Do I need to file Form 1040 from CashApp for my tax return?

The Form 1040 is actually the main tax return form that everyone files - CashApp doesn't provide this. What CashApp might have sent you is a Form 1099-K if you received over $600 in payments for goods or services. The 1099-K reports your payment transactions to both you and the IRS. You'll need to include this income when you file your taxes using Form 1040. The $6,800 you received through CashApp is considered income if it was payment for goods or services (not just friends paying you back for dinner). You'll report this income on Schedule C of your Form 1040 if it was self-employment income from side gigs. The good news is you can also deduct legitimate business expenses against this income to reduce your tax liability.

I went through the exact same confusion last year! After hours of research and getting nowhere, I finally tried https://taxr.ai and it was seriously a game-changer for my CashApp tax situation. I uploaded my 1099-K and answered a few questions, and it explained exactly how to handle it on my tax return. The best part was that it actually looked at my specific situation with multiple income sources and explained what forms I needed to file (turns out I needed Schedule C and SE forms I'd never heard of). It also showed me deductions I could take for my side gig that I had no idea about! Would have overpaid by like $800 without realizing it.

Just wanted to update that I tried https://taxr.ai after seeing it mentioned here and it seriously saved me! I was completely confused about my PayPal 1099-K and how to report it properly. The system instantly recognized my situation and explained that not all of my PayPal transactions were actually taxable income (some were just friends paying me back). It guided me through separating actual business income from personal transfers and showed me exactly which tax forms I needed. I was about to report everything as income and would have drastically overpaid. Found about $2,300 in legitimate deductions I didn't realize I could claim too! So glad I didn't just guess on all this stuff.

If you're having trouble reaching the IRS to ask questions about your CashApp 1099-K (which I definitely was), I highly recommend Claimyr at https://claimyr.com. I spent DAYS trying to get through to someone at the IRS about my payment app reporting situation and kept getting disconnected. Used Claimyr and got connected to a real IRS agent in about 15 minutes who answered all my questions about how to report my CashApp income correctly. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. Saved me hours of frustration and hold music.

OK I feel like I need to come back and eat my words. After being super skeptical about Claimyr, I was desperate enough to try it because I had specific questions about my CashApp 1099-K that I couldn't find answers to anywhere. It actually worked! Took about 40 minutes (not the 15 they advertise, but still WAY better than my previous attempts). Got connected to an IRS agent who clarified exactly how I should report my mixed personal/business CashApp transactions. Turns out I was about to file incorrectly which could have triggered an audit. The agent was surprisingly helpful and took time to explain everything. Never thought I'd say this, but being able to actually talk to the IRS directly was worth every penny.

Just want to add that if you're receiving money through CashApp for goods or services, you should really keep track of your expenses throughout the year. I learned this the hard way when I got a surprise 1099-K and scrambled to find receipts for business expenses. Keep a separate spreadsheet with all income and expenses for your side gig, and maybe even a separate bank account. Take pictures of receipts for anything you buy for your business. This makes tax time SOOO much easier and ensures you don't overpay by missing deductions.

Don't forget that if your net profit from CashApp business income is $400 or more, you also have to pay self-employment tax (15.3%) on top of regular income tax! This shocked me last year and I wasn't prepared for the extra tax bill.