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Sj003
Level 1

Friends and family

How are these payments determines separately.  Does the comment section have to read a gift or repayment to qualify? Or are all friends and family separately from goods and services? Also if I get one can I print out my paypal payments of when I sent out money to show that it isn't extra income?

1 Reply
LouiseS CPA
Employee Tax Expert

Friends and family

Hi Sj003,

  The Venmo payments are identified family or friends or goods or services.  That makes the difference in reporting for the IRS.  They only want to know about goods or services.

 For your PayPay, if people are sending you money, for a shower gift, then you buy the gift or pay for the event, that would zero out the income so you would not have any "profit"  Keeping your Paypal statements for at least three years would be important.

 

  The goal of the new 1099-K reporting is for people selling services or goods.  

 

It sounds like you are not doing either of these so it would not be income according to the IRS.

  I hope that helps,

Thanks for reaching out, Louise

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