Paypal is now sending out 1099s after you pass $600 sales

[kdrogers71775]

Just letting everyone know. Be careful. Sales tax on 1099s is probably 30% or better. So watch using paypal merchant.

 

[BachelorJack]

Get an accountant.

You all should be using an accountant to file your taxes. Especially you OP.

 

[Mark M.]

If you have one of those anti-gun PayPal accounts, close it today, there's other options out there, it's time to quite bending over and draw the line!

 

[kdrogers71775]

What are the other options?

 

[cohunt]

Paypal warned of this quite a while ago-- people don't read contract rules (fine print) anymore these days--- lots of things you agreed to by using PayPal ( they can even take your $ and not give it back) for anything firearm related just ask hammer bullets -- paypal is known to be anti 2a, yet lots of gun owners keep giving them $$ --- paypal also owns several of the "e-pay" companies so do your research and make decisions that will work for you and what you want/need

 

[kdrogers71775]

Had no Idea that Paypal was anit-gun but im not surprised. Can anyone tell me a better option? Other than sending checks through the mail, etc? A different currency company, etc?

 

[glock24]

I assume this dollar amount excludes Friends and Family transactions

 

[kdrogers71775]

Yes, Friends and Family Paypal is NOT included. However.....alot of folks on here wont use F&F.....I just ran into this yesterday. Also....I figure it wont be too long before paypal (and our loving, communist leaders and Sleepy Joe) start regulating and tracking F&F as well. So i would like to find another option ASAP.

 

[JAYgs8163]

I spoke with my accountant who I've used for 25 years about PayPal/Venmo 1099 and he states they're only sending out this year if 20k or over for friends and family transactions for AML purposes. Also stated that if it's truly a FF type transaction and no gained income then you don't even have to report. You just keep it in your hard files with your tax return. The $600 threshold is not in effect yet and may never be. I trust his knowledge and understanding of the tax law as he's also my best friend, and my hunting partner, and owns his own practice. Speak with your accountant for advice and don't use hearsay as the tax law.

 

[kdrogers71775]

This isnt hearsay. I just read the paypal disclaimer this morning. If you dont send in a tax ID number they automatically start sending 24% of your sales to the IRS. If you do send a tax ID then they send you a 1099. I'll get a picture and post shortly.

 

[kdrogers71775]

We were prompted IMMEDIATELY when we attempted to receive funds from a sale.

 

[serorem]

I spoke with my accountant who I've used for 25 years about PayPal/Venmo 1099 and he states they're only sending out this year if 20k or over for friends and family transactions for AML purposes. Also stated that if it's truly a FF type transaction and no gained income then you don't even have to report. You just keep it in your hard files with your tax return. The $600 threshold is not in effect yet and may never be. I trust his knowledge and understanding of the tax law as he's also my best friend, and my hunting partner, and owns his own practice. Speak with your accountant for advice and don't use hearsay as the tax law.

Yeah I've read several places that the IRS pushed this back a year and wouldn't implement this until '25. But who knows, you can't put anything on the internet that isn't true.

 

[Berrnard]

i think this is over 600 PER sale(goods and services transaction) not over 600 in "sales"
cause i remember this wording from ebay over a year ago when this stuff came out with them, also ebay owns pp so makes sense

 

[JAYgs8163]

If you're business owner and have PayPal as a check out option I imagine you have different rules to adhere to then those of us using Friends and Family for transfers of money. Speak to your accountant for advice as he's the professional.