Tax Implications for Zelle payments

[toastpost89]

I see every other payment app being listed beside zelle regarding $600 income taxes

1. is Zelle a wire transfer?

2. Do you pay taxes when receiving “tips/ splitting the bill” when $600 has been reached on Zelle

3. Will Zelle send a 1099 Form? 

[Laura_CPA]

Hi  toastpost89,

Great question! Zelle works a bit different from the other apps mainly because it is a payment platform. They do not issue a 1099-K Form instead if payments you receive on Zelle are taxable it is your responsibility to report them to the IRS.  The law about the $600 does not apply to Zelle.

Hope this answers your questions, have a good day!