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The Magic Cafe Forum Index » » Tricky business » » PayPal and 1099-K: BEWARE SELLERS (1 Likes) Printer Friendly Version

magringo
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Sad that all I have is a scant
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PayPay is reporting sales as income to the IRS or to certain states. Sales over $20,000 for federal returns. 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. Illinois: $1,000 USD in gross payment volume from sales of goods or services in a single calendar year with at least 3 payment processed.

Short story is ... don't we all buy and sell magic (mostly as hobbyists) -- we're selling magic we no longer might want to perform or for whatever reason. But many of us still keep buying magic that does NOT offset the sales we might do.... and then again, many of us sell used magic at a loss from what we paid. These days because of the "tax reform" passed by Congress and signed by Trump -- many of us can't take deductions anyway. And who keeps track of postage and packing, etc.

IF YOU ARE FROM VT, MA, VA, MD, IL -- I'D WRITE TO YOUR STATE REPRESENTATIVES/SENATORS -- LETTING THEM KNOW HOW YOU FEEL ...

THERE IS ONE WORK-AROUND, BUT POSSIBLY NOT THE BEST SOLUTION -- MONEY SENT AS FRIENDS/FAMILY WILL NOT BE REPORTED AS INCOME ... AND WILL NOT BE INCLUDED ON 1099-K

Here's an article on the subject, but they leave out the issue of state reporting -- https://www.thestreet.com/personal-finan......latforms
rowdymagi5
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Virginia
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This will end up hurting private sales. Out tax code is a real mess!
illusioneer
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Ohio
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Or Venmo, or Chase QuickPay, or Apple Pay, or CashApp.

PayPal has been on its way out for a while now. It’s no longer the only option (and hasn’t been for ages).

We’re just going to have to start vetting sellers better and thinning out the herd of scammers. PayPal’s “buyers’ protection” (when it ever even works in your favor as a buyer...) isn’t enough to warrant paying taxes AGAIN on items you’ve already bought if you choose to sell them 2nd hand.

***Yes. I’m aware Venmo is owned by PayPal but they’re operated very differently. For now.
Things are about to change........ LIGHTS!!!
magringo
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Sad that all I have is a scant
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Venmo, ApplePay also trigger 1099-Ks.

"People sending money back and forth for their share of dinner don't have to worry about reporting such payments on their tax returns. However, the moment you begin accepting business payments on a P2P platform, you're responsible for reporting those earnings. P2P payment platforms, including PayPal, Venmo, Stripe, and others, are required to provide information to the IRS about customers who receive payments for the sale of goods and services through those platforms."
TomBoleware
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I think Paypal has been doing that for a long time. The policy in the past has been $20,000 or 200 sales (transactions) and it gets reported to the IRS.

As for as paying under friends and family, I would never do ‘business’ with a stranger that asked me to do that. The buyer cannot file a claim with paypal should something go wrong.

Tom
"Entrepreneurs are willing to work 80 hours a week to avoid working 40 hours a week"--Lori Greiner

www.tomboleware.com
Dannydoyle
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Eternal Order
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Quote:
On Jan 26, 2021, TomBoleware wrote:


As for as paying under friends and family, I would never do ‘business’ with a stranger that asked me to do that. The buyer cannot file a claim with paypal should something go wrong.

Tom


Exactly. It is a red flag for certain.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
rowdymagi5
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Virginia
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As a Virginia resident, I can not afford to use PayPal unless it is friends and family. Thanks Virginia! Just another reason to leave this over taxed state!
The Magic Cafe Forum Index » » Tricky business » » PayPal and 1099-K: BEWARE SELLERS (1 Likes)
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