I got a 1040 from CashApp but it was all gifts or repayments, not from a business or any profits. Do I still need to claim this?

[shark_water]

I received a 1040 form from cashapp because i received over 12,000 but it was all as gifts or repayments. Do I have to pay taxes on gifts? This is really confusing. Im also not even seeing a 1040 form option on the main screen.

[VolvoGirl]

You mean you got a 1099 from cash app, not a 1040.  Was it a 1099K?  

[ErnieS0]

Generally, if you receive a tax form you should add it to your tax return otherwise your tax return may not match IRS computer data and the auditors will wonder why you left out the form.

As Tax Champ @VolvoGirl said, you probably received Form 1099-K. If the amount was all gifts and repayments, add the form to your take return and subtract it to show you made no money.

Gifts are not taxable to the receiver.

Here’s what to do:

1. Click Federal in the left column
2. Click Wages & Income 
3. Scroll down to Less Common Income. Tap Show more
4. Select Miscellaneous Income, 1099-A, 1099-C
5. Select Other reportable income
6. Say Yes to Any Other Taxable Income?
7. Enter a description (1099-K from CashApp) and amount ($xxx)
8. Enter a second entry for the same amount, but negative. For description say “gifts and repayments” and the amount (-$xxx)

[angelsoflove]

Actually, CashApp is actually sending people a 1040 form in there tax section of their app. It is not a 1099-k. On the 1040, CashApp has line 12 (standard deduction) filled in, and like 14 as well here.

I think this is just a marketing scheme to get to use CashApp for doing taxes, but not 100% sure here..

(PS. I do others taxes. This is really unusual, and not a reported tax form they are doing..

[Lbdrywall]

Actually Cashapp offers to do taxes which provides the 1040 form; however, Cashapp in fact does issue a 1099-K to anyone who has a business Cashapp account.  So yes a person will receive a 1099-K if they have a business account and received payments in excess of $600.