Venmo 1099 Taxes: What You Need to Know as a Freelancer or Independent Contractor
The Gist
You do not owe taxes on personal Venmo transactions, only business transactions or those labeled as “Goods & Services.”
If you use Venmo for your business payments and earn at least $20,000 or make at least 200 transactions, Venmo will generate a 1099 form (1099-K).
This threshold will be lowered to $600 for the 2023 tax year.
As an independent worker, it’s important to track all your earnings and expenses.
The best way to track your earnings and expenses is with the Stride App, an easy-to-use, all-in-one app that is an essential tool for any independent worker.
In This Article
In Short
Are you an independent worker who receives business payments through the peer-to-peer (P2P) payment app Venmo? There may be some major changes coming to your tax situation in the 2023 tax year. This means more paperwork to keep track of, including your Venmo 1099 — if you’ve earned at least $600 using the app.
If you’ve never filed taxes using a Venmo 1099, there are a few things to look out for. But most importantly, you’ll want to stay on top of your earnings and expenses so you’re not surprised when tax season comes.
Read on to see if your business meets Venmo 1099 requirements and how the Stride App can help you track earnings and expenses and maximize your tax savings.
Will Venmo Send Me a 1099?
Venmo does not mail 1099 forms directly to you. That means you have to use the Venmo app to access your Venmo 1099 tax form. Typically, these forms are available on Jan. 31 of each year.
To find your Venmo 1099 form:
Open the Venmo App
Sign into your Venmo account
Select “Settings”
Choose “Tax Documents”
Print, save, or send your Venmo 1099
Starting with the 2022 tax year, Venmo will generate a 1099 if you have collected at least $600 or completed at least 200 business transactions using the app. Technically, you owe taxes on any income above $400, so we recommend staying on top of your quarterly tax payments to avoid costly audits down the road.
If Venmo generates a 1099, they will send a duplicate version to the IRS. Because Venmo 1099 requirements changed recently — lowering the threshold of reportable earnings from $20,000 to $600 — far more small businesses will be included in this mandatory reporting.
This means you will be on the hook for all applicable taxes owed by your business, and any shortfall could result in fines, audits, or other penalties. For this reason, it’s important to stay safe and account for all of your earnings throughout the year, even small payments.
To maximize your tax savings as an independent contractor or freelancer, be sure to track your earnings and expenses using the Stride App. This easy-to-use app will save you possible headaches when tax season rolls around by keeping your earnings and expenses in one place.
Will Venmo Send Me a 1099 If I Earned Less Than $600?
As stated above, Venmo 1099 requirements state that if you earn more than $600, a Venmo 1099 will be generated for your account. The 1099 will not be mailed to you, but can be accessed via the Venmo app.
If you’ve earned less than $600, Venmo will not generate a 1099 form for you, so you’ll be on the hook for tracking your own business earnings and expenses.
How Do I Report My Venmo 1099 Earnings on My Taxes?
As with other freelance or independent work income, the amount reported on your Venmo 1099 will be input into Schedule C, which is the main tax form you’ll use to determine your gross income. Your gross income is the total pre-tax, pre-deduction amount of all the money you’ve earned in the past year.
Once you’ve combined all of your 1099, freelance, and other income, you’ll subtract expenses, tax credits, and various other deductions to arrive at your “taxable income.” This is the total amount of your earnings that you owe taxes on.
Where Can I Find the Venmo 1099 Form?
Once again, unlike some vendors or clients, Venmo will not send you a 1099 form in the mail. That means you will have to download the document directly from the app. Having the proper 1099 form can save you headaches down the line. And keep in mind that Venmo sends a duplicate copy of your 1099 directly to the IRS.
What’s the Best Way to Maximize My Tax Savings as a Business That Uses Venmo for Payments?
If you’re using Venmo to conduct your business, it’s important to keep track of your earnings. Stay on top of your quarterly estimated tax payments (typically due on April 15, June 15, Sept. 15, and Jan. 15 of the following year), and make certain you’re tracking your expenses.
There’s a lot to know about taxes as an independent 1099 worker, whether you’re planning to file yourself or pay a tax professional to prepare your taxes for you. The best way to maximize your tax savings is to track your earnings, expenses, and mileage with the Stride App.
If your business receives a Venmo 1099 or uses any other P2P payment apps (like Paypal or CashApp), you’ll want to track your earnings and expenses to avoid any unpleasant surprises (like large tax payments, fines, or fees) when tax season rolls around.
Let the Stride App handle those small details so you can get back to business!