Information provided by Venmo is not intended to be and should not be construed as tax advice. For questions about your specific tax situation, please consult a tax professional.
Understanding tax reporting on Venmo
What are the current tax laws?
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.
For the 2025 calendar year, Venmo and PayPal will issue Form 1099-K only when your payments for goods and services exceed $20,000 and you have more than 200 separate transactions in the calendar year. Personal (friends & family) payments are excluded. Some states have lower reporting thresholds.
Learn more about current tax laws and state-specific reporting thresholds.
Will I receive tax documents from Venmo?
Anyone 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.
PayPal and Venmo will file Form 1099-K for any customer who met the reporting threshold or was subject to backup withholding during the year. Customers who had backup withholding applied during the year can claim a credit or refund for backup withholding when filing their tax returns with the IRS. Learn more about IRS Form 1099-K.
Customers who sold cryptocurrency and customers who received certain rewards can also expect to receive tax forms from Venmo.
Are my Venmo payments taxable?
To determine whether specific amounts on your 1099-K are classified as taxable income, you should speak with a tax professional. This information is not intended to be and should not be construed as tax advice.
Why does Venmo need my tax info?
Venmo needs your tax information so we can prepare the correct tax forms for you. When you receive payments for goods and services on our platform, the IRS requires Venmo to report that payment activity if you reach the reporting threshold for these transactions.
By providing your tax info, you’re complying with IRS requirements for receiving payments for goods and services. Taking this step enables us to provide accurate information on tax forms you may receive from Venmo. By providing your tax information early (before you reach a reporting threshold), you can also avoid experiencing tax holds on your payments and subsequent backup withholding.
You can find the latest info about the current tax year’s reporting thresholds on the IRS website.
If you reach the reporting threshold and have not provided your tax information in the Venmo app, you will experience backup withholding.
What makes a payment goods and services?
When sending money on Venmo, users can choose to tag a payment as being for “goods and services”.
Whether it’s for a product you sell, a service you provide, or even an old couch you don’t want anymore, the person paying for the item or service can decide whether to tag the payment. All payments sent to business profiles on Venmo are tagged as purchases automatically and are therefore considered to be for goods and services.
What if I just go sell on another payment platform?
All payment settlement entities, including PayPal, Stripe, and Square, have the same IRS obligation.
How Venmo uses your tax information
What happens after I provide my tax info?
After you provide your tax info in the Venmo app, you will no longer experience tax holds or backup withholding on payments you receive.
If your Venmo activity for a given calendar year meets or exceeds the applicable reporting threshold, you can expect to receive tax forms from Venmo.
Tax documents are issued in January and February for the previous year. For example, if your 2024 activity reached the reporting threshold, you would receive a 1099-K in January of 2025 for your 2024 activity. Learn more about accessing your tax documents.
If you don’t end up qualifying to receive tax documents for the year, you can download your Venmo account statements to help you with any other reporting obligations you may have. You may also wish to seek the advice of a licensed tax advisor.
What if I don’t provide my tax info?
If you reach the reporting threshold for the sales of goods and services through Venmo (a payment settlement entity) without first providing your tax info, Venmo is required to withhold 24% of those payments and send it to the IRS for backup withholding. This is required by the IRS and helps to ensure that any applicable taxes due on these payments are paid.
If you do nothing, you’ll experience tax holds and 24% backup withholding on the payments you receive for goods and services throughout the year. In this event, we’ll still send you and the IRS a Form 1099-K.
Tax documents from Venmo
Which tax documents does Venmo issue and what are they?
Depending on your Venmo activity, you can expect to receive certain IRS forms for tax reporting purposes. You may receive any of the following forms – each reports a different type of income:
- Form 1099-K: This form reports the gross amount of payments you received for sales of goods and/or services through Venmo. It doesn’t include personal payments between friends and family.
- Form 1099-MISC: This form reports miscellaneous income that may still be taxable even if you didn’t sell goods or provide services. On Venmo, this can include certain reportable rewards.
- If you accept miscellaneous income payments in cryptocurrency, you may receive a separate 1099-MISC for those transactions, including cryptocurrency rewards and PYUSD rewards.
- Form 1099-DA: This form reports your digital asset activity to the IRS, including cryptocurrency sales or exchanges.
This information is not intended to be and should not be construed as tax advice. You should consult your tax advisor regarding your reporting of these transactions.
Why didn’t I receive a 1099-K this year?
If your activity does not meet the applicable reporting threshold, you will not receive a Form 1099-K. For example:
- You receive $18,000 from 300 sales → No 1099-K
- You receive $22,000 from 180 sales → No 1099-K
If the federal reporting threshold applies to you (i.e. you do not live in a state with a lower threshold), your activity would need to meet both the $20,000 and 200 transactions thresholds to be issued Form 1099-K.