I am still confused, I have to sell more that $20,000 or 200 transactions. Are these transactions both when you are selling and buying or just selling?
I start to believe they do not want to issue such info to avoid sellers to stop selling and not passing the mark. Well they can see they lost my business in the past 2 months. Is there anyway a valued customer with an ADVANATGE status can find this out? I asked the question for 3 or 4 times and never got an answer. Especialy in my case I get payments in 3 different currencies and is hard to calculate the $$$ ammount with daily currency value all they need is a stupid report created. And they sure have one or how they can report to the IRS if you are or not over the value?
Yeah, when you think about it, PayPal isn't the one that wanted to implement this, it's our government that required PayPal and other like services to report this information to the IRS. It takes time, and money, to write programs and guess we should be glad we got anything from Paypal to work with. And if they spend a lot of time/money writing a bunch of programs for all of this the fees will go up!
It's going on your tax return as additional income so there's no way to know how much tax you'll owe. Why is it paypal's problem?
There is an easy way to determine whether or not you have exceeded the threshold for IRS reporting...if you know how to use an excell spreadsheet. Download your "completed transactions" history from 1/1/11 to 12/31/11 in a comma delineated (CSV) format. If you have excell on your computer, it will automatically open in excell. If you both send and receive payments using PayPal, what you have to do is remove payments that you "sent". These will show as a negative value. With these removed, you can see how many payments you received. Now sum the "amount Paid" column and that will give you your total for the year. You can also set the filter so that it only downloads payments that you recieved.
If BOTH the number of payments received exceeds 200 AND the total amount RECEIVED exceeds $20,000, you will recieve a 1099 notice from paypal showing how much was reported to the IRS under your tax ID number. Payments that you SEND do not count. Payments received from family and friends as "personal" payments also do not count toward the the threshold reporting requirements.
If paypal made a special report for these numbers widely available, members who got close to the threshold might stop using paypal until the threshold reset or might open a new paypal account with a different tax ID (spouse, business, child, etc) that would not meet the threshold. This might force the IRS to make even stricter policies such as automatic reporting for everyone.
You should really report all income from sales on your tax return. If you subtract the cost of goods, fees, advertsing, and shipping, you would only pay tax on the "net profit" received. For most, this would be reported on a Schedule C.
Hope this helps.
Because you are FORCED to use paypal nothiing other to use with eBay period, my store my rules my terms for payment. LOL next time I go into kmarts or Walmarts I am going to tell them they can NOT sell that items for that price an they can not except cash anymore , wonder how they will react hmmmm
I found under history an link to 2011 financial report. Only available since the 15th of Jan. But, the figures are confusing. Where are the monthly EBay fees? The totals PayPal provided do not match mine at all!. And, when I call, I am put on hold and no one ever answers the phone. The purchase history is there but only a total. It is way off my records. PayPal needs to put on more people to answer the phone.
Sarah LOL is a joke when it comes to getting anything but stock answers.
After you log-in to Paypal, under "History" click on "Reports". Then click on "2011Financial Summary".
It is a PDF file. You will need Adobe Acrobat Reader to view it.
When you enter all the monthly numbers on your 1099 in the correct spots, the total will automatically go in to the total. The total IS of course the larger number on the 1099. All of the info will go to Schedle C which is the Business form of your 1040. windmill22