If you used PayPal, Venmo or CashApp in 2025, the IRS has a warning for you
Source
American Shipper
Post Date
02/06/2026
If you received a digital payment for part-time work, gig activities or sales of goods and services in 2025, the IRS says you must claim it on your taxes ?even if the payment was received through a service like PayPal, Venmo, Cash App and more. ? payment app or online marketplace is required to s you a Form 1099-K if the payments you received for goods or services total over $20,000 in more than 200 transactions,?the agency noted on its website. ?owever, they may s you a Form 1099-K with lower amounts and/or transactions.?
A 1099-K form will be issued to you ?y payment card companies for any amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year,?the IRS said.
According to the IRS website, third-party settlement organizations (payment apps and online marketplaces) are required to report payments over that $20,000 amount, but you may receive a Form 1099-K even when total payments or transactions are less than the reporting threshold.
?o matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return,?the agency explained. ?his includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide.?
Money received from fris and family as a gift or repayment for a personal expense should not be reported, however, because these payments are not taxable income.
?or example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for rent or a household bill,?the IRS stated. ?e sure to note these types of payments as non-business in the payment apps when possible.?
