Pay pal Tax ID #

u812

u812

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Has anyone else got the emails about providing your tax id #?
I have gotten 2 and just gave them mine even though I will get no wear near the 20,000 dollar limit and most likely will not go over 200 received payments.The way I read it you must do both of these for it to apply.
Just do not like giving pay pal my SS#.
 
Are you talking about linking your bank account to your PP account?
Or trying to raise the limit of your funds?
I only ran into the whole "give this info which you don't really want to provide" when I tried to raise the funds limit that I could withdraw.
I took an alternate route and fired up a second bank account.
 
No,this is so they can send your received payment info to the IRS if you go over a set amount.
 
If they feel your getting close to either limit, they want the info before you hit it otherwise things get difficult for paypal when they are to report numbers. It's not that paypal wants that info, it's that the G is telling them they must have it.
I had read in a pp community post by a pp admin that it is one or the other that that requires them to report to the IRS, not both. Over 200 gets reported as would over $20K.
 
I think it is both,this is from the Q and A on Pay Pal

Will I be affected by the 2011 tax changes if I only meet one of the thresholds?

No. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 payments) in 2011 to be affected by the new requirements.

Hope this is the case.I am not trying to get out of anything but I have sold several items on ebay for friends and family because they do not have an account.I am not paying for them.Also IIRC you only have to report profits,if I buy a knife for 110.00 and decide I do not like it and sell it for 100.00 then it is a loss.
I am going to make sure I do not go over the 200 allowed for the year.
 
u812 said:
I have sold several items on ebay for friends and family because they do not have an account.I am not paying for them.
Click to expand...
If its ever big tag items, like a car lets say,(this is more of a in general to follow, somewhat on topic) it would be beneficial to create them a paypal account so you can plug their info into where you want payment to go when creating the ebay listing(a handy but easily overlooked feature). In my case, Ive sold a lot of stuff for my uncle this year on ebay, I dont want to hit that threshold if its not my $ (doin it as a favor, he sharpens my stuff). Luckily for me, he has a paypal account so I simply plug his info inn, log into his paypal and print labels. That simplifies the process a bit more since you will not have to compute S&H owed (that is if you do all the leg work like me), they will have to repay you for ebay fees of which you can send as a gift to your own acct, that is if you have permission to log into their account.
 
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As of right now I am no wear near the 20.000 mark but my received payments are around 150.
I know they are doing this because of all the dealers on ebay but it makes it hard on collectors and hobbyist.
 
I am for sure not going to sell and receive payments for other people any more.
 
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