As a rule of thumb the IRS won’t audit anybody they can’t recoup more from than the cost of the audit. Maybe $20,000 maybe $40,000.
Obviously, the number should be on the higher end because now the IRS is short staffed.
But venmo will supply a copy of 1099k to the irs and the girlfriend.
Plus the $600 threshold applies in 2026.
2025 is $2,500.
I’m not american but we also have yearly tax here and if I’m ever audited I’m FUCKED. I don’t have a singe document saved. But also I’m super poor so id think they want me
This whole yearly tax thing seems like so much unnecessary work to me. Here in the UK we have a “pay as you earn” system. Taxes get deducted from your wage automatically every time you get paid and it’s all recorded. No extra steps needed. You only need to do extra reporting if you have significant income from other sources e.g. owning a business and getting dividends.
That’s how I suppose it works in every country.
The thing is that many people have other sources of income that are not paychecks. Thus why most people need to do this yearly declarations. But it is true that in any modern country this declarations are pre-made by tax agencies and it’s easier to fill.
And there’s also deductions. In many countries people can get tax deductions by many reasons and in most places you need to manually ask for them and fill the requirements.
Here for instance we can deduct money paid to Unions from our taxes. As political and syndicate afiliation is protected by law those payments are not automatically reported to the tax agency so if you paid them you have to manually fill the tax return.
I doubt there’s a country that doesn’t take deductions for tax on every paycheque. And it’s usually slightly more than you end up owing at the end of the year so they get to use it for half a year.
Doing taxes is basically to get that back, especially if you take advantage of things like retirement savings plans outside of work, or charitable donations that get written off.
I don’t think it works that way for personal payments. My gf venmos me that or more all the time for her share of the bills. It’s not income.
That’s because it’s repayment for a brief loan. Without it being her share of bills, it would be a gift, which would be taxed after $10k iirc.
Venmo, or any service, would be responsible for producing said tax form if they are also reporting the funds to the IRS. So she would be made aware of the tax form.
If anyone wants to test this though you’re welcome to venmo me $601. I’ll take a few volunteers just to make sure there are no flukes
Shoot me your Venmo login and I can just upload the funds directly. You shouldn’t be the only one having to do all the work of testing this, let me at least take that much off your plate.
I feel like most people ignore these kinds of forms and alerts. Like, you have to be paying attention to emails from venmo, and on top of that know what a 1099K even is, then you have to remember you have one while filing your taxes.
I figure most people never submit them and it’s all to small for the IRS to go after.
Gotta pick a service where they have an account but deleted the app and don’t use it.
