Venmo, PayPal & Taxes: What You Need to Know About 1099-Ks!

Do you use a cash app for nonbusiness payments? It could be Venmo, PayPal or another cash payment app. If so, pay attention. Nonbusiness payments, such as reimbursing a friend for your share of dinner, should be marked as personal at the time of payment. Otherwise, you could receive a Form 1099-K (Payment Card and Third Party Network Transactions), intended for reporting business transactions. Fortunately, the One Big Beautiful Bill Act returns the threshold for issuing the form to $20,000 from more than 200 transactions during the year, retroactive to 2021. The threshold had been scheduled to be $2,500 for 2025 and only $600 for 2026 and beyond, regardless of the number of transactions.