Paypal 1099K Tax Law

[mr.thrifty]

Looks like money orders will be making a big comeback!

That and Properly used "gifts"....

 

[Randy_S]

About How much taxes would he paying on the $24,000 income?

Before any deductions roughly $9600. You must include the 15.3% that goes to SS & Medicare. I used to have about that much in 1099 income along with my W-2s and i had to send in a lot of money quarterly along with a huge payment every April.

Go to an accountant, don't even debate it. If these are your personal items you should be able to write off 100% of the cost.

 

[Star Puffs]

Too much.

I hear tax rates are low in Somalia.

 

[galactiboy]

Very stupid question, I'm sure: for the 200 transactions, does that only count incoming money, not money being paid?

Obviously, you wouldn't be taxed on money you paid, but say you had 50 payments incoming, and 200 payments outgoing...

Yes, 200 sales transactions and $20,000 in sales.

 

[Legendary Hunter]

I just checked my history for 2011, I only received around $14,000 for payment, but damn this sucks for those that broke $20,000 and it wasn't even 100% profit, I hope you guys work it out.

 

[mmmmBrains]

So you have to have received 20k AND 200 payments? Or is it one or the other? I think that's what galactiboy is saying. Just want to confirm?

 

[WolfPredatorAVPR]

Another stupid question but if I have not heard from paypal as of yet does that mean I am clear for the 1099? I added up all my transactions to being 183 and a few grand under 20k in sales...which is no where near profit dollars. I sound like another bafoon but I have heard nothing about this up till just right now. Glad I decided to take a small break on my ebay sales toward the end of the year.

 

[Star Puffs]

So you have to have received 20k AND 200 payments? Or is it one or the other? I think that's what galactiboy is saying. Just want to confirm?

200 transactions alone is a trigger. I am absolutely certain that I received no more than $5,000 last year, but still had them requested my SSN.

 

[hydrobud]

you need to speak to an accountant. i believe you would only pay on the profit you claim since they are collectibles. i believe you can also get a deductible if you lose money on selling the same collectibles. bottom line is talk to your account or whomever does your taxes

 

[toyadventurer]

Another stupid question but if I have not heard from paypal as of yet does that mean I am clear for the 1099? I added up all my transactions to being 183 and a few grand under 20k in sales...which is no where near profit dollars. I sound like another bafoon but I have heard nothing about this up till just right now. Glad I decided to take a small break on my ebay sales toward the end of the year.

All 1099's are due out by January 31st so you are most likely ok. You can also check the history link on your Paypal account where you will see another link for tax documents. Mine said "you have no 2011 tax documents".

 

[mmmmBrains]

200 transactions alone is a trigger. I am absolutely certain that I received no more than $5,000 last year, but still had them requested my SSN.

Feck. No good.

 

[WolfPredatorAVPR]

All 1099's are due out by January 31st so you are most likely ok. You can also check the history link on your Paypal account where you will see another link for tax documents. Mine said "you have no 2011 tax documents".

I see that now with no documents in the folder. What is funny to me is paypal says on the rules that you have to have over 200 transactions in addition to over 20k in sales. They are saying it requires both on the page I was reading. Weird that people with 200 transactions, even with low sales are getting them. I was about 15 under in the transactions dept and around 3k in sales.

 

[mmmmBrains]

All 1099's are due out by January 31st so you are most likely ok. You can also check the history link on your Paypal account where you will see another link for tax documents. Mine said "you have no 2011 tax documents".

Mine says I have no 2011 tax documents, but they did ask for a SS awhile back which I gave them. Hmmm. Guess I just wait for the form?

 

[ashkanls]

Mine last night mine said no tax documents but I got my 1099 in the mail today! So those of you who think you are opff the hook because it doesn't say it dont hold your breath. I had 4 months where I had more then $8,400 in volume each.

 

[Buttmunch]

What the heck are you guys buying and selling? $20,000 is a LOT. Period.

 

[mmmmBrains]

I didn't sell anywhere near that amount. More like around 6k.

 

[VS1976]

Does this affect Canadians?

 

[Buttmunch]

Does this affect Canadians?

Do you pay US income taxes?

 

[mmmmBrains]

Do you pay US income taxes?

 

[VS1976]

Do you pay US income taxes?

Used to...