Zelle Payments

[aldo7865]

I occasionally send money to my children and grandchildren by Zelle. I also pay a neighbor to walk my dog from time to time when I am away. Do any of my recipients have any tax liability?

[JBedford]

Hi, @aldo7865 , thanks for the question! To answer your question, bona fide gifts to family are not taxable to the recipient. However, the dog-walking payments are likely taxable income to your neighbor. 

Hope this helps, please let me know if this raises additional questions! 

[aldo7865]

Am I obligated to report this to the IRS, or does Zelle or my bank report this?

[JBedford]

You are not required to report payments. Your neighbor may be required to report the income.