Venmo is a popular app for all kinds of people. It’s used for quick payments between friends, transactions related to chores and services, and buying and selling certain items.
However, you may wonder: if you make money using Venmo, will your earnings be reported to the IRS? I’ve researched this topic for you, so keep reading to learn what I discovered!
Does Venmo Report to the IRS in 2023?
Venmo is required to report the earnings of certain users to the IRS in 2023. If you use your Venmo account to sell goods and services, and you earn $600 or more in a year, this income will be reported to the IRS. You can download tax statements from the official Venmo app.
Using Venmo comes with plenty of rules and regulations regarding taxes and transaction history, so keep reading to make sure you know what to expect!
Will Venmo Send Users a 1099 Form?
Venmo will send a 1099-K form if your goods and services sales for the year equaled or exceeded a total of $600.
Note that this only applies to business accounts with Venmo, rather than personal funds you receive from friends and family.
Keep in mind, though, that not every transaction shown on the form is always subject to income tax.
Therefore, to find out which payments are subject to income tax, speak to a tax representative.
Will I Be Taxed on Venmo?
If you use Venmo to receive funds for goods and services, the company is required to report your earnings to the IRS if you made $600 or more that year using the app.
This means that in addition to sending you a 1099 form, Venmo will report your earnings to the IRS. Afterward, you will need to account for your Venmo earnings when you file your taxes.
If you aren’t sure whether certain earnings or transactions in your history are subject to income tax, you can speak to a tax representative.
How Do I Hide My Income on Venmo?
When using Venmo, you won’t be able to hide the amount of money you make from the app itself.
Therefore, if your income on Venmo equals or exceeds $600 for the year, it will be reported to the IRS.
Although you can’t delete your Venmo transaction history, you can make all of your past, present, and future transactions private, allowing you to hide your activity from onlookers.
Can I Use Venmo Anonymously?
You can make private transactions on Venmo and change your username so that the public doesn’t know who you are.
However, Venmo will need access to your US bank account, which means the company will know your name and other information.
Unfortunately, there is no way to use Venmo anonymously, since you need to provide personal identification to Venmo in order to sign in.
Do Venmo Transactions Show up on My Bank Account?
If you are sending money through Venmo and the funds are coming from your linked bank account, these records will show up on your bank statement.
However, if you only use your Venmo account balance to send and receive money, the records will only be shown in your account history.
In order to store and send money using your Venmo balance, you will need to verify your identity using your SSN (do this safely within the Venmo app).
How Do I Get My Tax Statement From Venmo?
Venmo automatically sends users a 1099-K form for the tax year when they make more than $600 for the year on their business account.
You can access your 1099-K by January 31 and your Gains/Losses (for cryptocurrency) statement by February 15th.
To gain access to these documents, you can follow the link sent to you from Venmo through email or in the official app in order to download them.
As well, you can go to “Tax Documents” in your Venmo settings.
Can You Delete Your Venmo Transaction History?
You can’t delete your Venmo transaction history, but if you’d like to hide it from friends and family, you can make your account private.
However, note that Venmo will always have access to your account activity and history.
Therefore, review Venmo’s user agreement to make sure you are following legal guidelines in your use of the app.
Venmo is required by the IRS to report income history if a user who has a business account earns over $600 in a year from payments for goods and services.
You cannot use Venmo anonymously or delete your transaction history, so account for income made through Venmo when the tax season comes around. You can download your tax statements from the Venmo app.