One 1099-K 2 Ebay accounts, 1 Paypal account, 2 Sellers

[lauraplaca]

I have a non-business paypal account that gets payments from my ebay account, and my son's ebay account, but I was the only person who received a 1099K for the total amount. Our gross income combined is over 20,000 but seperate is less than 20,000. How can I split our costs in order to not have a 1099K?

[DPCreations]

It is your personal account so it is all your money that is reported.

I assume the eBay account is also your own account.

If you want separate accounting you need separate accounts.

Just remember that the 1099k report is also submitted to the IRS and they will reconcile that with what you report on your 1040c. Make sure your total business revenue on your 1040-c is higher than your 1099k form.

[Whac-A-Mole]

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@DPCreations wrote:

It is your personal account so it is all your money that is reported.

I assume the eBay account is also your own account.

If you want separate accounting you need separate accounts.

Just remember that the 1099k report is also submitted to the IRS and they will reconcile that with what you report on your 1040c. Make sure your total business revenue on your 1040-c is higher than your 1099k form.

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no,since she is collecting payments for herself and her son,her true revenue is less than 1099k from Paypal(her son should report his on his own return) 

[DPCreations]

I know, but try explaining that to the IRS when the 1099-k is in the name of the parent.

The account was set up incorrectly and now the account owner will need to figure out how to fix it with the IRS.  PayPal can't split the 1099-k total.

[Whac-A-Mole]

she can explain to IRS that part of the payments come from his son,then IRS will want to know if his son has reported his income?

I would just report what is on 1099K,since some of the cost would be the same whether there are 2 or 1 1099k- sales,cost of good sold,shipping,supplies,pickup expensesof hers and his,home office deduction etc,the income before tax would not be that much,may be she has to report self employed income tax and SS tax.

.

[Whac-A-Mole]

it is too late now for you to correct 1099k for 2016.

You need to divvy up your son and yours and report separate.

It is ok to report less than 1099k,as long as you can explain it.

as for 2017,you need to stop accepting payments for your son,unless he is consigning his items for you to sell for him,

ask you son to open his own paypal account,remember it is one 1099k per paypal account,not per person or per ebay account.

is you son under 18,then he cant have a paypal account, 

[lauraplaca]

I am also on Disability. I  called paypal and they said that if I put the account in my sons name and change it to a business account paypal will make a new 1099k for him and I could help pay the taxes to him. The problem with that is we both made less than 20,000 and he is disabled as well. I will seperate our accounts but I think it is unfair. As paypal offers its paypal users the ability to add several emails to one account and my sons money comes in under his name not mine but in my account. No matter what I am afraid we will lose disability

[Whac-A-Mole]

we are allowed 8 email addresses per PAYPAL account,so your son will have his email address,but the tow of you still share one PAYPAL account and the fund is comingled,there is no separate balance per email address.

there is no $$ saving whether you two share one Paypal account or each have his/her own separate Paypal account,

as for disability,what kind of disability,if it were SSI ,the state monitor your bank account ,if they find deposits which look like you have been working,then they will question you.

thats why some sellers do not haev their paypal proceeds go to their bank account. 

[Whac-A-Mole]

also we may be able t o have 8 email addresses for each paypal account,but those 8 email addresses have to be the same person,who is you the primary account holder.

so your son cannot be using one of your email address,he has to get his own,which is better,as both you and son will be under 20k and 200 transactions.

but if the SS disability is the one managed by the state,they monitor your bank account,not wait till the 1099k,I am not sure they get a copy of 1099,it goes to IRS.  

[lauraplaca]

We both are on social security disability not SSI