Venmo, PayPal and Zelle®: New Tax Reporting Rules

Transactions made with popular online payment apps may be subject to taxation. Tada Images/Shutterstock

Venmo, Zelle®, and PayPal are familiar online payment platforms. They are peer-to-peer payment apps that allow you to transfer money. Some people use them to pay family and friends. Others use them to make business transactions.

What are these payment apps, and when you use them, can your transactions be taxed?

Increased Tax Reporting on Payment App Transactions

Taxation on business transacted through payment apps is nothing new. When you send money through certain peer-to-peer apps, specified amounts of business transactions are subject to taxation on the part of the recipient.