If sold something, such as an old, used ATV, with payment of > $600 on Venmo, does this have to be reported as income? Does Venmo provide tax documents?
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1 Replies
John-H2021
Employee Tax Expert
Aug 31, 2022 12:27:09 PM
Yes this income needs to be reported and taxes paid on it. You should receive a 1099-K from Venmo for the amount you received.
There are 2 ways to report the income.
If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken
If it is a business then it would be reported on a schedule C (self-employed income). You would report the 1099 as income and then deduct the expenses you have against making that income.