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Taxes for sending money to friends and family?

New Community Member

Taxes for sending money to friends and family?

Will I be required to fill out any tax forms for sending and recieveing money to friends and family through paypal?

 

Are there any amounts that I should avoid going over?

 

I like it for the convienience, but should we just use checks, back and forth, instead?

3 REPLIES
Volunteer Advisor

Re: Taxes for sending money to friends and family?

Hi Mikemyers19232

 

Its free to send money to family/friends

 

See the link which explains more

https://www.paypal.com/selfhelp/article/FAQ690/10

Volunteer Advisor

Re: Taxes for sending money to friends and family?

@Mikemeyers19232

 

The link doesn't work.

 

But just to let you know that its only free to send to family / friends IF you fund it via funds in your paypal balance OR instant bank transfer.

 

IF you use a debit or credit card then you are charged a paypal fee.

Highlighted
Administrator

Re: Taxes for sending money to friends and family?

Hi Mikemeyers19232,

 

minty1 and kernowlass are both correct but I also wanted to chime in about the tax question.

 

Assuming you have a U.S. PayPal account, PayPal will only report transactions for goods and services if they meet the IRS thresholds.

 

We have more information about tax reporting on this page:

https://www.paypal.com/us/webapps/mpp/irs6050w

 

I hope this helps! Smiley Happy

 

- Frank

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