1099-K for Family Transactions

If it isn't income, it shouldn't be reported. There will be lots of problems with 1099-K reports next year. We'll have to see how things play out. Personally, I expect that the $600 reporting threshhold will be suspended or delayed. But my crystal ball is murky at best, and opaque today.

Thanks Ira. That's helpful.

Maybe they shouldn't be making payments through Venmo.

Venmo is mostly used by people to share expenses and reimburse each other, none of which is taxable. There is also Venmo for business which accepts credit cards and charges a commission but that's much less common.

Even if they send a 1099-K that doesn't mean you have taxable income:

John:

From that article you linked to:

?Like my wife often receives Venmo payments from some of her girlfriends for groceries, and she makes those payments. And so that wouldn?t result in any income. And even if my wife got such a form, she could ignore it.?

Is that true. You can totally ignore a 1099-K?

Mel

According to MZB snipped-for-privacy@noway.prudigy.net>:

I guess we'll find out.

The law didn't change the definition of taxable income, only the reporting rules.

There have always been differences between what's on the 1099-K and one's income. For example, if a business allows people to make debit card payments with cash back, the 1099-K will report the full amount, but it subtracts the cash back amounts to get its reportable income.

John: Not questioning any income definitions. But there should be a way to indicate to the IRS that the figure on the 1099k is not income. I would think ignoring it is certain to trigger problems.

Mel