Do I need to worry about Apple Pay taxes if I only received $2,400 this year?
So I've been using Apple Pay to get paid for some side gigs and random stuff I've sold online. I'm a bit confused about the tax reporting situation. I heard somewhere that the threshold to receiving a 1099-K is $20,000 - is this actually true? I've been frantically checking all my emails over the past few days and I can't find a tax form anywhere. I've only received about $2,400 total through Apple Pay this year, and honestly these weren't even income - just friends paying me back for trips, selling some old electronics, and stuff like that. Do I need to be concerned about this for filing my taxes? I don't want to get in trouble with the IRS, but I also don't think I should have to report money that isn't actually income. Any help would be appreciated!
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Alicia Stern
The $20,000 threshold for 1099-K forms is actually outdated information. The IRS had planned to lower the reporting threshold to $600 for tax year 2022, but they've delayed implementation several times. For 2024 taxes (filed in 2025), the threshold is still $20,000 AND 200 transactions through payment apps like Apple Pay. Since you received only $2,400 and it wasn't actually income (just reimbursements and personal item sales), you likely won't receive a 1099-K form. However, it's important to understand that the absence of a tax form doesn't automatically mean you don't have to report income. The IRS requires you to report all income regardless of whether you receive a tax form. Money that friends paid you back for trips or selling used personal items at a loss generally isn't considered taxable income. But if you were selling items for profit or providing services, that would be taxable even without a 1099-K.
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Gabriel Graham
•Wait, so if I sold some clothes on Poshmark and made like $800 total last year but didn't get any form, do I still need to report that? What if most of the stuff I sold was actually at a loss compared to what I originally paid?
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Alicia Stern
•If you sold personal items on Poshmark for less than you originally paid (at a loss), that's generally not considered taxable income. The IRS views this as selling used personal items, not as running a business. If some items did sell for more than you paid, technically that portion would be taxable as a capital gain, even without receiving a tax form. However, for casual sellers with small amounts, it can be difficult to track the original purchase price of each item. If you're not regularly selling items for profit and this isn't a side business, the tax implications are usually minimal.
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Drake
I was in the exact same boat last year - freaking out about Apple Pay and Venmo payments! I ended up using a service called taxr.ai (https://taxr.ai) that analyzed all my payment history and sorted everything into taxable vs non-taxable categories. It was a massive relief because it turns out most of my transactions were just friends paying me back for dinners and concert tickets, which aren't taxable. The nice thing was it automatically identified which transactions were actual income vs. just money movement. It also gave me documentation to keep in case of an audit. Definitely helped me sleep better knowing I wasn't accidentally committing tax fraud lol.
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Sarah Jones
•How does it access your Apple Pay history though? I didn't think there was a way to export that data easily. Does it work with other payment apps too?
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Sebastian Scott
•Sounds interesting but I'm skeptical. Couldn't you just go through your own transactions and figure this out manually? Was it expensive?
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Drake
•It can connect to your Apple Pay account through their secure API integration, but I actually just uploaded my transaction history that I downloaded from my Apple account. Super easy process. Yes, it works with basically all the major payment platforms - Venmo, PayPal, Cash App, Zelle, etc. It can handle them all simultaneously which was great for me since I use multiple apps.
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Sebastian Scott
Just wanted to follow up - I actually tried taxr.ai after posting my skeptical comment! It was surprisingly helpful for someone disorganized like me. I had transactions spread across Apple Pay, Venmo and PayPal, and it consolidated everything, identified which ones were actually business income vs personal transfers, and even flagged some business expenses I could deduct that I had completely forgotten about. Saved me a bunch of time I would've spent manually sorting through hundreds of transactions and probably made more accurate categorizations than I would have on my own.
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Emily Sanjay
If you're really worried about any tax issues with those Apple Pay transactions, you might want to talk directly to the IRS. I know that sounds terrible (trust me, I've been there), but I found this service called Claimyr (https://claimyr.com) that actually gets you through to an IRS agent usually within 15 minutes instead of waiting on hold for hours. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c I used it last year when I had a similar question about PayPal payments for my side gig. The agent I spoke with clarified exactly what I needed to report and what was exempt. Gave me peace of mind knowing I heard it directly from the IRS rather than just reading conflicting info online.
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Jordan Walker
•Wait, how does that even work? The IRS hold times are insane... I tried calling last month and gave up after an hour. Are you saying this somehow puts you at the front of the queue?
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Natalie Adams
•Yeah right. Nothing can get you through to the IRS faster. They're literally designed to be unreachable. This sounds like a scam to take advantage of desperate taxpayers.
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Emily Sanjay
•It uses an automated system that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, it calls your phone and connects you directly to them. It's not jumping the queue - it's just doing the waiting for you so you don't have to sit there with a phone to your ear for hours. They use the same public phone numbers anyone else would call, but their system is persistent and can redial if disconnected. It's basically like having someone else wait on hold while you go about your day.
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Natalie Adams
I have to eat my words here. After being super skeptical about Claimyr, I decided to try it because I was desperate to resolve a question about some Apple Pay transactions before filing my taxes. The service actually worked - I got a call back in about 25 minutes and was connected directly to an IRS representative. The agent confirmed that personal transactions and selling used items at a loss don't create taxable income, even with Apple Pay. The peace of mind was totally worth it, and I definitely wouldn't have gotten through if I had tried calling myself.
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Elijah O'Reilly
Just to add a data point here - I received around $5,000 through Apple Pay last year for graphic design work (actual income, not reimbursements) and didn't get a 1099-K. But I still reported it on my Schedule C because it's definitely taxable income. Better safe than sorry with the IRS!
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Amara Torres
•When you reported it on Schedule C, did you have to pay the self-employment tax too? That's the part that kills me - not just income tax but that extra 15% for self-employment. Also did you claim any business deductions to offset it?
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Elijah O'Reilly
•Yes, I did have to pay self-employment tax on it, which is roughly 15.3% on top of regular income tax. It definitely takes a chunk out of your earnings, but that's the cost of being your own boss. I absolutely claimed business deductions! Software subscriptions, portion of my internet bill, new laptop (depreciated), office supplies, and even some client meals. These deductions significantly reduced my taxable income. If you're doing any kind of side work, track EVERYTHING you spend related to that work - it makes a huge difference when tax time comes around.
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Olivia Van-Cleve
omg thank you for asking this! i was literally about to post the exact same question. ive been getting paid thru apple pay for dog walking (like $3100 last year) and panicking about taxes. reading these responses is super helpful!!
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Alicia Stern
•Since you're earning money from dog walking services, that is considered taxable income even without a 1099-K. You should report this on Schedule C as self-employment income. The good news is you can deduct business expenses like dog walking supplies, mileage driving to clients, a portion of your phone bill if you use it for scheduling, etc.
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Mason Kaczka
Just a friendly reminder to everyone: The IRS knows way more about your financial situation than you think. Payment apps like Apple Pay, Venmo, etc. might have to send data to the IRS even if they don't send you a 1099-K form. Don't risk an audit by trying to hide income - it's not worth the potential penalties and interest!
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Ali Anderson
This is really helpful information! I'm in a similar situation - got about $1,800 through Apple Pay last year from a mix of things like selling some furniture when I moved, friends paying me back for group dinners, and a couple small freelance writing jobs. Reading through all these responses, it sounds like the key is distinguishing between actual income (like the freelance work) versus just personal transactions (friends paying me back). I should probably report the freelance earnings even though it was small amounts, but the furniture sales and friend reimbursements don't sound like they'd be taxable. Does anyone know if there's a minimum threshold for reporting freelance income? Like if I only made $200 from writing, do I still need to put that on Schedule C?
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