- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Tax, legal baws, help on use of Venmo, paypal etc
Posted on 8/16/22 at 10:34 am
Posted on 8/16/22 at 10:34 am
Just curious from tax and legal experts, is it better to pay “friends and family” with PayPal vs Venmo versus Zelle etc? Should I spread them among different apps to avoid government scrutiny? Not doing anything illegal, but do send a good bit for rent, lawn guy, etc..thoughts?
6
Posted on 8/16/22 at 10:43 am to secfballfan
Once you hit $600 of income on any one app, it will be reported via 1099K and taxed accordingly. F&F only avoids the transfer fees, but will still be accrued to income I believe.
Sell more than $600 on ebay and expect a statement from them as well.
This will hurt so many small businesses unaware of this change, thankfully we will have plenty of new IRS agents to enforce this.
Sell more than $600 on ebay and expect a statement from them as well.
This will hurt so many small businesses unaware of this change, thankfully we will have plenty of new IRS agents to enforce this.
Posted on 8/16/22 at 10:43 am to secfballfan
not your job to report someone else's potential income
Posted on 8/16/22 at 11:24 am to secfballfan
With paypal only your goods and services income is reported on 1099. Friends and Family is not reported, however if your volume exceeds a certain thresh hold paypal will not allow you to receive friends and family payments.
Posted on 8/16/22 at 11:42 am to secfballfan
quote:
Just curious from tax and legal experts, is it better to pay “friends and family” with PayPal vs Venmo versus Zelle etc? Should I spread them among different apps to avoid government scrutiny? Not doing anything illegal, but do send a good bit for rent, lawn guy, etc..thoughts?
If you are sending money, it doesn't matter. It's the recievers responsibility to declare their income truthfully. If you are receiving money, you'll recieve a 1099 with the amount of money you recieved. That doesn't mean it's income and therefore taxable.
Posted on 8/16/22 at 12:22 pm to Mingo Was His NameO
So what about bank wires and eft’s? Are they closely tracked?
Posted on 8/16/22 at 4:11 pm to secfballfan
quote:
Not doing anything illegal
quote:
31 U.S. Code § 5324 - Structuring transactions to evade reporting requirement prohibited
Posted on 8/16/22 at 4:13 pm to Geauxkart
quote:
Once you hit $600 of income on any one app, it will be reported via 1099K
Yes
quote:
and taxed accordingly
No. The 1099 just alerts the IRS to look for the receipts to be reported on your tax returns. You can still report the transaction on your return in a way that shows that the transaction did not result in taxable income (i.e. sale offset by basis, etc.)
Posted on 8/16/22 at 4:22 pm to secfballfan
I mentioned the surveillance state we currently live in and some of the kids here were dismissive. What in hell do you think the new 87K IRS guys are going to be involved with?...Every financial transaction bank, ATM, cash apps out there.
Posted on 8/16/22 at 4:24 pm to SalE
quote:
I mentioned the surveillance state we currently live in and some of the kids here were dismissive. What in hell do you think the new 87K IRS guys are going to be involved with?...Every financial transaction bank, ATM, cash apps out there.
The same things that are taxable have been taxable for decades. If they are stopping tax evasion, why do you have a problem with that?
Posted on 8/16/22 at 4:25 pm to Geauxkart
quote:
Sell more than $600 on ebay and expect a statement from them as well.
Just because you didn't get a statement until $20,000 before, didn't mean it wasn't tracked and or your liability to file taxes on it. Anyone using the platform beyond just off-loading some home items already knew this an accounted for it.
If you're just selling a few things to clean up the house, take your 1099 and write off the same amount as COGS. No issue.
This post was edited on 8/16/22 at 4:25 pm
Posted on 8/16/22 at 4:39 pm to Geauxkart
quote:
Once you hit $600 of income on any one app, it will be reported via 1099K and taxed accordingly. F&F only avoids the transfer fees, but will still be accrued to income I believe.
The following is not tax/financial advice- just copy/pasted from the venmo and paypal FAQ section on their websites.
From Venmo: 1. What are the new reporting requirements exactly?
This requirement only pertains to payments received for sales of goods and services and DOES NOT apply to friends and family payments.
Starting the 2022 tax year, the IRS will require reporting of payment transactions for goods and services sold that meets or exceeds $600 in a calendar year. Anyone who receives at least $600 in payments for goods and services through Venmo, or any other payment app, can expect to receive a Form 1099-K. While Venmo is required to send this form to qualifying users, it’s worth noting that certain amounts included on the form (like refunds) may not be subject to income tax.
To determine whether specific amounts on your 1099-K are classified as taxable income, it’s best to speak with a tax professional.
From PayPal: All US payment processors, including PayPal, must provide information to the US Internal Revenue Service (IRS) about customers who receive payments for the sale of goods and services.
Accordingly, PayPal tracks the total payment volume on your account to determine whether it meets the IRS threshold in a calendar year.
Customers will be required to provide tax information like an Employer Identification Number (EIN), Social Security Number (SSN), or an Individual Taxpayer Identification Number (iTIN), if they haven’t already provided it when they approach USD 600.00 for the sale of goods and services during 2022.
Both are very clear that the $600 reporting thresholds apply to sales of goods and services. Venmo explicitly says friends and family payments aren't considered.
Posted on 8/16/22 at 10:32 pm to DallasTiger45
We use Venmo as a way to collect the donations from our st Jude fundraising projects. I’m not reporting squat.
Posted on 8/17/22 at 9:06 am to DallasTiger45
quote:
Both are very clear that the $600 reporting thresholds apply to sales of goods and services. Venmo explicitly says friends and family payments aren't considered.
I guess I just don't understand. Why couldn't someone just say, "that's my friend or family." for every transaction, no matter if it was for a good or service or not? How would there be any way to differentiate between the two?
Posted on 8/17/22 at 9:09 am to Triple Bogey
quote:
I guess I just don't understand. Why couldn't someone just say, "that's my friend or family." for every transaction, no matter if it was for a good or service or not? How would there be any way to differentiate between the two?
My barber takes Venmo. I guess the 20 people a day that pay him the same amount are all friends and family just paying him back
Posted on 8/17/22 at 9:11 am to Mingo Was His NameO
quote:
My barber takes Venmo. I guess the 20 people a day that pay him the same amount are all friends and family just paying him back
Why couldn't they be? How would there be any way to actually prove they weren't? Just by the amount of transactions?
Posted on 8/17/22 at 9:13 am to Triple Bogey
quote:
Why couldn't they be? How would there be any way to actually prove they weren't? Just by the amount of transactions?
Why don't you try it and let me know how the audit turns out for you
Posted on 8/17/22 at 9:15 am to Mingo Was His NameO
quote:
Why don't you try it and let me know how the audit turns out for you
Ok, Mr IRS agent.
Posted on 8/17/22 at 9:17 am to Triple Bogey
quote:
Ok, Mr IRS agent.
Stupid response is stupid. I'm just telling you what's going to happen
Posted on 8/17/22 at 9:35 am to Triple Bogey
IRS Agent: I see you had 20 transactions at $20 every day for every weekday of 2022.
Triple Bogey: That was just my friends paying me back
IRS Agent: Really, what were they paying you back for?
Triple Bogey: Things
IRS Agent: Cool, bend over.
People over complicate this stuff. You want to hide it, take cash. You want to have to file legitimately, take the electronic payments. Technology creates convenience, but with that, accountability.
I don't say all this as some IRS worshipper either. I say it as someone who gets a 1099 every year from multiple marketplaces and spent hours with a bookkeeper getting it right for filing the first time it happened.
Triple Bogey: That was just my friends paying me back
IRS Agent: Really, what were they paying you back for?
Triple Bogey: Things
IRS Agent: Cool, bend over.
People over complicate this stuff. You want to hide it, take cash. You want to have to file legitimately, take the electronic payments. Technology creates convenience, but with that, accountability.
I don't say all this as some IRS worshipper either. I say it as someone who gets a 1099 every year from multiple marketplaces and spent hours with a bookkeeper getting it right for filing the first time it happened.
Page 1 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News