Does paypal send out tax forms?

[TheCrafterMC]

Hello, i'm looking to start a business using paypal as my payment gateway but one problem comes up here: if I make over $400 (Since i'm self employing myself as a minor) will paypal send me a 1099 form in the mail or do I download a file then fill it in and email it to paypal? Help is always appreciated. 🙂

[snowshoe · Accepted solution]

There are two criteria you must meet:

* You must have made over $20,000 through a 3rd party processor such as PayPal and
* That $20K must have been made through 200 or more transactions

If you don’t meet either one of those criteria, then you won’t be getting the 1099-K form this year.

The 1099-K form shows your “gross sales”. 

“Gross sales” includes all of your selling transactions.

Refunds and fees are NOT taken out of that number.

Shipping revenue IS included. (If you're tracking your sales, that would make  the number seem a bit higher than you were expecting.)

You only pay taxes on profit (revenue minus expenses), not “gross sales”.  Your expenses may include such things as PayPal / eBay fees, returns, refunds, shipping costs, supplies, etc. All of those expenses that you incurred last year will reduce the taxes you may owe.  (Note: Both fees and returns are important for sellers to track in order to reduce taxes.)

[TheCrafterMC]

So regular tax doesn't apply? If so thats good considering I can keep up with that. I don't think i'll be making any where near 20,000 and 200 transactions at the same time anytime soon.

[snowshoe]

Regular TAX does apply, you must still file a return, sure you can skate and may not be detected but, sooner or later, it will catch up with you.    The 1099 is just a different level.

[TheCrafterMC]

My problem with that is that i'm still considered a minor and my parents don'r trust me with a social security number..

[mtnsmiles]

when are the tax forms mailed out - for those of us who meet the criteria - and why can I not acess it on my site.   I went to the location paypal said they were and I have no pull down for statments. 

[TheCrafterMC]

How am I supposed to file my taxes without my social security number?

[snowshoe]

You will have to figure that out on your own.