Unpacking the Venmo Tax: What You Need to Know for 2025
Join Chris Picciurro, CPA, and John Tripolsky as they explain the so-called "Venmo Tax" and how third-party payment platforms will impact your tax reporting. Learn about the changing thresholds for 1099-K forms and what everyday Venmo users need to know.
KEY TAKEAWAYS:
- 2025 Threshold: Only $2,500 in transactions triggers a 1099-K form
- 2026 Threshold: Set to drop further to just $600
- Taxable vs. Non-Taxable: Not all Venmo transactions are taxable income
- Common Triggers: Splitting bills, group purchases, and gifts can all generate forms
- Handling Incorrect 1099-Ks: How to properly report forms received in error
EPISODE BREAKDOWN:
- Understanding Third-Party Settlement Organizations (TPSOs)
- The Changing 1099-K Thresholds (2023-2026)
- Which Transactions Are Actually Taxable
- Everyday Examples That Can Trigger Forms
- How to Handle Incorrect 1099-K Forms
SPONSORED BY:
Legacy Lock
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- (00:00) - Understanding IRS Rules for Venmo and Similar Platforms
- (04:33) - Understanding the Implications of the Venmo Tax
- (09:58) - The Rise of Digital Payments and Their Everyday Impact
- (13:41) - Understanding 1099-K Threshold Changes and Their Implications
- (15:27) - Understanding 1099K Reporting for Personal and Business Transactions
- (21:07) - The Impact of Cashless Transactions on Tax Filing Complexity
- (21:08) - Handling 1099K Errors in Personal Transactions
- (22:46) - The Complexities of Tax Reporting and Financial Advice
