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 those who receive payments for the sale of goods or services 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 may receive a Form 1099-MISC, 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?
We’ll notify you when your tax documents are available, and you’ll have the opportunity to download them directly from the Venmo website. You can expect to hear from us sometime in January of the new year.
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.
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.