Well anyone who uses P2P payment platforms be aware that the IRS is cracking down and has implemented a new $600 reporting threshold for all P2P platforms. That’s right: If you’re taking in more than $600 in business income via Venmo or any P2P platform—regardless of the total number of transactions—you’re going to receive Form 1099-K at the end of the 2023 tax year. The P2P payment threshold only applies to business income—like if you’re a hairdresser and get paid through Venmo. How does the IRS know if it’s taxable or not? If you send someone money on a P2P platform, you generally have the option to categorize the transfer as going toward either “friends or family” or “goods and services”. Don't try to pull a fast one on the IRS if you omit more than 25% of your income they will audit you, so be honest when using P2P platforms.
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