Used PayPal, Venmo, or Cash App in 2025? The IRS Says You Might Owe Taxes

If you used PayPal, Venmo, or Cash App in 2025, the IRS has a tax reminder you shouldn’t ignore.

Money received through these apps may count as taxable income, even if you didn’t get a tax form.

What You Need to Know About 1099-K Forms

Payment platforms are required to issue Form 1099-K if certain thresholds are met:

• $20,000+ in total payments

• More than 200 transactions in a year

Even if you’re below these limits, you might still receive a form depending on how payments are processed.

• Business owners accepting credit, debit, or gift card payments will always get a 1099-K from their processor

• Using multiple apps or marketplaces could mean multiple forms

Income Still Counts Without a Form

The IRS stresses: tax responsibility doesn’t depend on receiving a 1099-K.

You must report income from:

• Selling goods (including personal items sold at a gain)

• Providing services

• Online marketplaces, craft platforms, auctions, ticket resales, car sharing, crowdfunding, freelance work

Gains from these transactions must appear on your tax return, even if no form is issued.

What Isn’t Taxable

Certain personal transactions do not count as income:

• Gifts from friends or family

• Reimbursements (splitting meals, travel costs, rent, or utilities)

These should not be reported.

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