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. Learn more about what that means for you here.
Our parent company, PayPal, processes all tax servicing and documentation (including forms like a 1099-K) 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, read on for more information.
For more information about acceptable use of your Venmo account, please review the Venmo User Agreement.
There will be some important changes to tax reporting thresholds for the 2022 tax year. 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 2021 tax year, Venmo will issue a Form 1099-K to business profile owners who have passed the IRS reporting threshold for their state of residence:
- For most states, the threshold is $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
- 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
Individuals who have sold cryptocurrency on Venmo during the 2021 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 by January 31st and Gains/Losses statements are made available by February 15th.
We’ll notify you in the Venmo app and send an email to the address on file with your account when your tax documents are available. Once you receive the notifications about your tax documents, you can follow the prompts to download them from your mobile device. Alternatively, you can select “Tax Documents” from your Settings after signing in to your account at venmo.com
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 confirm 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 to confirm your tax info.
For the 2022 tax year, the IRS is lowering the federal reporting threshold. 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 confirmed their tax info to do so. Learn more about taxes for 2022 here.
Just follow the prompts and notifications in your Venmo app, or look for “Identity Verification” in your 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 confirm my taxpayer information?
In compliance with the new 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.