Family and Friends Payments

Forum|Forum|3 years ago
August 31, 2022
1 reply
26 views

If friends and family members have paid me over $600 using the Family and Friends option on PayPal, not for goods and services, do I have to claim it on my taxes?

Donna F 77

Level 6

Payments from your friends and family that are not for services rendered by you or items sold by you are not taxable on your tax return.

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tlabors

Level 2

yes, thank you for answering this question!!!! how do you prove it was from friends and family? what happens to the friends and family for giving it t us?

Donna F 77

Level 6

If it's not business income to you, it is not a deductible expense to your friends and/or family. There is no consequence to using these forms of electronic payments for normal non-business transactions. If you were to receive a tax form from these transactions that are non-business you would be able to show them on your tax return and also show a corresponding negative amount to remove them from being taxed. However, I do not think you will need to worry about this.

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