Will you get a 1099-K for collecting team dues on Venmo?
Under current law, probably not: the federal threshold is back to $20,000 and 200 transactions. Here is how the rules actually work for volunteers collecting team money, and what the real risk is.
Published June 11, 2026
Short answer, under the law in effect for tax years 2025 and 2026: probably not. Venmo and PayPal are required to send a Form 1099-K only if your goods-and-services payments exceed $20,000 and 200 transactions in a year. A manager collecting $12,000 of dues from 15 families is under both bars. But the details matter, a few states set a much lower bar, and the form is not the real risk anyway.
The current federal threshold
Congress reset the rules in July 2025. The One Big Beautiful Bill Act retroactively restored the original 1099-K threshold, undoing the $600 rule that generated years of scary headlines. The IRS confirmed the change in October 2025: payment apps report only when both limits are crossed.
| Tax year | Federal 1099-K threshold |
|---|---|
| 2023 and earlier | $20,000 and 200 transactions |
| 2024 | $5,000 (IRS transition rule; forms already issued) |
| 2025 and 2026 | $20,000 and 200 transactions (current law) |
Two caveats. Platforms may still issue a 1099-K voluntarily below the threshold. And the threshold applies to third-party payment apps; direct card payments have no minimum.
Zelle never sends a 1099-K
Zelle moves money directly between bank accounts. It never holds funds, so it does not meet the definition of a third-party settlement organization and does not issue 1099-Ks at any amount. That changes the paperwork, not the taxes: income is taxable whether or not a form arrives, and pass-through dues are not income either way.
The tagging trap
Only payments tagged goods and services count toward the threshold. Personal (friends-and-family) payments are excluded and, per the IRS, should never appear on a 1099-K. The trap: some parents tag dues as goods and services on purpose, because it adds purchase protection. Those payments count toward your threshold even though nothing about them is income to you.
Some states set the bar far lower
State reporting rules apply regardless of the federal threshold, based on where you live:
| State | 1099-K threshold |
|---|---|
| MA, VA, MD, VT, DC, MT | $600 |
| IL | $1,000 and 4 transactions |
| NJ | $1,000 |
| AR | $2,500 |
| Minnesota | No state threshold; federal rules apply |
A Massachusetts team manager collecting $5,000 of mis-tagged dues gets a 1099-K. A Minnesota manager does not. Lists shift; check a current state table if you are near a limit.
If a 1099-K shows up anyway
Do not ignore it. The IRS computer-matches the form against your SSN. The IRS's own guidance for a form that reports personal, non-income payments:
- Ask the issuer (the "Filer" on the form) for a corrected 1099-K. Keep the original and the correspondence.
- File on time either way. Report the amount on Schedule 1, line 8z ("Form 1099-K received in error"), then back it out with an identical entry on line 24z. Net effect on your taxes: zero.
The IRS's common-situations FAQ treats gifts and reimbursements for shared costs as non-reportable and non-taxable. Dues collected and passed through to the team fit that pattern, though no IRS guidance names team dues specifically.
The real risk is the account, not the form
Even with no 1099-K, a season of dues in your personal account is a records problem. If the IRS, your association's board, or one suspicious parent ever asks, the burden of showing money-in equaled money-out is yours, transaction by transaction, mixed in with your groceries. That is also exactly the setup behind the documented embezzlement cases in youth sports: one volunteer, one personal account, no second set of eyes.
The clean answer is structural: dues should never touch a personal account. TeamTreasury collects by link and settles straight to the association's own bank, so there is no 1099-K exposure, no commingling, and a ledger anyone can check. See TeamTreasury for team managers.
This page is general information, not tax advice. It reflects federal and state rules as of June 2026; thresholds have changed several times in five years and can change again. For your specific situation, talk to a tax professional.
Questions
What is the 1099-K threshold for 2025 and 2026?
$20,000 in gross goods-and-services payments AND more than 200 transactions, federally. The One Big Beautiful Bill Act (July 2025) restored this original threshold and ended the $600 phase-in. Some states are lower: MA, VA, MD, VT, DC, and MT use $600; IL uses $1,000 and 4 transactions. Minnesota has no state threshold.
Does Zelle send 1099-Ks or report to the IRS?
No. Zelle transfers money bank to bank and never holds funds, so it is not a third-party settlement organization and issues no 1099-Ks at any amount. Actual income received through Zelle is still taxable; team dues passed through to the team are not income.
Do I owe taxes on team dues I collect for the team?
Dues you collect and pass through to the team are reimbursements for shared costs, which the IRS treats as non-taxable and non-reportable. The catch is proof: if the money runs through your personal account, the records showing money-in equaled money-out are your burden.
What if I receive a 1099-K for team dues by mistake?
Don't ignore it; the IRS matches the form to your SSN. Per IRS guidance: request a corrected form from the issuer, and file on time regardless, reporting the amount on Schedule 1 line 8z (Form 1099-K received in error) with an offsetting entry on line 24z. Net tax effect: zero.