Bad Paypal 1099

I'll be happy if this turns out to be the case. I've been considering cutting down on my acculation of knives for awhile, but I won't use PayPal F&F or Venmo etc ... to sell anything so I've put it off because it would just be a huge hassle.
 
Suddenly, my circle of Friends and Family got inexplicably smaller. :)

(One would hope this is the PP G+S comeback but I’m not holding my breath)
 
ferider said:
Suddenly, my circle of Friends and Family got inexplicably smaller. :)

(One would hope this is the PP G+S comeback but I’m not holding my breath)
Click to expand...
It's a shame we still can't count on PayPal to be systematic or at least not schizophrenic about the "No Weapons" rule. I have always been staunch about using G&S, and I didn't have a problem reporting sales for taxes last year and the year before, but you just can't trust PayPal not to randomly hold your money or suspend your account without effective appeal, and they won't clarify their user policies as they apply to knives.
 
Well good news for some and looks like my state is following along with the new rules.

I’ve been looking at Apple Pay / Apple Cash as an alternative to PayPal. I know I can’t use them all. So I figure for those that don’t use one of these it’s check or money order. I have no problem with a check especially if I’ve had deals with the person. Money orders I accept. And usually if I’m sending one of the two I use priority shipping with a tracking number.

Ok end of my ramble lol
 
Blues said:
I can't vouch for this but this is where I got my bad news:

docs.stripe.com

1099-K form state requirements

View the state requirements for 1099-K forms.
docs.stripe.com docs.stripe.com
Click to expand...

So, help me out....is Filing Threshold "Same as IRS" good news?

My apologies, it's kinda info overload for me with the other columns.

I'm specifically looking at Tennessee....what's your prognosis, Doc Blue? No sarcasm, please, it's hard to tell if bad means good when typing over the interwebs, thanks!
 
I think so, Petey. You'll notice that NC, my state, says $600. So, I believe that's the case. Now, I didn't see when it was last revised.


TN appears to adopt the federal limits...rather than impose their own. (So you'd be good to go.)
 
Blues said:
I think so, Petey. You'll notice that NC, my state, says $600. So, I believe that's the case. Now, I didn't see when it was last revised.


TN appears to adopt the federal limits...rather than impose their own. (So you'd be good to go.)
Click to expand...

Yipee! Maybe common sense isn't extinct yet! Thanks!
 
I received an email from EBay today advising that they had been able to reverse the current tax rules and that the limits on the 1099 K had been returned to 200 transactions and $20k per year. For us, if this proves true, it means that we can go back to using PayPal Goods and Services in the U.S. without exposing ourselves to additional tax issues, which should reduce the plague of fraud that we have been experiencing on the Blade Forums Exchange.

Let me know if you have received or confirmed this information.

N2s
 
not2sharp said:
I received an email from EBay today advising that they had been able to reverse the current tax rules and that the limits on the 1099 K had been returned to 200 transactions and $20k per year. For us, if this proves true, it means that we can go back to using PayPal Goods and Services in the U.S. without exposing ourselves to additional tax issues, which should reduce the plague of fraud that we have been experiencing on the Blade Forums Exchange.

Let me know if you have received or confirmed this information.

N2s
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But if you're in one of the states that already enacted a lower threshold, still screwed.
 
Blues said:
I can't vouch for this but this is where I got my bad news:

docs.stripe.com

1099-K form state requirements

View the state requirements for 1099-K forms.
docs.stripe.com docs.stripe.com
Click to expand...
I'm guessing the IRS just hasn't had time to update their website as yet:

Understanding your Form 1099-K | Internal Revenue Service

Form 1099-K reports payments from payment apps or online marketplaces and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.
www.irs.gov www.irs.gov

The relevant part:

"Reporting threshold​

Third party settlement organizations (TPSOs) – which means (payment apps and online marketplaces – are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds:

  • $5,000 in 2024
  • $2,500 in 2025
  • $600 in 2026 and after
Although the reporting threshold is phased, you may receive a Form 1099-K even when total payments are less than the reporting threshold. No matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return.

Find additional guidance on the phased reporting threshold for third party settlement organizations in Notice 2024-85. There are no changes to what counts as income or how tax is calculated.

Reminder: Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide."

_________________________________________________________________________________________________________________________________________________

As my state (Florida) and many others on that chart in the link you provided state that they follow IRS regulations, you guys may not want to fire the confetti cannons just yet.
 
Quiet said:
I'm guessing the IRS just hasn't had time to update their website as yet:

Understanding your Form 1099-K | Internal Revenue Service

Form 1099-K reports payments from payment apps or online marketplaces and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.
www.irs.gov www.irs.gov

The relevant part:

"Reporting threshold​

Third party settlement organizations (TPSOs) – which means (payment apps and online marketplaces – are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds:

  • $5,000 in 2024
  • $2,500 in 2025
  • $600 in 2026 and after
Although the reporting threshold is phased, you may receive a Form 1099-K even when total payments are less than the reporting threshold. No matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return.

Find additional guidance on the phased reporting threshold for third party settlement organizations in Notice 2024-85. There are no changes to what counts as income or how tax is calculated.

Reminder: Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide."

_________________________________________________________________________________________________________________________________________________

As my state (Florida) and many others on that chart in the link you provided state that they follow IRS regulations, you guys may not want to fire the confetti cannons just yet.
Click to expand...
Those were going to be the thresholds, before the "big beautiful bill" was passed. Now it's back to $20k and 200 transactions for federal (see post #497), but states can do their own thing.
 
jlauffer said:
Those were going to be the thresholds, before the "big beautiful bill" was passed. Now it's back to $20k and 200 transactions for federal (see post #497), but states can do their own thing.
Click to expand...

That's what I've seen articles say, yes. But until I see the actual IRS saying it, I'm not going to take it as gospel. It's odd that the bill was signed nearly a month ago, yet the IRS hasn't updated their site.
 
Quiet said:
That's what I've seen articles say, yes. But until I see the actual IRS saying it, I'm not going to take it as gospel. It's odd that the bill was signed nearly a month ago, yet the IRS hasn't updated their site.
Click to expand...
But, but, I got an email from eBay saying "we did it!!!"...that's gotta count for sumfin, right? Unfortunately doesn't really matter for me since MA is one of the states that already went with the $600 threshold.
 
Its worth noting that any sum of money received for an item in excess of that items purchase price is going to be considered income by the IRS immaterial of the means used to get paid.

Using PPFF will simply reduce or remove the reporting but, notably, not the requirement to add it to your filing and, possibly, pay tax on it.
 
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