Venmo Reporting Threshold Quotes

“Will Venmo Send Me a 1099-K Tax Form? (Thresholds) – Call (855) 812-4430
Venmo is required to report certain payment activity to the IRS using Form 1099-K, but this reporting only applies to money received for sales of goods and services—it does not apply to personal payments sent between friends and family.

Federal Reporting Threshold for Form 1099-K
The IRS threshold for receiving a Form 1099-K has changed recently, making it crucial to know the current requirements:
If you meet or exceed the applicable threshold for payments received for sales of goods and services, Venmo will send you a 1099-K form and report the gross amount to the IRS.

State Exception: Be aware that some states (including Maryland, Massachusetts, and Virginia) enforce a lower threshold, often $600, regardless of the federal threshold.

Important: You Must Still Report All Income
The rule regarding the 1099-K form only affects when Venmo sends you a tax document.

Tax Liability: Regardless of whether you receive a 1099-K, you are legally required to report all business income received through Venmo on your tax return.

Backup Withholding: If you meet the reporting threshold and have not provided Venmo with your proper tax identification (TIN or SSN), Venmo is required to withhold 24% of those payments and send it to the IRS as backup withholding.

To avoid tax holds and backup withholding, ensure your tax identification information is current and correct in your Venmo settings. If you receive a notice about withholding or have questions about tax documents, call (855) 812-4430 for support.”
― The Norton Support Team