Money loaded by the accountholder to a Greenlight account is similar to funds transferred to any other bank. Greenlight doesn't provide tax advice; please speak with a tax professional if you have additional questions.
What pay link payments will Greenlight report to the IRS?
Greenlight is not required to report friends and family payments to the IRS. Goods and services payments are required to be reported if the total items or services payments received by all children of a Primary Accountholder during a year is over reporting thresholds. The threshold for 2023 is $20,000, 2024 is $5,000, 2025 is $2,500, and after is $600. When Greenlight is required to report, the Primary Accountholder will receive a Form 1099-K with the total amount of the items or services payments. A copy of Form 1099-K is also sent to the IRS. To determine whether the amount on your 1099-K is classified as taxable income and how to include this on your tax return, please speak with a tax professional.
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