Venmo tax reporting is the new hot topic this year. The Internal Revenue Service has issued some new rules for reporting business income through payment services such as Venmo, PayPal, CashApp, and other third-party payment processors and it has left many taxpayers with a lot of questions. We are going to answer some of them for you. Let’s get started.
What is Venmo Tax?
Venmo Tax is a new 1099-K reporting rule that requires certain transactions made through Venmo to be reported to the Internal Revenue Service (IRS). It applies to any business transactions made through Venmo over $600 for goods and services.