Originally Posted by Scissor Queen
You are actually supposed to report ALL income no matter the source. Keep good records. Even if you're under the threshold to generate the 1099 you are still supposed to report the income.
Reporting the income is the big issue here..it is that ANY & ALL paypal transactions will count as income...even if you send your kids a gift/allowances, etc...they would have declare it as income!
If YOU get gifts or money owed sent to you via paypal or any other electronic payment service it counts as income.
and my CPA says only if you make over $600 in a yr do you have to declare it as income!