I'm an online model (you know what) a long time sub from my OF gives me money on venmo for food, dinner, gas, groceries, etc. Is this considered just a friend giving me money? There is no exchange of goods/services, he just gives me it for every day expenses. Please no judgmental comments, I'm just genuinely curious.
Do I report my venmo money on taxes?
byu/loset_ocelot_0101 intax
Posted by loset_ocelot_0101
16 Comments
Is it marked as a gift when he sends it? Fees get attached to good and service payments where a 1099 gets issued when the yearly sum surpasses a certain monetary threshold
Venmo has a tax documents section.
Monetary gifts are taxed from the sender, not the receiver. So it would be up to them to claim the gifts.
If it’s a bonafide gift then it’s the responsibility of the sender.
If it’s a payment for services, then it’s income
It depends on the intent of the sender. Since you claim there’s no exchange of goods or services, then he’s sending you money as a gift. If this amount exceeds $19,000, then he has to file a gift tax return, but you as the recipient are not liable to report any of the amount of gifts received.
Let’s be honest. If you weren’t showing him the goods, would he be sending you money out of the goodness of his heart? No? Then it’s self employment income.
Even sex workers need to file income taxes.
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100% taxable income. I don’t care if he gift wraps it in a box and puts a bow on it. Its taxable income to you.
Dude no you’re overthinking this
I’d probably view these as being “tips” as it’s kind of a direct corollary of taxable income you get from OF. But the no tax on tips doesn’t apply to this so yes I’d say this is taxable income. It’s based on a business relationship not a personal one. From an IRS point of view, they don’t judge, they just want their share of everything.
Venmo reports it to the IRS, you should probably too.
It’s not a gift, and even if it was, IIRC, both you and him would have to declare it as such. Which is taxable after a certain point. But it’s not a gift.
Pay your taxes.
To clear up a few things. This person pays for your services on OF so you have a business relationship with this person (they pay for your content and services such as messaging etc). The IRS presumes all transactions between you are generally for business, not that there can’t be a legitimate gift given in either direction
That said, this sounds like income that you would include with your OF income (typically on schedule C). Be it additional income for more attention/special gifts/etc or as a way of tipping, it does not sound like what the IRS considers a gift
This is a great Question, as the rule of law was written before situations such as this existed, & I believe this is a total gray area, & would need to evaluate the total circumstances. You would need to well document your situation in case IRS comes knocking.
Let’s break this down bit by bit. 1st & foremost, what is the relationship between you & the giver?
Next would be receipt of the money for what exactly?
Receiving Venmo/Zelle/Merchant from other folks who do pay for some sort of service?
Has the giver given you more than $19k & did he file a gift tax return (Form 706)?
I represent clients before the IRS, such as Audits/ collections. We just wrapped up the audit for an OF model, whose tax return was prepared by a different firm, and they were unable to represent her. When our firm onboarded her, she was in the final stages with the initial 30-day notice showing a balance of $80k to the IRS. Almost in your exact situation, she received gifted items ( purses, watches etc). Which she would in turn sell and cash out the items. Although some were actual services provided, we did retro-bookkeeping & accounted for everything. Her situation was in the gray area; there was some underreporting of income, and the final balance was approx $17k.
It is best to sit down with a tax professional, review your overall sitaution & its worth the price to do tax projections & tax planning throughout the year to minimize any tax impact.
Sex workers pay income tax, even legal ones.. So yes
It is income for services provided as an entertainer. Now, if people declare it, is another topic, but legally, this is part of your income as an entertainer.
Is this not something that only absolute nerds do since no one checks? Or do you make a ton so the possibility of an audit is relatively higher than the rest of us.