PayPal 1099K for goods and services

[Sixpactogo]

I sold close to $2000.00 in used parts in 2023 and sent most of the buyers a PayPal invoice to pay for the items. I was told PayPal would be sending me a 1099 K for those sales if they exceeded $600.00 for the year so I have been waiting for that 1099.
I just looked at my PayPal account and clicked on tax statements. It now looks like the IRS has backed off on the $600.00 for 2023 and no 1099 until over $20,000.00 in Gross sales.
Good news IMO but they only moved the $600.00 gross sales out one year to starting this year. I just wanted to report this finding in case others were waiting for a PayPal 1099K.

 

[69L48Z27]

That’s what the said last year. Next year…

 

[GetX'd]

We found out the same with ebay - My wife sells some fairly expensive pieces on there infrequently. This year amounted to $17k. We thought as you did and when we checked saw it didn’t meet their $20,000 minimum. Sale la vie….

 

[Sixpactogo]

We found out the same with ebay - My wife sells some fairly expensive pieces on there infrequently. This year amounted to $17k. We thought as you did and when we checked saw it didn’t meet their $20,000 minimum. Sale la vie….

Good for you! Hopefully they won't get if figured out for years to come. I wasn't too worried about being taxed for the stuff I sold but was dreading the extra paperwork.

 

[Fran Blacker]

I think this year 2024 you won't pay taxes until $5 or $6k 2025 is I believe it's $600.

 

[SgtSuperbird]

I hate to be "that guy", but regardless of receiving a 1099 or not, any profits received through side hustles are taxable as income, no matter the amount. Getting caught by the IRS is another matter, being under the threshold for issuance of a 1099. Highly unlikely, but always possible. Additionally, I don't think I'd "advertise" the fact that a person is not reporting income, such as what's in this thread.

I'm not trying to be an ***, but there's a lot of confusion and bad information out there.

 

[cr8crshr]

The funny thing about this is this...Why do I have to pay taxes on something I have bought and paid sales tax on? Most times when I am selling something on Ebag, it is at a loss because I am getting rid of it at a reduced price!!! Double taxation and Gov't over-reach...cr8crshr/Bill

 

[Don selleck]

what ever money is deposited into your bank account can be under scrutiny, My buisiness is all 1099's I don't get them from everyone, and they are way over 600 and up exceeding 50k. I add up all deposits that go into my account, deduct as much as allowed, and pay taxes on the remainder (income).

 

[GetX'd]

I hate to be "that guy", but regardless of receiving a 1099 or not, any profits received through side hustles are taxable as income, no matter the amount. Getting caught by the IRS is another matter, being under the threshold for issuance of a 1099. Highly unlikely, but always possible. Additionally, I don't think I'd "advertise" the fact that a person is not reporting income, such as what's in this thread.

I'm not trying to be an ***, but there's a lot of confusion and bad information out there.

My wife sold a couple of expensive items on eBay -total $17k. No 1099. Do we add our sale of goods and subtract initial cost of goods and eBay fees, then declare the balance as income? She only made a few grand off the total sales. Maximum bank deposit around $7,500 on the most expensive sale - not asking to be devious - but w/absence of a 1099 and a deposit under $10k how would the gestapo ever know? I’m just curious not dishonest - I pay my frieght every year ….

 

[threewood]

Checks or cash.
How is taxing me twice for the same thing legal?

 

[Cranky]

I've had the IRS screw up on stock transactions to the point it cost me 1500 for a tax lawyer a lot of years ago....and the IRS still charged me for late payment etc....fork the IRS!!!

 

[Sixpactogo]

Checks or cash.
How is taxing me twice for the same thing legal?

That has been my question in all of the excess or used parts I sell. I realize it has been going on for many years with items that carry a License plate or title.
A vehicle can be sold a hundred times and sales tax is collected every time the title gets transferred. I get it that the new owner gets stuck with the tax but how the hell is is legit for the seller to be taxed for selling something he already paid the tax on? Maybe that is why the IRS has not implemented it yet. I am not a merchant and never have been but as far as I know, they don't pay taxes on the goods they sell until the goods are actually sold. Then they collect sales tax from the buyer which in turn goes to the IRS.

 

[XS22J8R]

I don’t know why but 3 years ago PayPal sent me a 1099K for around 2 grand in transactions in 2020.
I guess it was an Illinois thing that they required the reporting before it was nationwide.
I was really confused about what to do with it and even consulted with Turbo Tax as to what to do. Some was old car parts I’d sold which of course I didn’t have reciepts for when I’d purchased years or decades earlier. The rest was odds and ends. Even some errors where someone reimbursed me and was supposed to use friends and family but screwed up.
Well I claimed some of the 2K was profit and paid a few hundred in taxes just to hopefully keep the IRS off my back.
And since then I’ve not sold anything except for cash or PayPal friends and family. I have lived in the same house for over 30 years and have a lot of clutter I’ve accumulated that I’d love to turn into a few bucks, like I’ve done off and on for years, but now it’s more trouble than it’s worth to do. So maybe a swap meet table someday, or maybe stuff that someone would love to have just ends up scrapped eventually.
Count on the government to eff up a wet dream.

 

[SgtSuperbird]

My wife sold a couple of expensive items on eBay -total $17k. No 1099. Do we add our sale of goods and subtract initial cost of goods and eBay fees, then declare the balance as income? She only made a few grand off the total sales. Maximum bank deposit around $7,500 on the most expensive sale - not asking to be devious - but w/absence of a 1099 and a deposit under $10k how would the gestapo ever know? I’m just curious not dishonest - I pay my frieght every year ….

Yes, it would be sales price, minus fees/postage/shipping, minus the original cost of the item. IRS wants to see proof of original cost, and who keeps receipts from 100 years ago, or even receives one from something bought at a swap meet? All we're doing is trying to make a few extra bucks...

A mention was made about taxing something that's already been taxed. I totally agree that it's wrong, but it's everywhere. We get taxed on used cars, used houses (transfer tax), resale shop items, etc.