Anonymous wrote:It's only for payments tagged as "goods and services", so if you paid your dog walker as "friends and family" they will not get a 1099.

Anonymous wrote: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.

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Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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.

Can I ask why you are apparently receiving so many large Venmo transactions that are marked incorrectly as goods and services? Maybe start there.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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.

Can I ask why you are apparently receiving so many large Venmo transactions that are marked incorrectly as goods and services? Maybe start there.

PP said no such thing.

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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.

Can I ask why you are apparently receiving so many large Venmo transactions that are marked incorrectly as goods and services? Maybe start there.

Anonymous wrote:My ex pays child support by Zelle. Am I going to have to pay taxes on that now????

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

Indeed. This is a classic example of right-wing fearmongering and misinformation, using the IRS as a scapegoat and straw man. Hence the references to the IRS "army" of auditors and making people fearful they'll be aggressively audited for using Venmo.

These things aren't going to happen, except in the fantasy world spun by right-wingers and the heads of the gullible followers.

Ok, smart guy. Tell me what form and line number this is then.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

Anonymous wrote:

Anonymous wrote:No. It means the transactions will be reported, which means that if you are making money and that money is coming to you through Venmo you can no longer hide your income.

For example, my tenant pays the rent through Venmo. I’ve always reported the rental income, so Venmo reporting the same thing makes no difference to me.

If you’re not hiding your income, you’re fine. Are you a tax cheater?

NP and tax expert here.

The first two sentences are correct.

The third is unnecessarily inflammatory and hostile given the lack of understanding about tax and the amount of misinformation about how taxes and information reporting obligations work. It wasn't helpful. Being concerned about this doesn't mean someone is a tax cheat.

Bottom line is this is no different than a bank account, brokerage or mortgage company reporting information about your payments and interest income, etc. to the IRS. It's no different than a W2. All you have to do at tax time is account for the cash flow on Venmo (which may or may not be "income") when you do your tax return. It certainly adds complexity, but if you reconcile it properly, it's not big deal. PP's flip comment aside, if you've been selling something on Etsy and accumulating money on Venmo and never putting it in your bank account and not reporting that income to the IRS on Schedule C or as hobby income, you will need to start doing that. But if you're just a passthrough for, say, your kids' travel team and the money you're collecting pays for team tournaments and uniforms or whatever, you just show the expense side of things and have no net income.

It's just reporting cash flow. That's all.

Being wary of this doesn't necessarily equal being a tax cheat, pp. Shame on you.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

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.

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Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.

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.

So much wrong with this reply.

1) It's not going to be a pain in the ass. There will be a line where you report whatever number is on the 1099 but then probably a line in which you offset or claim it's exempt or whatever. You only have to explain if you get audited. You probably won't get audited.

2) There's no "new army of IRS agents" with which you have to "argue." I suspect you are alluding to the hiring of new agents over the next decade to replace attrition of rank-and-file employees. It's not like they're all auditors, not even close, and all that's going to is staff the IRS at levels it should have been all along. So, stop with the inflammatory language.

Where is this line where I offset the 1099 income or claim it is exempt? Hint: it doesn't exist. If you get a 1099 that is wrong, and can't get the issuer to correct it, then your only option is to attach a statement to your return. Even if you do that, you will probably get an adjustment notice from the IRS and then you'll have to write them a bunch of letters trying to convince them that the 1099 is wrong.

NP. It's on your tax forms that you use to file. Not the 1099. You probably shouldn't be posting about things you know nothing about.

Guys, this is going to be similiar to 529s. All 529 distributions get reported as qualified distributions, whether you use the money for education or not. It is up to you to report it the correct way. If you don't, the only way the IRS finds out is if you are audited. This isn't hard.

I realize that. I have prepared my taxes for a long time. Please tell me what form number and line number this is. TYA.

Well, you will only receive the 1099-K from Venmo (or whoever) if you receive a payment for goods and services (NOT A PAYMENT FROM FAMILY & FRIENDS) therefore, you would be reporting that as income as you always have, either on your Schedule 1, Schedule C, or whatever form you use based on how your business has been established.

You're welcome.

You are deliberately avoiding the question. The issue is, what happens if you get a 1099 because someone incorrectly tagged a transaction as "goods or services." You claimed there was a line where you could just offset that. There is not.

You can use Line Z on your Schedule 1 under Additional Income for "other adjustments". But really, you shouldn't be listing the number as income if it isn't income. That doesn't make any sense. If it gets reported incorrectly, you get a corrected form.

Anonymous wrote:

Anonymous wrote: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?

No. Nothing has changed regarding what's taxable income.