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My roommate sends me $700 via Venmo every month. I funnel it directly to the landlord in a direct deposit on the same day. It's frustrating to realize these tra
by vngzs 5y ago
My roommate sends me $700 via Venmo every month. I funnel it directly to the landlord in a direct deposit on the same day. It's frustrating to realize these transactions are going to be clearly reported as income, because I have never received income from Venmo - all I do with it is split bills. I realize I can probably sort this out with the IRS, but it seems relatively inappropriate that I would have to do that in this situation.
- lotsofpulp 5y agoThey will not be assuming your roommate designates them properly: >It does not apply if a person is using the service to send someone a gift or pay someone back for buying a dinner. According to some payment providers, they will be asking for more information about transactions to see which category the transactions fall in
- vngzs 5y agoI was concerned because I couldn't find the specifics on what payment tags would lead to income reporting. Here's a better article that addresses that clarification in specific terms [0]: > It’s important to note that this change — which will be applied during 2022’s tax year and moving forward — applies only to payments received for sales of goods and services, and not to friends and family payments. [0]: https://finance.yahoo.com/news/tax-law-sell-more-600-154820572.html https://finance.yahoo.com/news/tax-law-sell-more-600-1548205...
- Talanes 5y ago>Venmo describes a “goods and services” payment as when senders tag a purchase as such, whether it’s for a product you sell or a service you provide. I think this is the most relevant line. Goods and services is a specific opt-in tag. All the other quotes left it unclear if the completely fanciful descriptions that get put into Venmo payments were actually going to become tax-reporting criteria.