If a friend pays me through venmo to purchase an item that he is unable to do himself, will it affect my 1099-k status. If so what do I need to do to rectify the situation.
Hi Anggiew65, thanks for posting the question.
Make sure payments to you or others are properly classified as an amount paid for something other than goods or services where possible. On sites like PayPal and Venmo, a payment can be designated whether it is to family and friends or a business transaction for goods and services. This designation will determine if the transaction(s) result in the issuance of a Form 1099-K.
TAS Tax Tip: Use caution when paying or receiving payments from friends or family members using cash payment apps
You can check with the friend if he made such designation when effecting payment, and also keeps good records for future tax reference.
Hope this helps.
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