On the 1099 form, where on there can I put how much money I received as a gift?

[sk8brdkd]

I had gotten in trouble w/ this the last time but, I didn't see anywhere on the form where to put gifts/reimbursements that are in NO way profit.

My transactions did exceed both $20,000 and 200 transactions but, a lot of the money I received was in the form of gifts and reimbursments from family and friends. How or where on the 1099 do I repoart this? I didn't see anything and I can't find anything online that'll help me answer that question.

I just don't want to get in trouble again w/ that next year.

[sharpiemarker]

You can't report those on the 1099.  The 1099 is a report PayPal sends to the IRS and you of the amount reported and you have to account for.  You have to report or explain it away somehow on the appropriate income tax form.  PayPal should not be including personal payments on the 1099 unless the sender made the payments as goods and services payment which they will include on the 1099.  Therefore you need to train your senders on how to properly send friends and family payments, and do not use money requests as those are generally considered goods and services payment as well.  PayPal documentation indicates you can make personal payments via money request but reports have been that PayPal fees were charged meaning they were goods and services payments or the sender made an error and not ticking the friends and family option, so who knows.

[Whac-A-Mole]

Paypal sent you and IRS   copy of  YOUR 1099 .

You use it to report your income.

If you are report small business,then use the small business tax form.

first line is gross ,then second line is < refund,sales tax you collected,returns >,third line would be line 1 minus line 2.the gross on 1099 is for goods and services,so if your friends did the right thing,they should be sending you under friend and family,those $$ are not included in your 1099.

On the 1099 form,you will notice total for the whole year and then month by month/

But it is all gross,if your buyers have return items and you have refunded,or sales tax you have collected for the state and remit to them,these should be excluded,thats what the second lineis for.

take that form and the information sheet and follow the roadmap/

It is a pain as the second page has to do with inventory.

[Whac-A-Mole]

if you dont want to use small business form,then do this outside tax forms,figure what is your gross ,minus returns,sales tax,minus costof good sold and paypal and ebay fees and shipping etc,then report it as misc income on 1040.