just got me a paypal 1099k

[Glynn Sr]

everything is good here. just making everyone aware !!!

[Bosco685]

Bosco runs bartertown

 

[THB]

Did they mail it to you?

[NinjaSealed]

Wait, so how exactly is the 20k calculated? is it 20k processed through account total? ie payments, transfers, withdrawals, deposits, and sales total? I always thought it was if you sell 20k plus you get the 1099.

[Shaven Kev-migration]

from the FAQ here

 

How is the $20,000 calculated? Will it be calculated based on net or gross transaction earnings?

As required by IRC 6050W, the $20,000 will be calculated by looking at a seller’s gross payment volume for sales of goods or services. Gross amount means that any adjustments for credits, cash equivalents, discounts, fees, refunded amounts or any other amounts will not be netted out.

 

In addition, the reported amount will include any shipping and handling, sales tax or other fees which are included in payments you receive. We realize that these amounts may or may not be included in your taxable income, but we are required to report them. You should work with your tax advisor to determine how these items should be treated for tax purposes.

[Bosco685]

Kev, will you serve as my tax advisor?

[mschmidt]

Its a certain threshold of transactions AND amount of money going through the account. Like 200 transactions and total of $20k in goods and services processed...

 

Incorrect. It is "OR".

 

You can also get it online.

 

Not according to PayPal, its "and."

 

Unless this page is out of date.

 

That's correct - you have to fulfill both criteria to get the 1099.

[Shaven Kev-migration]

Kev, will you serve as my tax advisor?

 

I advise you to pay taxes (thumbs u

[Mayor006]

Kev, will you serve as my tax advisor?

 

I advise you to pay taxes (thumbs u

 

Now just wait until you get his bill.

[Shaven Kev-migration]

Kev, will you serve as my tax advisor?

 

I advise you to pay taxes (thumbs u

 

Now just wait until you get his bill.

 

treefiddy!

[Gsims718]

Its a certain threshold of transactions AND amount of money going through the account. Like 200 transactions and total of $20k in goods and services processed...

 

Incorrect. It is "OR".

 

You can also get it online.

 

Not according to PayPal, its "and."

 

Unless this page is out of date.

 

That's correct - you have to fulfill both criteria to get the 1099.

 

Correct, and it should be gross payment volume -

 

What is Internal Revenue Code (IRC) Section 6050W?

 

Under the legislation, we'll report to the IRS the total payment volume received by US account holders whose payments exceed both of these levels in a calendar year:

 

US$20,000 in gross payment volume from sales of goods or services in a single year

200 separate payments for goods or services in the same year

 

[Bosco685]

Kev, will you serve as my tax advisor?

 

I advise you to pay taxes (thumbs u

 

Now just wait until you get his bill.

 

treefiddy!

 

But what about items bought in a Clooneython? Does the IRS force you to account for bad investments purchased for the sake of good, unclean fun?

[Shaven Kev-migration]

I think Clooney has to file those on his taxes

[vaillant]

I apologize for my ignorance but, what is a 1099?

 

Also not sure how this applies to European PayPal users (although I have been a PayPal user way before PayPal Europe existed).

 

Not having a "Pro" account I recalled they sent me a message once because I had about 1000 Euros on the account, which was not allowed in a basic account, so I just transfered the money to my bank account.

[toytastik]

humm good to know - I better start planning now. How do you guys handle this.

 

You should have always been reporting your hobby sales on schedule C.

 

Just because paypal is sending this information on 1099 shouldn't change what you were always "required" to do.

[Shaven Kev-migration]

I apologize for my ignorance but, what is a 1099?

 

Also not sure how this applies to European PayPal users (although I have been a PayPal user way before PayPal Europe existed).

 

Not having a "Pro" account I recalled they sent me a message once because I had about 1000 Euros on the account, which was not allowed in a basic account, so I just transfered the money to my bank account.

 

Its a US tax document. Just forget you ever came in here.

[vaillant]

[MrBedrock]

 

Now just wait until you get his bill.

 

treefiddy!

fofiddy.

[The Less Blob]

post deleted.

[faster friends]

we got a 1099 for the paypal account and we were way under $20K, in fact, under $10K and I doubt 200 transactions either.

 

i think the info only gets reported to the IRS if you are over $20K, etc.

 

Something don't sound right here??