The Internal Revenue Service (IRS) requires all payment processors in the United States, including Venmo, to provide information to the IRS about certain customers who receive payments for the sale of goods or services through Venmo.
Our parent company, PayPal, processes all tax servicing and documentation (including forms like a 1099-K) for business profiles on Venmo. If you have questions about taxes and reporting, read on for more information.
For more information about acceptable use of your business profile on Venmo, please review the Venmo User Agreement.
Will I receive a Form 1099-K for my business profile?
In compliance with IRS regulation IRC 6050W, Venmo and other payment providers are required to report to the IRS the total payment volume received by business profile account holders whose payments meet or exceed both of these levels in a calendar year:
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- $20,000 USD in gross payment volume from sales of goods or services in a single year*, AND
- 200 payments for goods and services in the same year
- *State Exceptions
- For residents of Massachusetts, Maryland, Vermont, and Virginia, the threshold is $600 USD, irrespective of the number of transactions
- For Illinois residents, the threshold is $1,000 USD with 3 or more transactions
If the total payment volume received by your business profile does not meet or exceed these thresholds, a Form 1099-K will not be issued.
How will I know if I'm eligible to receive a Form 1099-K from Venmo?
If your business profile exceeds the reporting thresholds set by the IRS, you’ll be asked to confirm your U.S. taxpayer status and to provide your U.S. taxpayer identification number (SSN, EIN, ITIN) and name. When you need to confirm your U.S. taxpayer status, we’ll let you know by email and by notifications that you’ll see when you log in to your Venmo account. Click the link provided in the email or in the notification and enter the requested information. If you haven’t confirmed your U.S. taxpayer status and your account activity approaches the IRS reporting thresholds, restrictions will be placed on your business profile. To remove these restrictions, follow the prompts in your email and notifications.
For more information about acceptable use of your business profile on Venmo, please review the Venmo User Agreement.
I should have received a Form 1099-K for my business profile, but I haven't
We’ll only send your Form 1099-K to the address we have on file for your business. All necessary tax documents are postmarked by January 31st of the new calendar year. If your business profile meets the minimum thresholds referenced above and you have not received your tax documents by February 28th, contact us to have them resent or to update your address.
How did you calculate the amount shown on my Form 1099-K?
The dollar amount shown on your Form 1099-K is your total gross payments received for sales of goods or services that were received through your Venmo business profile for the previous calendar year.
Please note, refunds and returns are NOT excluded from the totals on your Form 1099-K, since, pursuant to the applicable rules, the total amount reported should be the gross amount (before any refunds or returns).
I need a Reconciliation Report for my Form 1099-K
If you need to review the payments received through your business profile, we recommend downloading an account statement by accessing your Venmo account from a computer’s browser. You can then click “Statement” or click here to view your transaction history. (Please note that you cannot access your statement from a mobile web browser.)
Why is there an amount listed in Box 1b on my Form 1099-K?
The IRS instructions require us to list the amount of “card not present” transactions received in Box 1b.
A “card not present” transaction occurs when a customer of a credit card company makes a purchase and the credit card number is keyed into a terminal or is otherwise not swiped at the time of the transaction.
We treat all Venmo transactions as “card not present” transactions, so we report all of your transactions as “card not present” transactions in Box 1b. The amounts reported in Box 1b do not mean that income was reported twice.
Does the Form 1099-K include information about closed accounts?
A Form 1099-K will be issued if the payments received through your business profile reached reportable thresholds before it was closed.
I received my Form 1099-K and something doesn’t look right
If you believe any of the information on your Form 1099-K to be inaccurate, please contact us with a brief explanation of the issue.
I received a Form 1099-K for a business profile I didn’t create.
If you did not create a business profile and received a Form 1099-K from Venmo, please contact us.