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Pay Pal and the IRS


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Got an email from Pay Pal today, announcing that they will be reporting any money received into my Pay Pal account as income to the IRS.

 

Are they actually going to send out a 1099 on $45 ?

 

Anyone have any experience with this?

 

Please don't make this a general dump on Pay Pal; please lets stay on the tax reporting  issue.

 

LL

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If you earn $600 or more as a self-employed or independent subcontractor for a business from any one source, the payer of that income must issue you a Form 1099-MISC detailing exactly what you were paid.

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7 minutes ago, Cold Lake Kid, SASS # 51474 said:

Time to revert to Certified Cheque, Bank Cheque or Money Order.

And you think your Bank doesn't report your transactions?

 

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Walmart money orders cost about  88 cents no matter how much the money order is for.  Just FYI.

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50 minutes ago, Father Kit Cool Gun Garth said:

If you earn $600 or more as a self-employed or independent subcontractor for a business from any one source, the payer of that income must issue you a Form 1099-MISC detailing exactly what you were paid.


Only if the recipient is not incorporated.
When I hire a corporation to do a project for me, I do not issue a 1099.

If this was the case, then every bill you pay for trash, utilities, etc, would require a 1099.. which it does not.

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I won't go near PayPal; several years ago I got up one Saturday morning and found an email from PayPal, announcing that my transaction was completed.

 

Huh?  What transaction?

 

So I checked my bank account - this was the day after payday - and discovered that the account balance had been totally wiped out the night before via PayPal.

 

I did get the money back, but it took several days, two trips to the bank, and dozens of calls to PayPal.

 

Nope.  No more PayPal for this boy.  no talking

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1 hour ago, Ace_of_Hearts said:

And you think your Bank doesn't report your transactions?

 

Not here, unless it's a single deposit of over $10,000.00

I didn't know that your banks reported your transactions: Under $10,000??

Interesting.

I have used Certified Cheques, Bank Cheques and Postal Money Orders in all my transactions and never had any reporting of that kind.

They were in amounts ranging as high as $5,000. and change.

I stay away from PayPal after another Pard, here in Canada, had some very unsatisfactory dealings with them, as a seller.

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26 minutes ago, Cold Lake Kid, SASS # 51474 said:

Not here, unless it's a single deposit of over $10,000.00

I didn't know that your banks reported your transactions: Under $10,000??

Interesting.

I have used Certified Cheques, Bank Cheques and Postal Money Orders in all my transactions and never had any reporting of that kind.

They were in amounts ranging as high as $5,000. and change.

I stay away from PayPal after another Pard, here in Canada, had some very unsatisfactory dealings with them, as a seller.

There are reports sent to the government all the time in various fields.  Many of which the reporter is not supposed to inform the patron.  

 

Look up Suspicious Activity Reports.  The bank used to send reports on me often for transactions over or around $5,000.

 

If PayPal sent that notice, I missed it.  That would explain the SSN field on their website.  Is yours a business or a personal account?

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STOP! using PayPal.  
 

I haven’t used PayPal in many years.  Some people you transact with Online demand you use PayPal.  I tell them I won’t.  If they insist, then “no deal”.  Save yourself unnecessary problems, administration and “future regret”.  We didn’t need PayPal to begin with and we don’t need them now.
 

Cat Brules
 

 

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Sassnetguy50:

Personal accounts.

The monies received were for the sale of items I owned; boats, motors, coins, stamps, medals, Orders, firearms etc.

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3 hours ago, Father Kit Cool Gun Garth said:

If you earn $600 or more as a self-employed or independent subcontractor for a business from any one source, the payer of that income must issue you a Form 1099-MISC detailing exactly what you were paid.

This ^^^^^^^^^. is true!

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Howdy,

If I pay for something with my money which has income tax deducted and sales tax

charged.  I use the item for a while and sell it however.....

How in the world can that money be taxed as income?

If anything say I buy binoculars for 400 and sell em for200.

I LOST 200 on the deal.  So if anything I should get a 200 dollar

deduct, not pay more tax.

Paying tax and tax and tax again is no way fair.

Best

CR

 

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On 6/9/2020 at 12:02 PM, Hardpan Curmudgeon SASS #8967 said:

I won't go near PayPal; several years ago I got up one Saturday morning and found an email from PayPal, announcing that my transaction was completed.

 

Huh?  What transaction?

 

So I checked my bank account - this was the day after payday - and discovered that the account balance had been totally wiped out the night before via PayPal.

 

I did get the money back, but it took several days, two trips to the bank, and dozens of calls to PayPal.

 

Nope.  No more PayPal for this boy.  no talking

 

Yeah I got hacked one day too and paypal would not help me figure out how they got into my account so I'm done with them.  To their credit, they did recognize the fraudulent charge and stop it before I knew what was going on.  The hacker sent them a message asking why the transaction was blocked and that was the notification I finally saw.  They said the account it was sent to had been flagged I think.  But yeah, the hacker had to know some personal info about me to have changed my password and I was ticked that they wouldn't tell me what they had used.  Had to have spoofed my cell number IIRC, which is what had me the most worried. 

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On 6/9/2020 at 11:00 AM, Father Kit Cool Gun Garth said:

If you earn $600 or more as a self-employed or independent subcontractor for a business from any one source, the payer of that income must issue you a Form 1099-MISC detailing exactly what you were paid.

 "Must"....:lol:

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First, the link you posted contains a lot of your personal information. I suggest you remove the link.

 

Second, read here:

 

https://www.paypal.com/us/smarthelp/article/why-do-i-need-to-confirm-my-u.s.-tax-payer-status-faq3894

 

Third, log in to PayPal directly (don't use a link sent by email! Ever!) and provide the info they need to not limit your transactions or do withholdings on the part of the government.

 

Paypal is a payment service, not a bank. A payment processor (think about your credit cards) needs to know who you are, they do not ask for your SSN just to run a credit report. And unlike your credit card, Paypal lets you receive payments (not just credits for returns).

 

Paypal probably just needs your SSN on file. But since that is very sensitive information, type in the URL and log in yourself instead of using the email link. Just like when you get a phone call informing you of a possible fraudulent credit card charge. Don't call back that number, get out you credit card and call the number printed on the back of it.

 

If paypal does not have the needed info, they may limit access or withhold taxes. That is a pain to reconcile. But with the info, getting payment for your private non-commercial sales is not an issue.

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Again, it is best to not use PayPal, period!  
 

CB

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8 hours ago, John Kloehr said:

First, the link you posted contains a lot of your personal information. I suggest you remove the link.

 

Second, read here:

 

https://www.paypal.com/us/smarthelp/article/why-do-i-need-to-confirm-my-u.s.-tax-payer-status-faq3894

 

Third, log in to PayPal directly (don't use a link sent by email! Ever!) and provide the info they need to not limit your transactions or do withholdings on the part of the government.

 

Paypal is a payment service, not a bank. A payment processor (think about your credit cards) needs to know who you are, they do not ask for your SSN just to run a credit report. And unlike your credit card, Paypal lets you receive payments (not just credits for returns).

 

Paypal probably just needs your SSN on file. But since that is very sensitive information, type in the URL and log in yourself instead of using the email link. Just like when you get a phone call informing you of a possible fraudulent credit card charge. Don't call back that number, get out you credit card and call the number printed on the back of it.

 

If paypal does not have the needed info, they may limit access or withhold taxes. That is a pain to reconcile. But with the info, getting payment for your private non-commercial sales is not an issue.

 

JK:

 

Many, many thanks.  I had no idea that the generic looking link that was included in my post could be used to reach my personal info - I tried it, and had my eyes opened.

 

LL

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