Learn more about reporting thresholds for the current tax year. This information is not intended to be and should not be construed as tax advice. To determine whether specific amounts on your 1099-K are classified as taxable income, you should speak with a tax professional. Illinois (IL): > $1,000 and 4+ separate transactionsĪnyone who meets the applicable reporting threshold for payments received for goods and services through Venmo (or any other payment app) can expect to receive a Form 1099-K.Īdditionally, PayPal and Venmo will file Form 1099-K for any customer who was subject to backup withholding during 2023, regardless of total payments for the year.Some states have lower reporting thresholds:
Venmo's IRS 1099-K tax reporting requirements only pertain to payments received for sales of goods and services and DO NOT apply to friends and family payments.įpr the tax year 2023, the IRS will require reporting of payment transactions for goods and services sold that exceed $20,000 and 200 transactions. For questions about your specific tax situation, please consult a tax professional. Information provided by Venmo is not intended to be and should not be construed as tax advice.
Do you have questions about 2023 IRS federal tax reporting thresholds? You can view information specific to this change and how it impacts you here.
