The Internal Revenue Service (IRS) requires all payment processors in the United States, including Venmo, to provide information about customers who receive payments for the sale of goods or services. Learn more about what that means for you here.
Note: The IRS has delayed the implementation of the $600 reporting threshold for payment transactions for goods and services by one year. For the tax year 2022, the IRS will continue to use the reporting threshold of total payments exceeding $20,000 for goods and services and more than 200 transactions. Some states have lower reporting thresholds. Read on for more information.
Our parent company, PayPal, processes all tax servicing and documentation for those who receive payments for the sale of goods or services and those who buy and sell cryptocurrency on Venmo. If you have questions about taxes and reporting, you should consult a tax professional about your reporting of these transactions.
For more information about acceptable use of your Venmo account, please review the Venmo User Agreement.
The IRS has updated tax reporting thresholds for the 2022 and 2023 tax years. Learn more about how this affects Venmo users who receive payments for goods and services.
Which tax forms can I expect to receive from Venmo?
For the 2022 tax year, Venmo will issue a Form 1099-K to business profile owners and individuals who have passed reporting thresholds for payments received for goods and services.
The federal reporting threshold for 2022 is total payments exceeding $20,000 for goods and services and more than 200 transactions, which means that you could expect to receive a 1099-K if you exceed this threshold.
- Vermont, Massachusetts, Virginia, and Maryland have a lower threshold - $600 in gross payment volume from sales of goods or services in a single calendar year irrespective of the number of transactions.
For the tax year 2023, the IRS will use a lower threshold of at least $600.
Individuals who have sold cryptocurrency on Venmo during the 2022 tax year will receive a Gains and Losses Statement, irrespective of their state of residence.
If you haven’t sold crypto or received payments for goods and services on Venmo, you can still download your account statements from venmo.com to help with any other reporting obligations you may have.
How and when will I receive my tax forms?
1099-Ks are made available for qualifying users around January 31st and Gains/Losses statements are made available around February 15th. By default, Venmo will issue tax documents to qualifying users electronically.
Venmo users who signed up prior to July 22nd, 2022 may also receive tax documents by mail.
- If you are part of this group, you can opt in to electronic delivery in your Venmo app.
Why am I being prompted to “Go paperless”?
If you qualify to receive tax documents from Venmo, you can choose to receive those documents electronically rather than by physical mail. Learn more about opting in or out of paperless tax documents.
I never received a notice about tax forms from Venmo
If you do not receive notifications from Venmo about downloading your tax documents or if you’re unable to locate them on the website, it’s most likely that your previous year’s Venmo activity did not reach reportable thresholds. In this event, we recommend downloading your account statement as an alternative. Venmo is unable to furnish tax documents for accounts that did not qualify to receive them.
Will I receive tax documents if I closed my Venmo account?
If eligible payments received through your Venmo account reached reportable thresholds before the account was closed, you can expect to receive tax documents for that activity in the mail.
What if I need to update my tax information?
We’re happy to help make any necessary changes to your tax information. Learn more about what can and can’t be updated.
I got a notification asking me to provide my tax info. Is this legit?
We know it can be concerning to receive a notice asking for your personal information, but Venmo does need you to provide your tax info.
The IRS is lowering the federal reporting threshold for the 2023 tax year. To help ensure that you can continue collecting and accessing payments for goods and services on Venmo once the threshold lowers, we’re asking individuals who haven’t provided their tax info to do so. The IRS initially planned to implement a lower reporting threshold for 2022 but delayed the implementation for one year. Learn more about taxes for 2022 here.
Just follow the prompts and notifications in your Venmo app, or look for “Identity Verification” in your app's Settings to complete this process. We’ll never ask you to send your personal information or documents via email.
If you’re ever uncertain whether an email you received is a legitimate communication from Venmo, visit our Security page for more information.
Why am I being required to provide my taxpayer information?
In compliance with federal IRS reporting requirements, Venmo needs to confirm the taxpayer information of any business or individual who receives payments for sales of goods and services in excess of federal or state reporting thresholds. You can learn more about this requirement and how it may affect you here.
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.