1099 On Paypal Question

Has anyone gotten a 1099 on paypal?

Say all of your profit comes from selling items through goods and services for refunding, what would happen if you exceeded 20k and had to submit a 1099? Would you have to report all of your sales and pretty much perform an audit? Or just claim 20k and pay the taxes? Im curious cuz at this track I am on my way to clearing 20k next month, just wondering if I should switch up my paypal accounts when getting close.

What do?

Paypal reports to the IRS as soon as you hit 20K. If you dont want to pay taxes on it, you would need to stop accepting payments before that happens. Remember, the 20K is from year to year. It resets in January

Luckily you aren't in MA. They report taxes starting $600.
https://www.reddit.com/r/hardwareswa...d_a_1099k_for/

Originally Posted by itzsheng

Luckily you aren't in MA. They report taxes starting $600.
https://www.reddit.com/r/hardwareswa...d_a_1099k_for/

Omg so that's what was going on! We were receiving some 1099s and we werrr really confused because it hadn't happened before and we each had about $700 in transactions. I feel bad because my paypal was created by my mom and so it's under her name so she got a 1099 for my transactions.

Originally Posted by Thegodfocker

Omg so that's what was going on! We were receiving some 1099s and we werrr really confused because it hadn't happened before and we each had about $700 in transactions. I feel bad because my paypal was created by my mom and so it's under her name so she got a 1099 for my transactions.

holy fuck so you had to pay $1099 in taxes even if you only sold $700?

Originally Posted by ISellHoes

holy fuck so you had to pay $1099 in taxes even if you only sold $700?

If you lost receipt of what you were selling to write it off, you're screwed too. As well as taking a loss on some items. A lot of info is on that reddit post.

Originally Posted by ISellHoes

holy fuck so you had to pay $1099 in taxes even if you only sold $700?

No. 1099 is the name of the tax form.

Originally Posted by Academy Awards

No. 1099 is the name of the tax form.

Even I misread his post. lol

I would chill and just sell again when it resets or clear your shit and accept on an alt paypal with diff info.

To get a 1099k you have to have 20k + 200 transactions. Also you only pay taxes on profit. So say you grossed 30k but only "made" a few thousand you would not pay that much tax. Just throw the government some cash if you get a 1099k. Unless you are doing big money you most likely have any problems.

Originally Posted by yomama8888

To get a 1099k you have to have 20k + 200 transactions. Also you only pay taxes on profit. So say you grossed 30k but only "made" a few thousand you would not pay that much tax. Just throw the government some cash if you get a 1099k. Unless you are doing big money you most likely have any problems.

Not in your in MA. $600 compared to $20k

Thanks for the help guys, just going to purchase some new paypals whenever I get close.

Originally Posted by Dunder Mifflin

Thanks for the help guys, just going to purchase some new paypals whenever I get close.

You may want to buy now and put some history on them becasue if you buy one then start flooding it with money you will probably have some problems.

Originally Posted by yomama8888

You may want to buy now and put some history on them becasue if you buy one then start flooding it with money you will probably have some problems.

That is true, I was thinking about getting one of those no 21 hold ones. Might buy one of those but a business account if possible. Thanks for the suggestion!

Nope haven't gotten it before.

1099 On Paypal Question

Similar Threads