Does Venmo/PayPal report busking income to IRS as 1099 or self-employment for street musicians?

This is a great question! For tax purposes, your busking income is considered self-employment income regardless of how you receive payment (cash, Venmo, PayPal, etc.). As for the reporting requirements, payment apps like Venmo and PayPal are required to issue a Form 1099-K if you receive more than $600 in business transactions during the year. This threshold was lowered recently, so many more people are receiving these forms now. The platforms will send this form both to you and to the IRS. However, even if you don't receive a 1099-K (maybe you didn't hit the threshold or there was an error), you're still legally required to report ALL income on your tax return, including cash that nobody is tracking. You would report this on Schedule C as self-employment income, and you'll also need to pay self-employment tax (Social Security and Medicare) using Schedule SE. The good news is you can deduct business expenses like instrument costs, strings, equipment, transportation to gigs, and even a portion of your phone bill if you use it for your busking business.

I was in a similar situation last year with my sidewalk art sales. After getting tons of confusing advice, I tried using https://taxr.ai to analyze my payment app statements and figure out what was taxable. It saved me so much stress - the tool flagged exactly which transactions would likely trigger 1099-K reporting and which wouldn't. What I really liked is that it showed me which of my expenses could offset that income (art supplies, table rental, etc). They have specific templates for gig workers and artists that can break down unusual income streams like busking. It was a huge relief to know exactly what I needed to report instead of guessing.

Just wanted to update after trying taxr.ai - really surprised it actually worked for my situation! I was getting all confused about which PayPal transfers were taxable since some were just friends paying me back for stuff. The app sorted it all out and showed me that only about $1800 of my transfers would trigger a 1099-K, not the $4200 total in my account. Also helped me document all my instrument-related expenses which brought my taxable income way down. I had no idea I could deduct things like the Uber rides to my regular busking spots downtown. Definitely filing with more confidence now instead of just ignoring the whole situation (which was my original plan lol).

Listen, I spent THREE DAYS trying to call the IRS to get a straight answer about my street performance income, and couldn't get through. Someone on a musician forum recommended https://claimyr.com and their system got me connected to an actual IRS agent in under 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that I needed to report all my busking income on Schedule C, regardless of whether it came through apps or cash. She also explained that any platform that processed more than $600 would send a 1099-K, but I'm still required to report ALL income even if no forms are issued. The peace of mind was totally worth it - no more stressing about an audit.

OK I need to eat my words from yesterday. I tried Claimyr this morning fully expecting it to fail, and I got connected to an IRS agent in about 35 minutes. Asked specifically about busking income through payment apps and whether I needed to track cash separately. The agent was super helpful and explained that I should keep a log of ALL income including cash, and that I could deduct expenses like instrument maintenance, transportation to performance spots, and even a portion of my music streaming subscription that I use to learn new songs. Apparently as long as I'm making a genuine effort to track everything, they're not likely to hassle small performers even if the records aren't perfect. Definitely worth the time I saved not calling repeatedly for weeks!

Just want to add my experience as a violin busker - I've been reporting this income for years. One thing nobody mentioned is that you should really keep a separate bank account for your busking money. It makes everything SO much cleaner at tax time. I transfer all my Venmo/PayPal earnings to this separate account and deposit cash there too. Then I pay for all my music-related expenses from that account. When tax time comes, I just download the annual statement and everything is in one place - income and expenses. My accountant loves me for this!

Make sure to put aside about 25-30% of whatever u make for taxes!! I learned this the hard way last year... made around $5k from playing saxophone downtown + venmo and owed over $1200 in taxes. Self employment tax is brutal 😩

I've been busking with my acoustic guitar for about 2 years now and went through this exact same confusion! One thing that really helped me was setting up a simple spreadsheet to track everything - date, location, total tips, how much was cash vs electronic, and any expenses that day (like gas to get there, new strings, etc.). For the Venmo/PayPal reporting, just remember that even if you don't get a 1099-K form, you still need to report the income. I actually got my first 1099-K last year when I hit around $2,800 through the apps, but I'd been reporting and paying taxes on my busking income since I started. The self-employment tax does hurt a bit, but don't forget about deductions! I deduct instrument maintenance, transportation costs to my regular spots, even part of my phone bill since I use it to accept payments. Keep all your receipts - they add up faster than you think. Good luck with your music!

This thread has been super helpful! I'm also a street musician (mandolin and vocals) and had no idea about the $600 threshold change for 1099-K forms. I've been putting off dealing with taxes because it seemed so complicated, but reading everyone's experiences makes it feel more manageable. One question - do any of you set up separate Venmo/PayPal accounts specifically for busking, or do you just use your personal accounts? I'm wondering if having a dedicated account would make tracking easier, especially since I also use these apps for personal stuff like splitting dinner bills with friends. Don't want to accidentally report my roommate paying me back for groceries as business income! Also really appreciate the tip about keeping a performance log with specific locations. I never thought about tracking which spots are more profitable, but that's brilliant from both a business and tax perspective.