Taxes...Ahhh

[Auntof2]

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."

Massachusetts changed their rule to 1099-K's being required for $600 and up, and one other state may have as well. I have no experience with this, but have seen it reported on other financial forums I read so thought I'd share.

 

[kydisneyfans]

Late forms suck, especially after you file.

We are still waiting for a W-2 from my wife's employer.
Our daughter in law is waiting on a W-2 from her employer.
Our nephew is missing 2 of 3 W-2 forms.

Out of 5 tax returns I am doing, 3 can't be done.

 

[dtrain]

Where on PayPal do you find the 1099 information. TIA

Here's how you can access your tax Form 1099K online from within your PayPal account.

1. Click Activity.
2. Click Statements and select Tax documents.
3. Select the tax year you need.

PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:

• $20,000 USD in gross payment volume from sales of goods or services in a single calendar year
• 200 payments for goods or services in the same year

You can access your 1099K from your PayPal account by January 31st annually. Only those customers that meet the 1099K eligibility requirements will see the 1099K available for download in their account.

 

[aliceindisneyland]

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.

Nope. I don't make enough via PayPal to meet any threshold but they continually bug me for my ss#. Their leverage is that I can't transfer money from my bank into PayPal, but I can't imagine ever needing to do that! I have never received any document and they have been pestering me for years.

 

[MKCP5]

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.

Interesting as I got one this year too for the first time from them but it was for about 3K in income which is weird as they never sent me one in other years which had much higher income

 

[scard192]

I do surveys on line and cash out for PayPal and transfer to my vacation fund which is earmarked (and been used in 2013 and 2016) for a WDW vacation. I could get Disney Gift cards or Amazon but I like the flexibility of using PP so I can use the money for other things like airfare or an NCL cruise, Universal trip.

This is the first time I have gotten a 1099 from PP and they do not have my SS#. trying to decide what to do going forward as I don't want to tie up money in Disney GCs as I am not 100% sure when our next trip will be and already have a lot of Amazon GCs from my company health and wellness program.

 

[krysenchips]

I do surveys on line and cash out for PayPal and transfer to my vacation fund which is earmarked (and been used in 2013 and 2016) for a WDW vacation. I could get Disney Gift cards or Amazon but I like the flexibility of using PP so I can use the money for other things like airfare or an NCL cruise, Universal trip.

This is the first time I have gotten a 1099 from PP and they do not have my SS#. trying to decide what to do going forward as I don't want to tie up money in Disney GCs as I am not 100% sure when our next trip will be and already have a lot of Amazon GCs from my company health and wellness program.

Maybe go with the Walmart gift cards? They can be used at Sam's club as well and both Walmart and Sam's Club sell airline gift cards, Disney gift cards, and others. Not to mention you could do your shopping there.