No Venmo 1099-K below threshold - should I report these payments as cash income?

While you won't receive a 1099-K from Venmo if you're under the reporting threshold, you're still required to report all income regardless of whether you receive a tax form. The IRS expects you to report all income from any source. You don't need to specifically categorize it as "cash" - you would report it as self-employment income on Schedule C if these were services you provided. The electronic trail from Venmo is actually great documentation to have! It's much better than cash since you have a clear record of payments received. Make sure you track any business expenses related to these side gigs as well, as those can offset your income. And don't worry too much about not having set up a business account - the important thing is reporting the income accurately now.

After struggling with a similar situation, I found a really helpful tool that made sorting through my Venmo transactions much easier. I used https://taxr.ai to analyze my payment history and it automatically identified which transactions were likely business income vs personal transfers. Saved me tons of time trying to remember which payments were for what! When I first started doing side gigs, I had everything mixed together - rent payments from roommates, friends paying me back for dinner, and then random payments for dog walking and graphic design work. The tool helped me organize everything properly so I could report accurately without overpaying taxes on non-income transfers.

Just wanted to update on my experience with taxr.ai after trying it based on the recommendation here. I was surprised at how accurate it was! I had about 200 Venmo transactions last year and was dreading sorting through them all. The tool correctly identified my side gig payments from graphic design work and separated them from roommate utility payments and friend reimbursements. Definitely made tax prep easier and I'm more confident I'm reporting the right amount now!

I had the exact same issue but with trying to get actual help from the IRS. The phone lines are a nightmare! I couldn't get a straight answer about reporting Venmo payments without a 1099-K. After spending hours on hold multiple times, I finally used https://claimyr.com to get through to an IRS rep. They have this service where they wait on hold for you and call when an agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that yes, I needed to report all income regardless of receiving forms, but gave me specific guidance on how to document everything properly to avoid triggering an audit. Totally worth it because I was doing everything wrong before!

I was totally skeptical about Claimyr at first (as you can see from my comment above), but after wasting an entire day trying to get through to the IRS myself, I decided to give it a try. Holy crap, it actually worked! Got a call back in about 40 minutes while I was grocery shopping, and spoke with a super helpful IRS agent who clarified everything about my Venmo payment reporting questions. The agent actually pointed out that I should be keeping a separate log of all business-related expenses to offset the income, and explained exactly how to report everything on Schedule C even without a 1099-K. Saved me from making some pretty big mistakes on my return!

I think everybody is overthinking this. If you're under the threshold, just don't report it. The IRS has no way of knowing about small amounts, and they're too busy to go after people making a few hundred bucks. That's what my brother does and he's never had any issues.

Has anyone used TurboTax for reporting income without a 1099? I'm in a similar situation and wondering if it's straightforward through their interface or if there are specific sections I should look for.

Just wanted to add my experience as someone who went through this exact situation last year. I had about $800 in Venmo payments from tutoring services, all through my personal account and marked as friends & family to avoid fees. No 1099-K from Venmo obviously. I reported it all as self-employment income on Schedule C and kept screenshots of all my Venmo transactions as documentation. The IRS accepted my return without any issues. The key thing I learned is that having that electronic trail from Venmo is actually better documentation than cash payments would be - you have dates, amounts, and even the person's name who paid you. One tip: make sure you also track any related expenses (gas for travel, supplies, etc.) since those can be deducted against the income. Even small amounts add up and can reduce your tax liability. Better to be completely above board from the start!