Platforms like Venmo have become increasingly popular for freelancers, gig workers and people with side businesses. The convenience of transferring payments to your bank account with a few taps on your smartphone is undeniable. However, Venmo and other apps bring tax obligations you might be unaware of, and understanding these is crucial for staying compliant with IRS regulations.
The question on many self-employed people’s minds is: Does Venmo report my earnings to the IRS? The short answer is yes, but there are specific thresholds. If you receive more than $20,000 through Venmo and have over 200 separate payments in a calendar year, Venmo will send you and the IRS a Form 1099-K in the following year, detailing the transactions processed through the platform.
However, even if you do not reach this threshold or receive a 1099-K, you must still report all business income you receive on your income tax return. Failure to do so could trigger a tax audit.
Self-employed people must pay quarterly estimated taxes. These payments cover your income tax and self-employment tax and are due on the following dates:
Paying your quarterly taxes on time helps you avoid a costly end-of-year tax bill and potential penalties for underpayment.
Tax season can be daunting, but here are some tips to help you manage.
While Venmo is a convenient way to get paid for your work, you must be aware of your tax obligations. Accurately reporting your income and staying on top of your quarterly tax payments can help you avoid penalties and ensure you remain compliant with IRS regulations. Clear View Business Solutions is here to assist with all your tax planning and bookkeeping needs, so you can focus on growing your business while staying financially healthy and compliant. Our talented team is compassionate, empathetic and knowledgeable about all the ins and outs of the tax code. Request your consultation today.
At Clear View Business Solutions, we know you want your business to prosper without having to worry about whether you are paying more in taxes than you should or whether your business is set up correctly. The problem is it's hard to find a trusted advisor who can translate financial jargon to layman's terms and who can actually help you plan for better results.
We believe it doesn't have to be this way! No business owner should settle for working with a CPA firm that falls short of understanding what you want to achieve and how to help you get there.
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At Clear View Business Solutions, we know you want your business to prosper without having to worry about whether you are paying more in taxes than you should or whether your business is set up correctly. The problem is it's hard to find a trusted advisor who can translate financial jargon to layman's terms and who can actually help you plan for better results.
We believe it doesn't have to be this way! No business owner should settle for working with a CPA firm that falls short of understanding what you want to achieve and how to help you get there. With over 20 years of experience serving hundreds of business owners like you, our team of experts combines financial expertise and proactive communication with our drive to help each client achieve results and have fun along the way.
Here's how we do it:
Discover: We start with a consultation to understand your specific goals, what's holding you back, and what success looks like for you.
Strategize & Optimize: Together, we design a customized strategy that empowers you to progress toward your goals, and we optimize our communication as partners.
Thrive: You enjoy a clear view of your business and your financial prosperity.
Schedule a consultation today, and take the first step toward being able to focus on your core business again without wondering if your numbers are right- or what they mean to your business.
In the meantime, download, "The Business Owner's Essential Guide to Tax Deductions" and make sure you aren't leaving money on the table.
