PayPal and income taxes

[Webfly]

Sure seems like many are overthinking this and making much ado about nothing…

[sanderson]

Sure seems like many are overthinking this and making much ado about nothing…

Agree! 1099 K is NOT a filing document, it is an information doc. Though the IRS receives it, you are not required to list the amount on your income if you sold for less than your purchase price, or have handling expenses that wipe out any profit. Now, if you receive several 1099 K's, that would be a trigger to the IRS that you are likely a business, therefore subject to taxes. They are not going after hobbyists or one-off sellers, they are trying to recoup taxes for online businesses.

[Tommasini]

Sorry for your predicament. As I said before , as they say, elections have consequences . The vast amount of money they want to spend on social issues , has to come from somewhere.

[davemaine]

I thought personal political opinions were not allowed on this forum?

[jim royston]

My accountant would beg to differ about the reporting of 1099's. For 2 decades +, my only form of compensation was reported by 1099's. That sum was reduced by my expenses, categorized. Retired for 12 years, my return is composed of a bundle of 1099's that my accountant has to reconcile. How I wish I could just say to myself "I didn't make any money, so I don't have to worry about these slips of paper"

[sanderson]

There isn't a line on either the 1120 or 1040 tax forms for a 1099K. The amount on a 1099K reported to you, and to the IRS, by the third party payment company is for informational purposes. Naturally, if it IS income, it should be considered as such, if it isn't it is up to the IRS to question why, and you to explain/prove why not. 1099 Misc IS an income document, and as you stated, is reconciled and reported as income. No one suggested saying "don't worry about these slips of paper". When I receive my 1099K (for 30 years), it counts for nothing. It is a report on what percent of my sales were credit card transactions. My sales are what is reported, IRS doesn't care if 1/2 were cc and 1/2 cash, they care that all sales get reported.

[Vaughanwilson3022]

IRS has suspended this to tax year 2023 - so no 1099k for 2022.

[kenwey4534]

IRS has suspended this to tax year 2023 - so no 1099k for 2022.

Where did you get that information?

[Vaughanwilson3022]

Google search and result on IRS website.

[kenwey4534]

Vaughanwilson3022 Thanks for the info

[Hellmtflies]

IRS has suspended this to tax year 2023 - so no 1099k for 2022.

Thanx! That's what I thought.

[JohnMD1022]

And how are you supposed to prove what you paid for an item 50+ years ago?