ItвЂ™s important to keep detailed records of the costs related to your income, regardless of its source. Tracking it outside the P2P platform will ensure that you have the information necessary to report all of your income on the appropriate forms. If you do receive a 1099-K, you can use your accounting records to ensure the income reported to the IRS on your behalf is correct. Be sure to keep detailed records of your total income earned from all sources during the year for accurate tax reporting. Otherwise, your business and personal transactions will be intermingled, making it difficult to separate business and personal payments. If you receive some or even all of your business income through a P2P payment platform, you should set up a business account. But even if you don't receive a 1099-K, you're still required to report any taxable income you receive through these platforms on your income tax return. If you cross this threshold, the platform will send you and the IRS a Form 1099-K at tax time. According to, P2P platforms are required to report gross payments received for sellers who receive over $20,000 in gross payment volume and more than 200 separate payments in a calendar year. That being said, the threshold for reporting those payments is on the high side. And since P2P payment platforms are required to provide information to the IRS about customers who receive payments for the sale of goods and services, youвЂ™ll have no choice but to report them. However, the moment you begin accepting business payments on a P2P platform, you're responsible for reporting those earnings. If youвЂ™re just sending money back and forth for your share of dinner with friends, those payments donвЂ™t need to be reported on your tax return. Keep in mind that when you use these apps, youвЂ™re obligated to treat them just as you would any other form of payment you accept. However, Venmo, which is owned by PayPal, is geared toward individuals-although it does allow some businesses to use the platform. PayPal and Stripe were designed as online payment solutions for businesses. Here's a short primer on the new world of P2P platforms. The increased use of mobile payment apps such as Venmo, PayPal and Facebook (also known as P2P or peer-to-peer platforms), may have you wondering how these apps affect your taxes.

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