Because it's a forum and there is a threaded discussion format. Do you not want me to read your stuff?
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1099 K From PayPal -
- Thread starter BostonJazz72
- Start date
Because it's a forum and there is a threaded discussion format. Do you not want me to read your stuff?
What if they are going after taxes that aren't owed?
I've seen it mentioned ">20K sales, + over 200 transactions"
Does "Transactions" only mean # of Sales or # of Buy & Sell total transactions combined?
Ex: If I sold 120 baseball cards, selling over 20k, but also bought 100 baseball cards, what's my paypal "transactions" total? 120 or 220?
Does "Transactions" only mean # of Sales or # of Buy & Sell total transactions combined?
Ex: If I sold 120 baseball cards, selling over 20k, but also bought 100 baseball cards, what's my paypal "transactions" total? 120 or 220?
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Your comment of "Tax evasion is a crime" seemed to be against people complaining about this and there is a more gray are between pay it / ignore it.
buldog5151bass
Kibble, milkbones, and P Basses. And redheads.
They aren't. Just like your gig income (assuming you are not running it as a hobby) you are required to keep track of expenses and income. If you can show you don't owe anything under the law, you don't pay any additional tax.
I disagree. It's just that the distance of a person to person sale has expanded.
This.
It's a very special receipt. One that you know has been shared with the IRS. So if it *does* represent actual income, you can know what to do.
I know I've said this a million times in this thread, but I'm repeating because nobody read the entire thread, myself included. A lot are seeing the 1099-K as a bill you must pay, and I think that is the intent. Easy money, hopefully they won't notice. No real business is going to haven an income of only $600 / year. But a lot of people will sell $600 of items online and get a scary looking 1099-K and just pay while blaming PayPal.
How many have you collected, so far?
Are you talking about current/new retail price list, or a price list relative to the actual age of the item in question?
Never had that happen before. I would be cautious because people often pose as PayPal trying to scam others. I’ve had many years where I’ve sold 4-$5k in gear on eBay, used PayPal, and never had to pay any additional taxes.
I can almost see it in full color in my mind...
Disheveled & confused looking bassist standing in a courtroom - "but your honor, the people on the internets on the bass website I waste time on told me that I didn't have to pay it"
The best advice here is to not take any advice given on the forum and talk to a professional if you have a question. Ultimately, at the end of the day, whatever actions you take will be yours to answer for.
Disheveled & confused looking bassist standing in a courtroom - "but your honor, the people on the internets on the bass website I waste time on told me that I didn't have to pay it"
The best advice here is to not take any advice given on the forum and talk to a professional if you have a question. Ultimately, at the end of the day, whatever actions you take will be yours to answer for.
I don't think anybody intended to mislead the recipients of these forms. Maybe PayPal didn't gauge their audience very well. Anybody with complex finances, probably including the people running PayPal, receive multiple 1099 forms every year from various sources. So they probably figured the typical recipient would say: "Oh, another tax form, throw it in the bag until tax time." But for a lot of regular folks who do not have things like investment accounts, an unexpected tax form might make them quite nervous.
I'm not an accountant, but it's my understanding that the IRS has a distinction between a business and a hobby, that might be useful.
I think if you are paid via Family and Friends it doesn't count towards the $600 payment limit. Asking for F&F is against forum rules.
I find it wildly unlikely that anyone would mistake a 1099-K as a bill, and even more wildly unlikely that they're being sent in hopes of collecting unowed money. Nowhere on a 1099-K is there an amount due, payment instructions, or even an address to mail a check to. There are only amounts received and withholding (if any) taken out. Where people may get screwed up - if they fail to read the IRS' own documentation - is if they think that, just because it's a 1099-K, it's taxable income. It may or may not be.
The amount of misinformation in this thread is really scary.
Yes, I've seen a few comments on TB about being charged tax on their sales. 99% sure they just added he 1099-K to their income. 90% of households take the standard deduction rather than itemizing.
