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December 30, 2021
Question

New Venmo /P2P Tax Law Question for Independent Contractors

  • December 30, 2021
  • 1 reply
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I own a salon studio and use Venmo for business transactions. The previous threshold was over $20k or 200+ transactions would automatically be reported to the IRS (if I understood correctly). I know I cross that threshold so I always report my income from Venmo, however with the new "Goods & Services" toggle feature, I tell my clients not to turn that on when paying me. 

My question is, if I have already been reporting my income on Venmo anyways, will anything change for me with the new $600 law (tax-wise)? I'm debating removing Venmo from my list of payment options but if nothing will change for me since I already report my Venmo income, then I'd like to continue to offer my clients the convenience of using it.

1 reply

December 30, 2021

If you are correctly reporting all of your income, nothing changes for you.