That doesn't mean anything. You think PayPal, Venmo, etc. are going to figure out why you received $1000+?  No, they're just going to report it to the IRS, send you the 1099, anyway, no you'll be forced to prove you received $1000 to pay for a BBQ party. Pain.in.the.ass.  we all know the govt will overzealous with their new army of IRS agents and try to argue and nauseum with people over proving that they received the money to pay for expenses.  Ridiculous.[/quote]

As long as you list that transaction as "friends and family", you will not receive a 1099 for those reimbursements.

Also, while I can't prove this, I think both the services and the IRS are going to be pretty lenient about one time payments. I think what this shift is really designed to capture is regular payments that are CLEARLY income. So a one time payment, even a large one, is unlikely to get flagged (unless you are dumb and categorize it as "goods and services"). But any regular payments of the same amount between two parties are going to get scrutiny. So unless you are throwing a neighborhood BBQ every month and getting reimbursed in a single lump sum on the 15th of every month, no one is going to ask you to explain anything about that event. Ever. You can calm down now.[/quote]

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