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PayPal 1099-K

January 24, 2024 02:00AM
Anyone else get one of these? I've been doing MS for a out 7 years now but this is the first time I have ever received one.
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January 24, 2024 03:20AM
Methinks it's something new circa 2023. When my accountant returns next week from his annual ski trip with our daughters *~) he will figure out what needs to be done with the form.
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January 24, 2024 03:24AM
@dafizisblue wrote:

Anyone else get one of these? I've been doing MS for a out 7 years now but this is the first time I have ever received one.

The IRS does not require a 1099 from PayPal. It has been delayed again until next year.
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January 24, 2024 05:12AM
The complete story is on the PayPal website: [www.paypal.com] For most of us, the change in thresholds to trigger a 1099K from PayPal have again been delayed, BUT I was surprised to find this:

"For residents in Vermont, Massachusetts, Virginia, or Maryland
If you live in the following US states, you’re subject to a lower reporting threshold:
Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions.

The Form 1099-K that you receive is based on your primary address on the last day of the previous tax year. If you changed your primary address to one of these states after that date, your account activity would be captured in Form 1099-K reporting for the following tax year."

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008
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January 24, 2024 05:14AM
Except for residents in Vermont, Massachusetts, Virginia, or Maryland. John, I know that you live in California. I was surprised to learn that there are exceptions. However, I do not live in an exception state either.
@johnb974 wrote:

@dafizisblue wrote:

Anyone else get one of these? I've been doing MS for a out 7 years now but this is the first time I have ever received one.

The IRS does not require a 1099 from PayPal. It has been delayed again until next year.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008
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January 24, 2024 11:40AM
Yep, I recently moved to Virginia. That must be it.
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January 29, 2024 07:59PM
I do live in an exception state and was issued one last year as well. I have also been told that I won't get a 1099 Misc from one of my companies so as not to double report.
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January 29, 2024 08:43PM
I live in MD and got a nice email from Servimer explaining all of this.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.
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January 30, 2024 09:28AM
My understanding is that Paypal is required to report the 1099 issued by them to us to the IRS, not you. If and when I get a 1099 from Paypal, it might just be placed in a round file. I am reporting my income to the IRS and the only 1099's I will use will be the ones issued to me by the MSC's.

@jazzzyyd,,,, Regarding the company that said they will not be issue you a 1099 because they don't want to "double the report," I think would be in violation of the law (if total payment is $600 or more). What is required of Paypal does not change what is required of them.

Edited 1 time(s). Last edit at 01/30/2024 09:35AM by 1forum1.
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January 30, 2024 02:05PM
Check with a tax professional. I personally was double-taxed for 2021. I got the letter from the IRS in 2023. They said I was underreported by the exact amount PayPal reported. I am still working with my accountant and the IRS to get it straightened out. Pay Pal reported all payments, including the reimbursements that were not taxable. The income was also reported by the companies in the 1099's. Please do not take our advice. We all have different experiences. Check with a tax professional.
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January 30, 2024 07:10PM
Agreed. Tax professional is the best resource. However, we are required to report income, and that is what I am doing. I doubt the way I file will change. It makes no sense, and it would not be accurate if I report 1099's from the MSC's and Paypal because in some cases I would be reporting the same income twice. For several reasons the problem is inherent with the Paypal thing. Apparently, the IRS is accepting the Paypal 1099 at face value. That's wrong, because as you stated Paypal includes reimbursements. Additionally, as I mentioned, the Paypal 1099 includes income that is already reported on other 1099's. We cannot straighten out this built in mess. All we can do is file correctly. We are caught in the fog of war, unintended consequences. It looks like this new Paypal thing, created to catch crooks, have caught us in the middle of the net too.
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January 30, 2024 07:26PM
OK. I just finished reading the topic 1099's in the Mystery Shopping Company forum, and I am totally confused. I doubt that the IRS, the MSC's, Paypal, tax professionals, or anyone on Earth knows what's what. No wonder there is a "delay until next year."

Edited 1 time(s). Last edit at 01/30/2024 07:27PM by 1forum1.
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January 30, 2024 08:42PM
@1forum1 wrote:

OK. I just finished reading the topic 1099's in the Mystery Shopping Company forum, and I am totally confused. I doubt that the IRS, the MSC's, Paypal, tax professionals, or anyone on Earth knows what's what. No wonder there is a "delay until next year."

It's nor about catching crooks, it's about taxing the low and middle income to pay more.
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January 31, 2024 04:03AM
@johnb974 wrote:

@1forum1 wrote:

OK. I just finished reading the topic 1099's in the Mystery Shopping Company forum, and I am totally confused. I doubt that the IRS, the MSC's, Paypal, tax professionals, or anyone on Earth knows what's what. No wonder there is a "delay until next year."

It's nor about catching crooks, it's about taxing the low and middle income to pay more.

John, I'm not going there. I know you are aware that notion has previously been thoroughly discussed.
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