The $600 threshold has been in place in MA for a couple years. If an entity sends an individual a 1099K then it is simultaneously sent to the state tax authorities. However, it is still up to the individual to classify the 1099K when filing his/her taxes, as not all PayPal payments are created equally. For example, someone who has a side business selling jewelry online for a profit and uses PayPal for payment receipt is much different than someone who cleaned out their attic and sold an old piece of furniture for $600.