What TYPES of transactions are included on a 1099K? Donations from donation button too?

[mrsheatherreese]

I have a paypal business account, but I use it for everything, business and personal, because the 'business' is more of a side-job than anything. I recieved a 1099K for 2013. It is showing way more than I made from my actual business, so I'm trying to figure out exactly what kinds of transactions are included in that total.

*I raised a good chunk in donations for a friend, through a paypal 'donate' button... is that included?

*I have a paypal debit card that I earn 1% back on, so I transfer money from my bank to my paypal to use my card to get cash back. Is the money from my bank counted? Is the cash back I get from paypal counted?

*Is money that is sent to me from friends/family counted (my husband and I transfer money back and forth quite frequently)?

On the same note:

*Are paypal fees already deducted from the total that is shown on the 1099K?

*Are refunds that I've given to clients already reflected?

[becca-62HEPBOO]

1099K reporting requirements for payment settlements.  Settlements such as credit cards transactions or if payment is made to a third party with gross payments of $20,000 or more.

1099K's are due to merchants by Jan. 31, 2014 and to IRS (if e-filed) by April 1, 2014.

If it is a information return see publication 1220.  For more info go to www.irs.gov main page and click on 1099K.

If this still does not help you may need to see your pro tax preparer so they can help you separate what is what.

I hope this helps.

[mrsheatherreese]

Right. I get what the form is for. I'm just struggling to figure out what transactions were actually included in that amount to figure out what I need to deduct and what my actual business expenses were. Because all of the money I made for my business came in the form of paid invoices and transactions made through my online store, but those don't add up to the total on the 1099-K. And I can't find anywhere on Paypal or in the records that show the transactions that were added up to create that total either. Even in the monthly sales reports, it doesn't add up.

[Shoe_is_Here]

Also wondering what counts as a transaction. I just pulled a report on Payments received and I have 199 transactions but like 30 of them are for Fee reversals. I pulled a report via the classic site for payments received and it only shows like the 165 actual payments from goods. So do Reversals and personal money received transcations count towards the 200?

[inTank]

I am pretty sure every transaction is included once you're over the 20K, thank you ACA and Obama voters....  It isn't going to know what money is business or not.  Set up seperate accounts if you want to manage donation pages.

The 1099-K is why I stoped using PayPal for anything non business.

Are paypal fees already deducted from the total that is shown on the 1099K?

Nope.  PP fees are an expnse and are deducted later on on your Schedule C.  Make sure you do this, the software I was using asked for the merchant fees then deducted them from the 1099-K number and put that on the income line.  Well that was a huge red flag for the IRS and we are fixing that with them now.

*Are refunds that I've given to clients already reflected?

Nope.  Those as well are reflected on a seperate line, under the same secion on the Schedule C where this income is shown.  Section I probably line II

You can pull the anual financial summary report to see refunds sent.