Great news! Your Honeyfund gifts are not taxable in the United States, and while we are not tax experts, we can provide some general information.
We understand that the term 'Goods & Services' may raise concerns about fees and taxes. However, in this context, ‘Goods and Services’ is simply a requirement for PayPal’s integration with Honeyfund since we operate as a business. Rest assured, under our agreement with PayPal, your redemptions are treated as gifts. This means there are no extra fees typically associated with ‘Goods and Services’ transactions, and the funds are not taxed.
Couples who choose to receive their Honeyfund gifts through PayPal are not subject to taxes on these gifts and do not receive tax forms. To date, no Honeyfund couple has received a 1099 form for PayPal or Venmo redemptions. However, if this ever happens accidentally, we have straightforward instructions from PayPal and the IRS on how to ensure these funds are correctly identified as non-taxable.
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