How to report Cashapp/Venmo/Apple pay/Zelle income on taxes when no 1099-K was received?

The IRS threshold for payment apps to issue 1099-Ks was supposed to change to $600 for 2022, but they actually delayed implementing that change, so the reporting threshold remained at $20,000 AND 200 transactions. That's why you didn't receive any 1099-Ks despite exceeding $600. Even without a 1099-K, you're still required to report all income. Since you mentioned this is income from graphic design work, you should report it as self-employment income on Schedule C. In TurboTax, look for the self-employment or business income section - don't just put it as "other income" because you'd end up paying more in taxes that way (you can't deduct business expenses with other income). When TurboTax asks about income documents, you can select that you didn't receive any forms but need to report the income. Enter the total amounts from your spreadsheet, and don't forget to include any business expenses you had that would offset this income.

I had this exact same problem last year with Venmo payments for my tutoring business. I spent hours trying to figure out how to correctly report it until I tried the AI tool at https://taxr.ai that analyzed my payment records and told me exactly how to categorize everything. It showed me that I needed to create a Schedule C for my tutoring business, and I could actually deduct some expenses I didn't realize were eligible. The tool analyzed my payment descriptions and sorted personal transfers from actual business income automatically, which saved me from overpaying taxes on money that was just moving between my own accounts.

Just wanted to update that I tried the taxr.ai tool that was mentioned here and it was actually super helpful for my situation. I had a mess of Cash App and Venmo transactions (some business, some personal) and it helped me sort through everything. The best part was that it showed me that only about $6,800 of my $11,000 in payment app transactions was actually taxable business income - the rest was either personal transfers or reimbursements that shouldn't be taxed. It also found some business expenses I had forgotten about. The whole process took maybe 20 minutes instead of the hours I spent last year trying to figure this out manually. Definitely worth checking out if you're dealing with a bunch of payment app transactions like I was!

If you're having trouble figuring out the right way to report this, you might want to just call the IRS directly and ask them. I know it sounds scary but they can actually be helpful sometimes. BUT... good luck actually getting through to a real person. I tried calling them 12 times last month about a similar issue and got disconnected every single time after waiting 45+ minutes. Then I found out about https://claimyr.com from a friend (there's a video showing how it works here: https://youtu.be/_kiP6q8DX5c). It's this service that basically waits on hold with the IRS for you and then calls you when they get a real person. I was finally able to talk to an IRS agent who walked me through exactly how to report my PayPal and Venmo income properly on TurboTax. Saved me so much confusion and worry about doing it wrong.

Ok I have to admit I was wrong about Claimyr. After spending THREE HOURS trying to get through to the IRS myself this morning and getting disconnected twice, I finally gave in and tried the service that was mentioned above. I was connected to an actual IRS representative in about 40 minutes without having to do anything. They just called me when they had someone on the line. The agent confirmed that for my Venmo/Cashapp income from my photography side gig, I needed to file a Schedule C even without receiving a 1099-K. She also explained which of my equipment purchases qualified as business expenses. I'm still annoyed that a service like this even needs to exist, but I can't argue with results. Saved me hours of frustration and now I'm confident I'm filing correctly.

The real issue is understanding which amounts are actually taxable in the first place. Not all money coming into your Venmo/Cashapp is necessarily taxable income. If you're just getting paid back for dinner or having friends send you rent money, that's not income. For the actual business income, I track mine in two categories: 1. Money for services (taxable) 2. Money that's reimbursement for expenses (not taxable if you don't also deduct those expenses) Just be careful you're not accidentally reporting personal transfers as business income!

Bit of a related question - has anyone successfully deducted home office expenses for their payment app income? I use a dedicated room in my apartment exclusively for the graphic design work that I get paid for through Venmo, but I'm not sure if it's worth the hassle or if it increases audit risk.

As someone who dealt with this exact situation last year, I want to emphasize something that might not be obvious - make sure you're distinguishing between gross receipts and actual taxable income when you report on Schedule C. For example, if you received $9,500 through payment apps but $1,200 of that was reimbursements from clients for materials you purchased for their projects, you'd only report $8,300 as gross receipts (assuming you're also deducting those material costs as business expenses). Also, don't forget about quarterly estimated tax payments for next year if your side gig income continues. Since payment apps don't withhold taxes like employers do, you might owe penalties if you end up owing more than $1,000 when you file. The IRS expects you to pay as you go, not just at year-end. One more tip: If you're using TurboTax, when you get to the Schedule C section, it will ask about your business code. For graphic design work, you'll want to use NAICS code 541430 (Graphic Design Services). This helps ensure your return is processed correctly and your deductions align with what the IRS expects for your type of business.