jaciqltznok

This is now on the home page of Paypal! Scroll down to see all the FAQ's posted.


https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W]https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W[/url]

kriscraft99

thanks for posting

I'm glad the rules only affects those that sell over $20,000.. so it definitely won't apply to me..

Rebecca VLQ

Thanks for the info!!! :D

MTS

AND have over 200 transactions.

That "AND" is really important.

If you were to sell a used car, or a trailer, or business equipment, or some other big ticket item, then you also would NOT be receiving a 1099, even if it totals over $20K.

kriscraft99

very true :thumbup:

sueisallaboutquilts

Does this mean if I have 200 transactions at say 10 bucks each I have to report it???
This issue has been bugging me! Thanks :D

kriscraft99

that would only add up to $2,000 - you have to meet both of the requirements, 200 transactions AND $20,000... whewwwwwwww :thumbup:

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.

jaciqltznok

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!

MTS

From the PayPal page:

Are personal payments that I receive counted in the total that will be reported to the IRS?

No. Personal payments that are not payments for the sale of goods or services will not be counted in the total to be reported. However, all payments received for the sale of goods and services will be used to calculate the gross payment volume to be reported.
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Also, the $600 limit is a reporting requirement for the vendor. Iow, I don't have to issue you a physical 1099 if you did less than $600 worth of work for me. Now, of course, the IRS would have no idea that you did the work, but that doesn't mean you don't have to report it.

Now, what you do is your own business, I'm not making a judgment call on you.

And this is actually a HUGE issue today. If you (that's a general "you") don't report the income, then you're not paying taxes on it. Federal, state, local, SS/Medicare. And those people are looking for every freaking penny they can possibly scare up. So while in the past, some independent contractors might have lost a 1099 form or didn't report the $599 worth of work they did, the tax collecting agencies are trying to figure out how to go after them, including trying to redefine and finally enforce the distinction between a 1099 contractor and a W2 employee.

However, for your professional accountant to say that to you..........wow.