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0 pointsHarryHirsch3y ago0 comments

Venmo will happily send you a 1099 form if it's above the 600 dollar threshold. We have Joe Biden to thank for that. It used to be higher.

0 comments

vmception3y ago

A form doesn’t mean a tax is due

It means a transaction was reported and that you better have a good story about why the tax isn’t due and why you didn’t report it on your own forms

The people that are worried about the venmo 1099 are the people that have not been doing a lot more under the table

(Not to invalidate the rest of the population that is just irrationally afraid of tax collectors)

giantg23y ago

I'm not sure that's true. They are only supposed to report on a 1099 if they know it's earned income, not just a transfer. If they're reporting mere transfers to the IRS, then that's a problem.

That said, based on personal experience, I don't think Venmo is sending 1099s to everyone above that cumulative amount. I do believe they categorize transfers based on personal or commercial use. I expect a 1099 to be issued only for the commercial transfers.

vmception3y ago

Transaction is the word I use, not transfer, just in case you mentioned transfer for some other reason. My reason is deliberate. Some kinds of transactions are tax events, others aren’t. Venmo has no way of knowing. Anybody doing automated 1099s has no way of knowing.

1099s just tell the IRS to look for a tax filing from the same tax ID that matches.

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oh_sigh3y ago

The 1099 is for sales of goods and services. Your friend loaning you $1200 is not a sale of a good or service.

j / k navigate · click thread line to collapse

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vmception3y ago

A form doesn’t mean a tax is due

It means a transaction was reported and that you better have a good story about why the tax isn’t due and why you didn’t report it on your own forms

The people that are worried about the venmo 1099 are the people that have not been doing a lot more under the table

(Not to invalidate the rest of the population that is just irrationally afraid of tax collectors)

giantg23y ago

I'm not sure that's true. They are only supposed to report on a 1099 if they know it's earned income, not just a transfer. If they're reporting mere transfers to the IRS, then that's a problem.

vmception3y ago

1099s just tell the IRS to look for a tax filing from the same tax ID that matches.

1 more reply

oh_sigh3y ago

The 1099 is for sales of goods and services. Your friend loaning you $1200 is not a sale of a good or service.

j / k navigate · click thread line to collapse