Paypal 1099/Payment Cards 0

[Shrevvy]

Paypal 1099/Payment Cards

For the first time, I received a 1099 from Paypal for my personal buying and selling account. The documentation shows that you will receive a 1099 if 1) you receive $20,000 and exceed 200 transactions in a year or 2) accept payment cards for payments. I was no where near the $20,000 limit having received ~$6,000+ for all of 2016. I assume the "accept payment cards" is a new threshold for them to send you a 1099? When did I agree to accept payment cards and how can I change it so that I do not? I have looked through my settings but cannot find anything related to payment cards. I assume if I find and change this setting, I will not receive a 1099 in 2017?

[CKB]

https://www.paypal.com/us/selfhelp/article/how-does-paypal-report-my-sales-to-the-irs-will-i-receive-a-1099-tax-statement-faq729

Not sure where the 2) comes from in your post.

[CKB]

Ah, more info here.  It was news to me.

https://www.forbes.com/sites/kellyphillipserb/2014/08/29/credit-cards-the-irs-form-1099-k-and-the-19399-reporting-hole/#44f0d1691ae8

 

[the blob]

I have a headache after reading that.

[the blob]

I didn't get any form.

[Shrevvy]

1 hour ago, CKB said:

Not sure where the 2) comes from in your post.

#2 comes directly from the 1099K provided to me by Paypal (it is actually #1 on their form). I clearly did not meet the $20k/200 transaction threshold, but apparently received payments through a "payment card" at some point during the year. I wish to turn off the ability to receive payments through cards and only receive payments from Paypal funds. I can't see a way to do that though. If anyone can help, it would be appreciated.

I will also be cognizant of this when paying others now. I know I have used a credit card to pay through Paypal when my Paypal balance was not sufficient. If that has triggered a 1099k for others, I am sorry.

Stupid paperwork.

[Aweandlorder]

On a sorta related story I just did my taxes for the first time without an accountant with credit Karma and can't recommend their service enough..

very pleased!

[Action252Kid]

6 hours ago, Shrevvy said:

#2 comes directly from the 1099K provided to me by Paypal (it is actually #1 on their form). I clearly did not meet the $20k/200 transaction threshold, but apparently received payments through a "payment card" at some point during the year. I wish to turn off the ability to receive payments through cards and only receive payments from Paypal funds. I can't see a way to do that though. If anyone can help, it would be appreciated.

I will also be cognizant of this when paying others now. I know I have used a credit card to pay through Paypal when my Paypal balance was not sufficient. If that has triggered a 1099k for others, I am sorry.

Stupid paperwork.

I'm not exactly sure how PayPal is defining a "payment card", but I would be shocked if there was a way to turn off this ability (assuming "payment card" means credit/debit card).  I always pay with a credit card (might as well take advantage of the free cash back perks), and not once have I not been allowed to do this.  If you're selling on eBay and getting paid through PayPal, I'm certain that this can't be turned off -- if you are accepting PayPal through your own site or board sales, it might be possible but I would be pretty surprised.  

[FN-2199]

16 hours ago, Action252Kid said:

 I always pay with a credit card (might as well take advantage of the free cash back perks),

I thought PayPal put the 2-3% credit card fee on the buyer when you checked out. It's hard to find a cash back rewards program that offers 3+%.

[lizards2]

2 minutes ago, FN-2199 said:

16 hours ago, Action252Kid said:

 I always pay with a credit card (might as well take advantage of the free cash back perks),

I thought PayPal put the 2-3% credit card fee on the buyer when you checked out. It's hard to find a cash back rewards program that offers 3+%.

The seller eats it if it is a business transaction, not the buyer.

 

[FN-2199]

1 minute ago, lizards2 said:

The seller eats it if it is a business transaction, not the buyer.

 

OK, I thought they stuck the buyer with the credit card charge to encourage using PayPal funds or bank transfers.

[DougC]

As someone who does a lot of contract and consulting work every year I receive 1099's after I have filed my taxes (as late as June! despite the law).  After 15 years of this I stopped stressing about it and simply file them unreported with the rest of the tax info in case one day I get selected for an audit.  I am not making light of properly doing your taxes as that would be a legal concern, but it is what it is.

[VegasJeff]

This is a good post as I was thinking of posting something similar. 

I would have to double check my numbers but I'm pretty sure I exceeded your $6000 through Paypal. I know for certain I did not exceed $20,000. 

I'm curious did you have more than 200 transactions? I only had several dozen for hundreds of dollars each.