topic Personal Cash App Payments in Get your taxes done using TurboTax

Personal Cash App Payments

Keith60 — Tue, 24 Feb 2026 06:40:26 GMT

I am sending money to my friend using Cash App personal account, so my friend can pay their medical, legal, and rent expenses that they have been incurring. Using Cash App, I send the money directly to my friend, then my friend pays the providers directly. These amounts exceed five figures $xx,xxx. This is not income to my friend. Will either of us need to account for these money amounts on our tax returns? Will Cash App be required to send a 1099 form to my friend even though this is not income?

Re: Personal Cash App Payments

ElizabethW2 — Wed, 28 Jun 2023 18:14:04 GMT

You are correct in that the money you are giving your friend is not income to them. However, if that amount exceeds the annual gift exclusion ($17,000 for 2023), you will have a gift tax reporting issue.

The information I have found from CashApp is that they will adhere to IRS guidelines and issue the 1099K to business accounts for 2023. If you account is set up as a personal, not business, you shouldn't receive the 1099.

https://cash.app/help/US/EN-US/6524-form-1099k-qualifications#:~:text=Cash%20App%20is%20required%20to,is%20processed%20in%20card%20payments.&text=Illinois-,Cash%20App%20is%20required%20to%20issue%20a%20Form%201099%2DK,and%20more%20than%203%20transactions.

If this information was helpful, please indicate by clicking the thumbs up below.

Elizabeth W, EA

Re: Personal Cash App Payments

BettieG — Wed, 28 Jun 2023 18:15:29 GMT

If you have set up your CashApp for these payments as designated for between friends (personal transfers), you will not likely receive a Form 1099-K. Should a 1099-K be issued nevertheless, you should contact CashApp and clarify that these are not payments for goods or services (but payments between friends), and ask that a corrected 1099-K be issued.

You are correct that this is not income to your friend nor deductible by you. Nevertheless, depending upon the amount of the gift, you may incur a gift tax.

Re: Personal Cash App Payments

Jackstar221 — Wed, 28 Jun 2023 20:12:35 GMT

Hi,

Since your friend is the person who actually ended up paying for the medical, rent, and legal expenses, he/she can deduct the expenses paid for medical expenses as an itemized deduction, if he/she has enough deductions to itemize. He/she can claim the rent and legal expenses if he/she does indeed have a business to deduct them with.

It is possible that cash app may send your friend a 1099-NEC or 1099-MISC, which would require your friend to report the income. However, that would be a question for cash app regarding if they will indeed send your friend a 1099.

Here is a link for contact information regarding cash app:

https://cash.app/legal/us/en-

us/cashappterms#:~:text=You%20can%20also%20call%20us,or%20full%20debit%20card%20number

Thank you,

John

CPA