I handle the finances for my daughters travel softball team. I receive monthly dues from parents of my child's softball team over the course of the year via Venmo. I don't keep any of the money and just pay out bills/costs for the team for equipment, tournaments, training facilities etc.. . Am I going to receive a 1099 on thousands of dollars and owe taxes on the amount that I was Venmo'd throughout the year?
Hi Shane,
This is an excellent question. Venmo is a third party payment processor. Depending upon how you are set up, you might not get a 1099-K. A 1099-K will trigger for all payments over $600. Then the IRS will get alert by the payment processor. So based upon what you are providing, it would not appear that you are going to get a 1099-K. As far as a 1099-NEC, this is for someone you work independently as a contractor. You are probably not a contractor to Venmo which I have not even heard of anyone able to do so. I did find some resource about venmo. See below and hopefully this helps. Happy holidays.
https://www.keepertax.com/posts/venmo-1099