Hi. I regularly send family (and sometimes friends) money ($25 min up to $1,000 max) through Zelle, CashApp, and Venmo. Do I have to pay taxes on my own money that's sent as a gift or to pay half of a joint bill or even from one account to another at a different institution? I do not receive money appropriated as income via these apps. I assume I will receive a 1099-K but since it's not income-related, how do I file so I WILL NOT be taxed on it?
You do not have to pay taxes on money that's sent to you as a gift, to pay half of a joint bill, or from one of your accounts to another account at a different institution. This does not necessarily mean it will not get reported to the IRS. If it gets reported to IRS (you receive a 1099), you will need to report it on your tax return. You still will not pay taxes on it if it is not income.
Ok, just to be clear because you worded your response differently than my question, regardless of whether I am the one sending or receiving money for the same purposes (a gift, to pay half of a joint bill, or from one of my accounts to another account at a different institution, etc.), I will not have to pay taxes on it since it's not income? However, I may still receive a 1099 because the companies may likely report a transfer of money occurred and I would have to include that in my tax return - - though not as income.