Zelle and Cash App Payments for Personal Use Not Business Use

[vervenboss]

Hello Everyone,

I'm sorry I had to miss the most recent Ask the Experts event. Here's my situation:

My husband is self-employed and there is no official business name. He operates it under his own name. We use QuickBooks to manage his transactions and keep track of our estimated taxes.

Personally, he is my Social Security Representative Payee, meaning each month my Social Security benefit funds are deposited into his personal bank account. He uses Zelle to transfer my money to me each month and I use it to pay bills and buy groceries.

Additionally, our two adult children live with us and contribute a small amount to the rent each month. Each of them sends me the rent money using Cash App. 

Are either of those circumstances considered business transactions for which I'd be liable for taxes and receive a 1099? They are strictly personal transactions not related to a business.

Thanks for your time. Any information is appreciated.

[Bsch4477]

Ideally your apps would separate business from personal payments. If not, it’s your responsibility to keep accurate records to separate them. You will have the opportunity to deduct personal income from the total payments on your return. 

[vervenboss]

Thank you! 🙂

[NCperson]

@vervenboss - Zelle is not subject to 1099 reporting.... per law...

https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs