Yes, you will get a Form 1099-K from Venmo for the 2025 tax year if you received over $20,000 in payments for goods or services AND had over 200 transactions for those goods/services; however, you must report all taxable income regardless of whether you get a form, and some states have lower thresholds. These rules are for business/goods payments, not personal "friends & family" transfers.
Reporting requirements for Venmo users have changed for 2025, with payment apps like Venmo now required to issue a Form 1099-K for users who receive more than $20,000 combined with more than 200 transactions for goods or services within a single tax year.
If you don't end up qualifying to receive tax documents for the year, you can download your Venmo account statements to help you with any other reporting obligations you may have. You may also wish to seek the advice of a licensed tax advisor.
For the 2025 tax year, Venmo will issue Form 1099-K for business payments (goods/services) if you receive over $20,000 AND more than 200 transactions, a return to the previous threshold, excluding personal payments. The IRS delayed the lower $600 threshold, with 2024 being a $5,000 transition year, but for 2025 and beyond, the $20k/200 transaction rule applies federally. You must report all taxable income even if you don't get a form, and some states might have lower rules.
The "Venmo $600 rule" refers to a past IRS tax reporting threshold where platforms like Venmo would send a Form 1099-K for over $600 in goods/services payments; however, this rule was delayed and modified, with a new law returning the reporting threshold for Venmo/PayPal (for tax year 2025 onwards) back to the original $20,000 AND 200 transactions, effectively ending the strict $600 requirement for most users, though some states still have lower thresholds, and personal payments are always excluded.
The reporting threshold for sending Form 1099-K for 2025 is greater than $20,000 from more than 200 transactions. Creating a P2P business account is a good way to avoid intermingling business and personal transactions.
Starting with the 2025 calendar year, the federal reporting threshold for Form 1099-K is more than $20,000 in gross payments and more than 200 transactions.
Even if you're not a business owner or self-employed individual, you can receive a 1099-K if you accept payments by electronic transfer or credit card. This includes peer-to-peer payment platforms like PayPal and Venmo. If you received a 1099-K, here's what you need to know about your tax obligations.
You may receive a Form 1099-K even when total payments or transactions are less than the reporting threshold. No matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return.
Will the IRS catch a missing 1099? The IRS knows about any income that gets reported on a 1099, even if you forgot to include it on your tax return. This is because a business that sends you a Form 1099 also reports the information to the IRS.
We'll notify you in the Venmo app and send an email to the address on file with your account when your tax documents are available. See below for estimated issuance dates for specific forms: 1099-K (for goods and services payments): January 31st. 1099-MISC (for fiat currency rewards): February 15th.
Use your business account for business purposes and your personal account to receive payments for personal transactions. Otherwise, personal payments will end up on your business's Form 1099-K, and you or your tax professional will then have to sort out personal and business payments when preparing your tax return.
If you did not receive rewards, sell or exchange crypto, or receive payments for goods & services in a calendar year, your Venmo activity is not reported to the IRS. In this event, you can view and download your account statements for record-keeping purposes if needed.
Even if you don't receive a 1099-K, but know that you earned money from your freelance, gig work, or self-employment, it must be reported on your tax return. If you don't report earned income, you risk penalties and interest with the IRS and possibly your state.
So, if you get a 1099-K for less than the threshold, don't panic. It doesn't automatically mean you owe taxes on those payments — it just means the payment platform reported your transactions to the IRS (and possibly your state).
A 1099 significantly affects taxes because you're considered self-employed, meaning you pay both income tax and the full self-employment tax (15.3% for Social Security & Medicare), as there's no employer to split it with. This usually means setting aside 25-35% of your income, and you'll likely need to make quarterly estimated tax payments to avoid penalties, though business expense deductions can lower your taxable amount.
Take note that even though Zelle does not report to the IRS, nor does Venmo and Cash App report payments below the threshold, you are still responsible for reporting all business income to the IRS.
This means that, unless your transactions exceed the reporting levels, you won't receive a 1099-K from Venmo or PayPal. However, even if you don't get a 1099-K, you're still responsible for reporting all income you received through these platforms on your tax return.
When you pay a business account, payment tagging is not necessary as PayPal®/Venmo® will issue the 1099-K to the IRS and your recipient since all payments sent to business profiles on PayPal®/Venmo® are tagged as purchases automatically and are therefore considered to be for goods and services.
How to Avoid Unnecessary Tax Reporting on Venmo
The "Venmo $600 rule" refers to a past IRS tax reporting threshold where platforms like Venmo would send a Form 1099-K for over $600 in goods/services payments; however, this rule was delayed and modified, with a new law returning the reporting threshold for Venmo/PayPal (for tax year 2025 onwards) back to the original $20,000 AND 200 transactions, effectively ending the strict $600 requirement for most users, though some states still have lower thresholds, and personal payments are always excluded.
IRS warns Venmo and PayPal users about major tax filing changes ahead of this year's deadline. IRS warns Venmo and PayPal users: The IRS has delayed the $600 reporting threshold for Venmo and PayPal users. For the 2026 tax season, the reporting limit reverts to $20,000 and 200 transactions.
If we've notified you about tax documents for your Venmo profile, you can access and download your tax documents for the previous calendar year in the Venmo app or in your Venmo Tax Document Center on the website. In the Venmo app: Go to Settings. Tap Tax Documents.