Personal and Business Use Tax Reporting
I mistakenly used my Cash App for Business account for both business payments and personal payments. What can I do?
Remember that business accounts are only for selling goods and services and not personal payments to friends and family. If you used your business account for personal payments and receive a Form 1099-K, you may still be able to include adjustments on your tax return to reduce your taxable income. Refer to IRS Fact Sheet 2023-06 or IRS Form 1040 Instructions for more info.
The IRS has emphasized in news releases and FAQs that personal payments received through payment apps are not taxable. For example, if you used your business account to receive both business and personal payments, many of those personal payments (such as gifts, reimbursements for cab rides or dinners, etc.) may not be reportable income. Please note that Cash App is not permitted to provide you with tax advice regarding whether particular payments are reportable income.
You should create a separate personal Cash App account to avoid reporting personal payments as business income. See this article for steps on how to create a second account for personal payments. You will need to use a different email and phone number than you used to create your Cash App for Business account.
How do I prepare for tax season?
We’ll send you a Transaction CSV statement in January for easy review. The statement, your Form 1099-K, and any other relevant tax info may be shared with a tax advisor to consider any appropriate adjustments on your tax return to reduce your taxable income. If you use an electronic tax preparation service, follow the prompts in the app to accurately report your income.
To download your documents in-app:
- Go to the profile icon on your Cash App home screen
- Continue to Documents
- Choose the Business Accounts Taxes section
- Select a year, then 1099-K or Transactions CSV
For any additional tax info, please reach out to a tax professional or visit the IRS Form 1099-K Payment Card and Third Party Network Transactions site.
For answers to more Tax Reporting FAQs, check out this article.