Will Cash App deposits from my pocket money be taxable for my family?

Thanks for that explanation. What if I'm depositing more than $600 into my Cash App during the year? I heard Cash App now reports to the IRS if you get over $600. Will they think I'm making business income even though it's just me putting my own money in there?

The $600 reporting threshold you're referring to applies to business transactions processed through third-party payment networks like Cash App, not to you depositing your own money. Cash App is required to provide a 1099-K form when a user receives more than $600 in business transactions (payments for goods or services). Simply depositing your own cash into your Cash App account or sending personal transfers to family members doesn't trigger this reporting requirement. These are considered personal transfers, not business income. Just make sure you don't mark these transfers as payments for goods or services in the app - that's typically where the distinction is made.

Does it actually work with Cash App specifically? I've tried other tax helpers before and they usually just get confused when I upload my Cash App statements. Does this one know the difference between me adding my own money versus receiving payments?

I'm a little skeptical about giving a third-party service access to all my financial data. Do they store your bank info or transaction history? Just seems like a lot of sensitive info to hand over.

Yes, it does work with Cash App specifically! One of the best features is that it recognizes the difference between adding your own money (not taxable) versus receiving actual payments for goods/services (potentially taxable). It categorizes everything correctly which was a huge relief. Regarding privacy concerns, I was worried about that too. They use bank-level encryption and don't store your actual login credentials. They just analyze the transaction data to help categorize everything for tax purposes, then provide you with a report. You can delete your data after getting your report if you're concerned. I found their privacy policy pretty straightforward compared to most financial services.

It's not a premium line - they use an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly. You still talk to the same regular IRS agents, but without doing the waiting yourself. As for whether it's legitimate - I was skeptical too, that's why I mentioned the demo video. It's basically like having someone else wait on hold for you. The IRS phone system is definitely designed to be frustrating, but it's not impossible to get through - it just takes hours that most people don't have. This service does the waiting part for you. I was connected to an agent in about 1.5 hours while I just went about my day.

Wait, how does this actually work? I thought it was literally impossible to get through to the IRS phone lines. Is this some kind of premium line or something?

Yeah right, sounds like a scam. You expect me to believe some random service can magically get through when millions of people can't? The IRS phone system is basically designed to be impossible. If this worked, everyone would be using it.

It's not a premium line - they use an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly. You still talk to the same regular IRS agents,

Does anyone know if those Cash App fees are tax deductible? I've paid like $30 in fees this year already just helping my mom with her money.

Unfortunately, Cash App fees for personal transfers aren't tax deductible. They're considered personal expenses, similar to ATM fees or bank charges. If you were using Cash App for a legitimate business purpose, then those fees could potentially be deductible as a business expense. But for just helping family with personal money transfers, the IRS doesn't allow deductions for those fees. It's definitely worth using the standard transfers when you can to avoid those charges!

Is that $10,000 in a single transaction or cumulative over time? I help my parents with cash deposits pretty regularly and now I'm worried.

The $10,000 threshold is for individual transactions, not cumulative. Banks are required to file Currency Transaction Reports (CTRs) for any single cash deposit over $10,000. However, they also watch for patterns of deposits just under $10,000 (called "structuring") which can also trigger reports. For most people helping family with smaller regular deposits, this isn't something to worry about. The CTR is just a regulatory filing - it doesn't automatically mean you're under investigation or doing anything wrong. It's just part of the banking system's anti-money laundering requirements.