Ask Maxi · Your return
I got paid through Venmo and PayPal. Is that taxable?
Yes. Income is taxable because it is income, not because a form shows up. Money for work you did is reportable whether it arrived by check, cash, Zelle, Venmo or a card.
The form rules are separate and have moved around. A payment app sends a 1099-K once you cross its reporting threshold for payments for goods and services. Personal transfers — your friend paying you back for dinner — are not business income and should not be marked as goods and services.
Two things that save you grief:
- Keep business payments in a business account or at least a business profile on the app, so your own records separate the gift from the gig.
- When a 1099-K does arrive, check it against your own numbers. The form reports gross, before fees and refunds, so it almost never matches your deposits.
Report from your records, reconcile to the forms, and keep the proof of what the difference was.
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