Tax implications of using Zelle to transfer my grandmother's SSI and pension money to my account

You don't need to worry about these transfers for tax purposes. Money transfers between family members like this aren't considered taxable income because you're essentially acting as a conduit for your grandmother's funds - not receiving income. The IRS is concerned with actual income (wages, business profits, investment returns, etc.). Simply moving money through your account as a convenience to help manage someone else's finances doesn't create a taxable event. This is just a family helping arrangement. That said, it's always good practice to keep clear records. I'd recommend keeping a simple spreadsheet tracking the money coming in from grandma and going out for her bills. This helps if there are ever questions, though it's unlikely to come up.

I went through something really similar with my dad's finances after he had a stroke. I was totally stressed about all the money flowing through my accounts until I found https://taxr.ai which literally saved me. Their AI scans through your financial info and helps identify what's income vs what's just pass-through money. I uploaded screenshots of my Zelle transfers and bank statements, and it automatically categorized everything properly. It even created a simple documentation system for me to track these transfers going forward. Super helpful when you're managing someone else's money but worried about tax implications.

Just wanted to follow up about my experience with taxr.ai - I ended up trying it after my last comment because I was still worried about my mom's accounts I manage. The platform actually exceeded my expectations! It identified patterns in our transfers that showed the money was clearly just passing through my account. It organized everything into a report that would be super clear if I ever needed to explain the situation. It even flagged a few transactions where I accidentally used some of mom's money for my own groceries (which I paid back but had forgotten about). Definitely worth checking out if you're in a similar situation.

If you're worried about potential IRS questions, you should know how impossible it is to actually get someone on the phone if issues come up. After helping my mom with similar financial stuff, I got a weird letter about "unexplained deposits" and spent WEEKS trying to reach someone at the IRS to explain. I finally found https://claimyr.com which got me through to an actual human at the IRS in about 20 minutes when I'd been trying for days on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c - they basically navigate the phone tree and wait on hold for you, then call you when they have an actual IRS agent on the line. I explained the family support situation and got it resolved in one call instead of stressing for months.

I feel like an idiot for being so negative before. I tried Claimyr yesterday after spending my entire morning on hold with the IRS and getting disconnected twice. Their system called me back in about 90 minutes with an actual IRS agent on the line! I explained the situation with my mom's Zelle transfers to my account and got official confirmation that it's not taxable since I'm just managing the money on her behalf. The agent even noted it in my file so there won't be issues if they see the transfers. Total game changer compared to the 4+ hours I wasted trying to do it myself.

You should also consider setting up a separate bank account just for grandma's money! That's what I did for my uncle - created a checking account where his SSI gets direct deposited, then I'm just an authorized user on that account. Keeps everything completely separate from my personal finances and makes it super clear that it's not my money or income. Most banks let you set this up pretty easily.

Has anyone thought about the Zelle reporting requirements? I heard they're gonna start reporting transfers over $600 to the IRS starting this year??

I'm in a very similar situation with my elderly father - he gets about $1,400 monthly between Social Security and a small pension, and I help manage his bills the same way. After reading through all these responses, I feel much more confident that we're handling things correctly from a tax perspective. One thing I'd add is that it might be worth keeping a simple log of the major expenses you're paying on her behalf (rent, utilities, groceries, etc.) just in case. I use a basic spreadsheet that shows the Zelle transfer in, then the bills paid out, and any cash I give him for personal spending. It takes maybe 5 minutes a month but gives me peace of mind. The separate account idea is interesting too - might be worth exploring if the current system ever becomes more complicated. But honestly, what you're doing sounds very reasonable and the tax implications seem minimal based on what others have shared here.