Yes, Zillow reports rental income to the IRS if payments are processed through the Zillow Rent Payments platform and meet specific thresholds. Zillow acts as a third-party payment processor and may issue a Form 1099-K to both the landlord and the IRS.
ALL payments received through the Zillow Rent Payments platform are reportable payments. IRS guidelines require the total gross amount of all payments received through the Zillow Rent Payments platform to be reported on Form 1099-K.
More than 140,000 renters have already chosen to build credit through Zillow by reporting their on-time rent payments to major credit bureaus — and starting in November 2025, every renter will be able to do the same.
If you own rental real estate, you should be aware of your federal tax responsibilities. All rental income must be reported on your tax return, and in general the associated expenses can be deducted from your rental income.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Reporting cash payments
A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent: In one lump sum. In two or more related payments within 24 hours. For example, a 24-hour period is 11 a.m. Tuesday to 11 a.m. Wednesday.
For every account that meets the Form 1099-K requirements, including non-profits, the IRS requires Square to report this information. According to the IRS, gross income is defined as all income from whatever source derived an individual or entity has received throughout the calendar year.
Ways the IRS can find out about rental income include routing tax audits, real estate paperwork and public records, and information from a whistleblower.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
Renters have the option to upload as many as five documents to verify their income. These documents could include paystubs, W2 statements, bank statements, employment offer letters, rental assistance payments documentation (such as tenant-based vouchers), and other types of verification.
According to Zillow survey data, 84% of renters use online resources in their search. * When you list a rental property on Zillow, you tap into our vast audience of 34 million monthly visitors, making it easier to find your perfect renter.
ALL payments received through the Zillow Rent Payments platform are reportable payments. IRS guidelines require the total gross amount of all payments received through the Zillow Rent Payments platform to be reported on Form 1099-K.
In the most serious cases of IRS audit unreported income, the government may pursue criminal charges. This is rare, but when it happens, the conviction rate is high. Criminal charges require proof of “willful” violation of a known legal duty.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.
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Property tax records: The IRS can cross-check property tax records to see who owns rental property and whether they're paying taxes on that income.
A 1099-K form is the information return that is given to the IRS and qualifying customers and summarizes gross payment transactions for US account holders. The IRS requires Payment Settlement Entities, such as Zillow, to report the payment volume received by U.S. account holders.
Square sends a Form 1099-K to sellers who meet IRS thresholds. For the 2024 tax year, if you process more than $5,000 in payments and have at least one transaction, you'll receive a 1099-K by January 31, 2025. For 2025 tax year filings, the threshold drops to $2,500.