Apr 15, 2025 - Business

What to know about Venmo, PayPal and crypto payments on Tax Day

The deadline to file federal income tax returns and extensions to the Internal Revenue Service is Tuesday for most of the United States.

Why it matters: Payments on platforms like Venmo and Paypal, as well as crypto assets, have specific reporting rules.

Do I need to report crypto transactions on my taxes?

The big picture: Yes, taxpayers need to report crypto and other digital asset transactions on their tax returns.

"Anyone who sold crypto, received it as payment or had other digital asset transactions needs to accurately report it on their tax return," the IRS says on its website.
Digital assets include convertible virtual currency and cryptocurrency, stablecoins and non-fungible tokens (NFTs).
Even though "currency" is in the name, crypto and other digital assets are property in the eyes of the IRS, and general property tax rules apply to their transactions.
More detailed information about digital asset transaction reporting can be found on the IRS website.

State of play: Yes, those earning at least $5,000 through platforms such as Venmo and Paypal will need to report their payments to the IRS.

Previously, self-employed workers making at least $20,000 through Venmo, Paypal, CashApp, Stripe and other payment apps received a 1099-K to report income.

The IRS is starting to transition to lowering that threshold to $600, which will begin in tax year 2026.
For 2024, the minimum is $5,000. People earning that much through app payments should receive and fill out a Form 1099-K.
More detailed 1099-K rules can be found here.

The new 1099-K rules apply to those earning money through rideshare apps such as Uber and Lyft, online marketplaces like Etsy, eBay and Shopify, ticket resale sites such as Ticketmaster and StubHub, and crowdfunding platforms like Kickstarter and GoFundMe.