Taxes...Ahhh

[aleh021]

Hi disboards fam,

I feel totally totally so stupid right now. I filed my taxes for this year. Everything was accepted, refund approved, all set.

Today I come home from work to find another tax form I was totally unaware would even come. Its a 1099-K form from PayPal.

Now I understand that I will have to amend my tax return but in all my years of doing taxes this is a first for me and now I feel so nervous about this whole situation and so stupid. I always do my taxes on my own with TurboTax and have never had issues.

Has this ever happened to anyone? Oh man

 

[wendow]

This happened to me last year! I vowed after that to never file as early again. Anyway, I amended through Turbo Tax. It was easy to do so! I love Turbo Tax and how easy they make it all!

 

[aleh021]

This happened to me last year! I vowed after that to never file as early again. Anyway, I amended through Turbo Tax. It was easy to do so! I love Turbo Tax and how easy they make it all!

Ugh this is the first time I ever did them so early! I thought I had everything, it was a simple year, nothing crazy. Then BAM!

Glad to hear it was an easy process to amend with Turbo Tax! They have super user friendly systems. This whole just freaked me out.

Can they take care of State Amendments as well?

 

[wendow]

Ugh this is the first time I ever did them so early! I thought I had everything, it was a simple year, nothing crazy. Then BAM!

Glad to hear it was an easy process to amend with Turbo Tax! They have super user friendly systems. This whole just freaked me out.

Can they take care of State Amendments as well?

I hadn't done my state taxes yet at the time so I am not sure how that works but yes, their system is so friendly, I am guessing you can take care of both through TT. It was really pretty painless.

 

[SUSIEQ]

Just curious. Why did you get a 1099 from PayPal? Just hoping they don't send me one for something. Thanks.

 

[Hisgirl]

Just curious. Why did you get a 1099 from PayPal? Just hoping they don't send me one for something. Thanks.

It appears paypal and any online payment processor reports and sends out a 1099 for a person who has over $20,000 in gross sales/services or receives over a certain amount of individual payments.

 

[SUSIEQ]

It appears paypal and any online payment processor reports and sends out a 1099 for a person who has over $20,000 in gross sales/services or receives over a certain amount of individual payments.

Thanks. In that case, I don't have to worry about receiving a 1099 from PayPal!

 

[RN2003AZ]

It appears paypal and any online payment processor reports and sends out a 1099 for a person who has over $20,000 in gross sales/services or receives over a certain amount of individual payments.

I received one yesterday too. But I have no where near $20k in sales. Mine was for a little over $900. My husband and I are totally perplexed by this as I’ve never gotten one before.

 

[TwoMisfits]

1099-Ks are only required to be issued for that 20K level (OR 200 individual payments). However, that's the minimum requirement for Paypal - but Paypal can issue these forms for any level of sales or payments b/c the seller would need to be reporting the income regardless...so, it sounds like Paypal might have gotten a visit or a nudge from the IRS this year, and that this may be a "highlight area" for the IRS to look for abuse in...so if you get one, I'd be amending anything and everything to include it...

From H&R Block
"When is Form 1099-K Issued
Not everybody who uses such a service will receive a Form 1099-K, because technically the form is not required to be issued unless:
The service processed more than $20,00 worth of payments, and
The service processed more than 200 individual payments.
If you do not meet both of those requirements you are not required to be issued a Form 1099-K. That being said, that rule is just when the form is actually required. Many entities that process card payments on behalf of their customers will issue a Form 1099-K when the amount of payments and number of payments are far below this threshold. Some will even issue the form when there is a little as one transaction processed during the year.

IRS Enforcement of Form 1099-K Reporting
When it first debuted in 2011 Form 1099-K was treated as almost a second thought. In fact, there was even a special line on the Form 1040 for amounts from the form that taxpayers were specifically instructed to ignore.
Since then, the IRS has started contacting taxpayers whose gross business income is less than the amount reported on the form."

 

[aliceindisneyland]

And that is why I won't give PayPal my ss#!

 

[Dakota731]

I thought businesses have to mail forms by January 31? The past two years I’ve gotten tax forms in March from a financial institution, so I’m waiting till the last minute this year.

 

[usnuzuloose]

I thought businesses have to mail forms by January 31? The past two years I’ve gotten tax forms in March from a financial institution, so I’m waiting till the last minute this year.

This happens to us every year, they are always late. I looked up on company's that send out late, Yikes. Very heavy fines for the employer.

 

[usnuzuloose]

We get 1099's as we are sub contractors. They always give out these forms late. I am so sick of them doing this. We only get a few. 1099's you have to pay everything that an employer would pay. We have to pay taxes quarterly. Every 3 months. And we also sell in other places but not through paypal and have a sales permit and have to turn in our sales for the year as well. We have the business we sell through pay the sales tax.

 

[runwad]

Hey I'm interested, does anyone know if you correct thru turbo tax do you have to pay a fee again to do so?

 

[Simba's Mom]

Hi disboards fam,

I feel totally totally so stupid right now. I filed my taxes for this year. Everything was accepted, refund approved, all set.

Today I come home from work to find another tax form I was totally unaware would even come. Its a 1099-K form from PayPal.

Now I understand that I will have to amend my tax return but in all my years of doing taxes this is a first for me and now I feel so nervous about this whole situation and so stupid. I always do my taxes on my own with TurboTax and have never had issues.

Has this ever happened to anyone? Oh man

I'm a tax preparer, and from what I've seen, you've got plenty of company. Lots of people forget about things they didn't expect. The only thing I wonder about is people who come back to amend their return because they received a W2 from a job they didn't remember. I'm a little confused-how can you forget a job?

 

[aleh021]

I'm a tax preparer, and from what I've seen, you've got plenty of company. Lots of people forget about things they didn't expect. The only thing I wonder about is people who come back to amend their return because they received a W2 from a job they didn't remember. I'm a little confused-how can you forget a job?

Forgetting you had a job is concerning. Haha.

I sold something online and they paid me through PayPal. Didn't even realize that it would generate a 1099-K form. I work for a financial institution and know about 1099s, 1098s, etc. But never a 1099-K. Dollar wise it wasn't much.

My refund did get approved, but if I am correct, once I amend my taxes I will just pay the IRS what I owe them back and state of Massachusetts if it effects it?

 

[Tigger2ntinkerbell]

Where on PayPal do you find the 1099 information. TIA

 

[Anthony1971]

And that is why I won't give PayPal my ss#!

This is poor advice as Paypal or any other company in which a 1099 is due to a person will be sent even if you do not supply your Social Security number and it will be matched up by the IRS by your name and address this is the requirements should a person refuse to supply their social security number or EIN. Further Paypal may be required to withhold the taxes to any future payments you receive. The rule for 1099K is as stated above but their are lower thresholds in certain states I know MA is one of them... The 1099K may only get sent to your state in that case as it is not required by the IRS.

 

[supersnoop]

Forgetting you had a job is concerning. Haha.

I sold something online and they paid me through PayPal. Didn't even realize that it would generate a 1099-K form. I work for a financial institution and know about 1099s, 1098s, etc. But never a 1099-K. Dollar wise it wasn't much.

My refund did get approved, but if I am correct, once I amend my taxes I will just pay the IRS what I owe them back and state of Massachusetts if it effects it?

Just because they send a 1099-k doesn’t mean you own any additional taxes or even need to amend your return.

 

[georgina]

I thought businesses have to mail forms by January 31? The past two years I’ve gotten tax forms in March from a financial institution, so I’m waiting till the last minute this year.

Not true. Brokerage accounts and mutual fund places have until Feb 15 this year. My DH was part of an amateur investment club for a while and we got that form whenever the treasurer got around to it.