paypal 1099k

[jweage1]

I received a 1099K from paypal for $1371 and 4 transactions?

Anyone have any idea why?

and 3 of those transactions were me charging my own Credit Card!!

[Whac-A-Mole]

1099k is for tax reporting,if you have 200 or more transactions AND $20,000 or more sales,Paypal will send one copy to you and one copy to IRS. 

[lilbellas22]

so if i dont have over 200 transactions oe more than 20k, b ut still received a 1099k, i dont have to report?

[lilbellas22]

following!! im in the same exasxcgt boat!!!!! what do we do!! mine are from coupomn sites and funds that familhy has sent me!!

[Whac-A-Mole]

Youneed to call Paypal and ask why?

In the past ,it is 200 transactions and 20k,a copy goes to IRS.

ASK WHY ARE THY SENDING YOU 1099K? 

[DPCreations]

1099k's will be availble 27 January through the PayPal tax portal to those eligible.

It was just posted on the PayPal web site as an announcement.

[Whac-A-Mole]

It is available now,I downloaded my copy a few days ago.

But their questions is why are they getting a 1099k,when they have not reached the 200 transactions and 20k threshold? 

[DPCreations]

My guess is that there is no regulation that forbids companies from providing a 1099-k at any level; the regualtion only requires above a certain amount, but permits a lower threshholds.

[Whac-A-Mole]

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@DPCreations wrote:

My guess is that there is no regulation that forbids companies from providing a 1099-k at any level; the regualtion only requires above a certain amount, but permits a lower threshholds.

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IRS has rule for issuing 1099.

Paypal has many software glitches,this could be one of them.

The concern they have is that one copy goes to IRS and would be matched against their tax return .

If there is income earned (sales -cost of goods sold),then report as other income on 1040,do not use a schedule .  

[jweage1]

I did call paypal and they said it was a mistake and are looking into it. It was $1400 and 4 transactions.The 1099 should of not been produced in the first place. $110 of the charges are legit sales. The other $1300 was me charging my own credit card to get the bonus miles, how do you claim that as a business expense?. It's fine if they done send it to the IRS, but if they do it can trigger an audit. Entering this on taxes will cause a loss of $400 refund.