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Thread: IRS 1099K Required in 2022 for receipts over $600 from Paypal, or Venmo or others.

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    IRS 1099K Required in 2022 for receipts over $600 from Paypal, or Venmo or others.

    Have any of you guys considered the consequences of the new IRS requirement that payment processors like Paypal, Venmo, eBay, etc must send a 1099K for payments totaling over $600 in 2022? This is up from $20,000 in prior years. One example - Sell 3 Iphone 11s to Trademore and get over $600 via Paypal and get a 1099K to report the sales on 2022 income taxes!! Of course you can write off the cost of goods against the sales, but that requires a lot of record keeping and for phones received via Rewards coupons, I don't know what the cost of the phone is to me.

    What a mess. I bet come January when probably millions of little sellers on eBay, etc get 1099Ks in the mail and have to file forms they have never heard of for 2022 there will lots of gnashing of teeth. I'm not gonna go over $600 with any one payment processor just to avoid this crap. Maybe sell on Craigslist, Offferup, etc and avoid this.

    Here is just one link explaining the new requirement.

    https://money.com/tax-1099-k-600-ebay-etsy/

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    I am not certain how this pertains to the theme of this forum, so it has been relocated to the Lounge instead.
    Just another day in paradise.....

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    The news did a great job with the clickbait headlines for this one.

    This only applies to business accounts and business transactions. Note that you have the option to send a payment on PayPal as "friends & family" which has no transaction fee, or if you want PayPal buyer protection you can send it as a business transaction for a small fee. This does not apply to personal accounts or transactions.

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    Quote Originally Posted by VisionsDivine View Post
    This only applies to business accounts and business transactions. This does not apply to personal accounts or transactions.
    It does apply to personal accounts (but not personal transactions). The OP mentioned selling phones to Trademore, which I did several times. When Trademore pays by Paypal, the money is listed as "Payment Received", which you will have to report as Taxable Income. When money is received from friend/family, the money is listed as "Money Received", which is not taxable.

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    Quote Originally Posted by VisionsDivine View Post
    The news did a great job with the clickbait headlines for this one.

    This only applies to business accounts and business transactions. Note that you have the option to send a payment on PayPal as "friends & family" which has no transaction fee, or if you want PayPal buyer protection you can send it as a business transaction for a small fee. This does not apply to personal accounts or transactions.
    You might want to investgate this a bit more. Here is what Paypal says,
    https://www.paypal.com/us/smarthelp/...1099-k-faq729/

    Ebay has lots of info on it including a form to contact Congress. Sell $600 or more of anything ( old clorhes for instance ) as a personal seller and you have to provide a SSN or TIN so they can send you and the IRS a 1099K showing the sales as income.

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