I got a emailed 1099k from Paypal today says your getting this because you either had 200 transaction or received over $20,000. I don't have neither one so why would I get this.
I got a emailed 1099k from Paypal today says your getting this because you either had 200 transaction or received over $20,000. I don't have neither one so why would I get this.
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Maybe a scam
Maybe someone stole your Paypal identity? Definitely very suspicious.Originally Posted by bass.man65
In Massachusetts the limit is $600 plus before you get a 1099K. I believe that may be the new limit nationally. You will get taxed just like it was a small business . I have had this the past 2 years.
I had to show my accountant my expenses for shipping, boxes etc..... to help cut into my tax burden.
It was $20,000 a few years ago. You will need that form for your taxes.
You need to do a little research on this new 1099-K reporting requirement. It is supposed to apply to business income. Selling your used crap on ebay will not subject you to owing tax. If you can't figure it out, get a CPA who can.,
P01135809
Selling your used crap on eBay will now get you a 1099 and you will have to show a net 0 or loss once you reach $600 in sold crap or you are subject to paying tax starting in 2022
I still recommend doing your own research. I just completed 40 hours of CPE last week.
P01135809
You may wanna give 1 a call because that's exactly what you will be doing now.
If you can not prove the loss you will pay taxes on a resold purchase twice. Once during purchase once during the resale of the item. 600 total for the year regardless if it's 1 transaction or 50.
This is to pay for the "free" Covid stimulus monies. Pay Pal Venmo and other 3rd parties were not required to report, in the pasted, until 20k and 200 sales.
Last edited by NW.Ind.Basser; 01-25-2022 at 07:37 PM.
This $600 is for 2022 taxes not 21
The 2nd page says need to do over $20,000 or 200 transactions. I did $12,000 and 20 transactions.
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You are absolutely correct. The post I replied to, not so much.
I received one also, 1,100 in sales..
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Selling your stuff on Ebay if you have over $600 of sold items will absolutely get your a 1099K now regardless if its business or personal. I know, I sell alot on ebay and have gone over this with my CPA in the last week. I buy/sell/flip stuff on Ebay and use it as my own personal garage sale for my used stuff. I now keep a spreadsheet of how much the sale was, what I paid for the item, Ebay fees, and shipping along with my net profit number after fees and shipping. My CPA is the one who advised me on making a spreadsheet to show net profit. If you are selling your own used gear or items, you need to show out a net zero profit if you sell it for less than you paid but you need to have the accounting to show this. Ebay will only be showing the total on the 1099K and not what fee's came out of that total so a little work on the sellers part is a must. I told my CPA I didn't have receipts for my used gear I sell or from any garage sale items I flip and he said just estimate what I paid as best I can and that should be fine. Long story short, Ebay/Paypal/Venmo will all be sending the IRS a 1099K if you have over $600 in payments come in.
Ah the new "Gig" tax is revealing itself. Uncle Sam doesn't trust you to report your side gigs anymore.
I wouldn't trust anything that was emailed to me. Go to PayPal and look up your tax documents.
2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax
Nothing new about the requirement to pay taxes on sales via PayPal.
You were always required to report the income and pay taxes as required. What’s new is that PayPal is now required to report it to you and the IRS on a 1099. If you didn’t pay before, you were underpaying, albeit in a situation where you were unlikely to be caught.
If you have integrity, nothing else matters. If you don't have integrity,
nothing else matters.
It was not emailed only info from Paypal saying your tax doc 1099 is ready. You have to login to Paypal to look at it and print it.
04 521VX 250 Pro XS
14 521C 250 Pro XS
That isn't what your original post said. Still, I wouldn't (and don't) click on any links that are emailed to me from PayPal. I always go to the website directly.
2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax
Thats the old amount Obama signed in. Its now $600 they slid in another bill. Ebay/market place is going to be more expensive place to shop.
With E-Bay sales they are collecting taxes from the buyer for the seller and you now have your sales deposits go directly into your checking account and not using PayPal anymore for their transactions. I don't believe anyone should have received a 1099 from E-Bay.
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