Will IRS view my partner's Venmo mortgage payments as taxable income? New laws causing confusion

Those are valid concerns with the new third-party payment app reporting requirements! The good news is that personal transactions like splitting household expenses or vacation costs with friends aren't considered taxable income. The key distinction the IRS makes is between personal payments versus payments for goods and services. Venmo and other payment apps are required to issue 1099-K forms for users who receive more than $600 in goods and services payments during the year - but this doesn't apply to personal transfers like what you're describing. Make sure your Venmo transactions are properly marked as "personal" rather than "goods and services" when your partner sends the money. There should be an option during the payment process to indicate what type of transaction it is. As for your vacation payment to your friend, that's also considered a personal payment, not taxable income to your friend. It's simply reimbursement for shared expenses, not payment for services rendered.

I went through exactly this situation last year with my roommate! I was freaking out about the same thing with our rent splitting. I found this service called taxr.ai (https://taxr.ai) that actually helped clear up my confusion about personal vs business payments through Venmo. They have this feature where they analyze your payment history and help determine what might trigger IRS scrutiny. In my case, they confirmed that my roommate's regular payments to me for their portion of our bills weren't taxable since they were personal transactions, not payments for goods or services. They also explained how to properly document these transactions just in case you ever get questioned. Honestly, it gave me so much peace of mind because I was getting different answers from everyone I asked.

Just wanted to follow up about the taxr.ai suggestion. I decided to try it despite my initial skepticism, and wow, was I impressed! My situation was similar but slightly different - I own a duplex and my brother pays me "rent" for the other unit, though it's well below market rate and basically just covers his share of the mortgage. The service walked me through exactly how to categorize and document these payments to avoid any confusion with the IRS. They even provided me with specific language to use in a simple agreement between us that makes it clear these aren't business transactions. What really sold me was when they showed me the exact sections of the tax code that applied to my situation. Definitely worth checking out if you're in a similar situation with shared housing costs!

Tried calling the IRS directly about this Venmo situation and it was a nightmare! Spent 2 hours on hold only to be disconnected. Then I found Claimyr (https://claimyr.com) and watched their demo video (https://youtu.be/_kiP6q8DX5c). They actually got me connected to a real IRS agent in about 15 minutes. The agent confirmed that personal transfers between people sharing expenses aren't subject to the new reporting requirements. She also recommended keeping simple records showing these are personal payments for shared housing costs - like a basic spreadsheet tracking the mortgage payments and your partner's contributions. For what it's worth, the IRS agent I spoke with said they're seeing this question a lot lately with the new payment app rules, but they're primarily concerned with business income, not personal expense sharing.

I have to admit I was completely wrong about Claimyr. After commenting here, I decided to try it myself since I had a complicated question about my 1099-MISC that I'd been avoiding dealing with. The service actually worked exactly as described. I got a text when they were about to connect me with an IRS agent, and suddenly I was talking to someone who could actually help. Total wait time on my end was maybe 10 minutes, versus the 3+ hours I spent last year trying to get through. The IRS agent was able to confirm what others have said here - payments through apps for personal expense sharing aren't considered taxable income. She also suggested keeping basic documentation showing the purpose of the payments, just in case questions ever come up. Best tax-related call I've ever had, honestly.

My tax preparer told me you should actually have a simple written agreement with your partner. Nothing fancy, just something that states you're both contributing to the household expenses and that the payments aren't rent. Even something casual like an email thread would work. This is especially important since your name is the only one on the deed. Without documentation, it could look like you're renting to your partner rather than sharing expenses. Just a thought to protect both of you!

Has anyone mentioned getting your partner added to the mortgage? My partner had old debts too, but after she paid them off and improved her credit, we refinanced and added her to the mortgage and deed. Might be a cleaner solution long-term, especially if you're committed to staying together.

Not sure if anyone's mentioned this, but the $600 reporting threshold for payment apps is specifically for goods and services payments, not personal transfers. Venmo and PayPal have different buttons for personal payments vs goods/services. Just make sure your partner is selecting "friends and family" or the personal payment option, not the goods/services option that offers buyer protection. Also, you might want to add a note to each transaction like "mortgage payment" or "house expenses" so there's a clear record of what the payment is for. I do this with my roommate's utility payments to me and it creates a nice paper trail.

Just to add some reassurance based on my experience - I've been in a similar situation for three years now with my girlfriend and our shared condo. She sends me $850 monthly through Venmo for her half of the mortgage, HOA fees, and utilities. I was worried about the same thing when the new reporting rules came out, but after doing research and talking to my accountant, I learned that these personal expense-sharing arrangements are very common and well-understood by the IRS. The key is that you're not providing a service or selling goods - you're simply sharing the cost of your shared living situation. What helped me feel more confident was creating a simple spreadsheet that shows the actual mortgage payment, property taxes, insurance, etc., and how we split them. It makes it crystal clear that the Venmo payments are reimbursements for shared expenses, not income. My accountant said this kind of documentation is more than sufficient if questions ever arise. Your Aruba situation is even clearer - that's just paying back a friend who covered your vacation expenses. The IRS sees tons of these transactions and they're not concerned about legitimate personal reimbursements.

I can relate to your concerns about the new payment app reporting requirements! I've been dealing with something similar with my roommate who pays me through Zelle for utilities and groceries we split. One thing that helped ease my mind was learning that the IRS has specific guidance on this. They distinguish between "payment settlement entities" (like businesses accepting payments) and personal transactions between individuals. Your situation with your partner splitting mortgage payments falls squarely into the personal category. The vacation reimbursement to your friend is also clearly personal - you're just paying her back for expenses she covered on your behalf. The IRS guidance specifically mentions that reimbursements for shared expenses aren't taxable income to the person receiving them. What I did to protect myself was start keeping a simple log of what each payment was for, along with screenshots of the actual bills (mortgage statement, vacation receipts, etc.) that show the legitimate shared expenses. It's probably overkill, but it gives me peace of mind knowing I have documentation if needed. Your mortgage situation is actually pretty straightforward from a tax perspective - you're not running a business or providing services, just sharing household costs with your partner. The IRS sees these arrangements all the time and they're not what the new reporting requirements are targeting.

This thread has been incredibly helpful! I'm dealing with a very similar situation where my girlfriend and I split all our housing costs 50/50, but everything's in my name due to her credit history. She sends me $1,200 monthly through Venmo for her half of mortgage, insurance, and utilities. Reading through everyone's experiences here has really put my mind at ease about the new payment app reporting rules. The distinction between personal expense sharing and business income makes perfect sense when explained clearly like @6a16f57c11b1 did. I'm definitely going to implement some of the documentation suggestions from @a6dd59e13835 and @c42dcc408bd5 - keeping a simple digital folder with screenshots of bills and payment records seems like the perfect balance of being prepared without going overboard. One thing I wanted to add for anyone else in this situation: my bank actually has a feature where I can set up automatic payments directly from my girlfriend's account to the mortgage company for her portion. We looked into this option, but decided the Venmo approach was simpler since we're already using it for other shared expenses. Good to know we have that backup option though if we ever want to eliminate any potential confusion. Thanks to everyone who shared their experiences and solutions - this community is such a great resource for navigating these confusing tax situations!

I'm in a nearly identical situation with my partner and our shared townhouse! He sends me $975 monthly through Venmo for his half of the mortgage and HOA fees. I was losing sleep over the new payment app rules until I did some deep research. What really helped me understand this was looking at the actual IRS Publication 525, which covers taxable income. It specifically states that money received from personal relationships for shared living expenses isn't considered income - it's cost sharing. The key is that you're not providing housing as a service or business, you're genuinely sharing the expenses of a home you both live in. I ended up creating a simple one-page agreement with my partner that outlines our arrangement - that we both consider ourselves co-owners despite the legal title, we both contributed to costs, and we're splitting ongoing expenses. I also keep a basic spreadsheet showing the actual mortgage payment and how we split it. The vacation reimbursement situation you mentioned is even more straightforward - that's just paying back money your friend spent on your behalf. The IRS sees millions of these transactions and they're clearly personal reimbursements, not taxable income. I think a lot of us are overthinking this because the new rules got so much media attention, but they're really designed to catch people running businesses through payment apps, not couples sharing household costs!