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PayPal USA Community Chat 12/20 - Closed

Moderator

PayPal USA Community Chat 12/20 - Closed

Hey everybody!

 

Join the PayPal Community Forums moderation team in our weekly USA Community Chat on Wednesday, December 20th, from 1-2pm PT (4-5pm ET).

 

Our moderator staff will be here to answer your questions regarding PayPal. This thread will remain locked until the chat is open, so if you have a question you'd like to see answered by the community before then, please feel free to post a topic by clicking on "Post a Topic" and selecting the appropriate board.  As always, PayPal customer service can be reached by clicking on "Contact Us" and selecting help via phone or email.

 

Please feel free to RSVP to the chat by clicking "Me too" at the bottom of this post.  See you then!

 

-Ashley


If you see a helpful post, please accept it as a solution or give the author kudos. Smiley Happy Thanks!
28 REPLIES
Moderator

Re: PayPal USA Community Chat 12/20

Hi everybody!

 

This week's USA Community Chat is now open and unlocked! 

 

Our moderator staff will be available for the next hour to answer your questions about PayPal. We do ask that posts follow the PayPal Community Help Forum Policy and the Forum Guidelines.

 

Once the session is over, this thread will be locked again, but you will be able to view the content in the forums.  This chat is a regular feature every Wednesday from 1pm to 2pm PT, so if you missed us this week, please feel free to stop by in the future! 

 

-Ashley


If you see a helpful post, please accept it as a solution or give the author kudos. Smiley Happy Thanks!
Contributor

Re: PayPal USA Community Chat 12/20

I have a personal account vs. business account question.

 

With the personal accoutn for IRS Thresholds its 200 trans / 20k in gross sales.

 

Is it the same for the Paypal Business account OR would that be automatically sent to the IRS Cuz its a business account?

Moderator

Re: PayPal USA Community Chat 12/20


bigmart42 wrote:

I have a personal account vs. business account question.

 

With the personal accoutn for IRS Thresholds its 200 trans / 20k in gross sales.

 

Is it the same for the Paypal Business account OR would that be automatically sent to the IRS Cuz its a business account?


Hi @bigmart42!

 

Thanks for joining our Chat! Great question about 1099-Ks! 

 

With either account type, the threshold for a 1099-K to be issued is receiving over $20,000 in gross payment volume AND over 200 separate payments. 

 

More details about tax info reporting here. Smiley Happy

 

-Ashley


If you see a helpful post, please accept it as a solution or give the author kudos. Smiley Happy Thanks!
Contributor

Re: PayPal USA Community Chat 12/20

thank you for responding

 

for example just so i understand...

 

if Account A has 25000k in overall payments BUT the account breaks down as the following:

 

19500k gross payments for Goods and services 

 

5500k in payments from Friends and Family 

 

would it be safe to say that the accoutn would NOT receive a 1099K based on the amount for Goods and services gross sales?

Moderator

Re: PayPal USA Community Chat 12/20


bigmart42 wrote:

thank you for responding

 

for example just so i understand...

 

if Account A has 25000k in overall payments BUT the account breaks down as the following:

 

19500k gross payments for Goods and services 

 

5500k in payments from Friends and Family 

 

would it be safe to say that the accoutn would NOT receive a 1099K based on the amount for Goods and services gross sales?


Thanks for following up, @bigmart42. Smiley Happy I'm happy to help out! Smiley Happy

 

You are correct. If those were the numbers for Account A, then a 1099-K would not be issued. 

 

Just as a heads up, if there are multiple PayPal accounts attached to the same identity and the threshold is reached or passed between the accounts collectively, then a 1099-K would be issued in that scenario as well. Just something to keep in mind if you or anyone happens to have more than one PayPal account. 

 

-Ashley


If you see a helpful post, please accept it as a solution or give the author kudos. Smiley Happy Thanks!
Contributor

Re: PayPal USA Community Chat 12/20

thank you for responding

 

last question i promise...

 

My account is new withint the last month and i will not hit the thresholds but i am trying to undersetand what is all going on with the IRS Thresholds.

 

I have a feeling next year i will hit the threshold and i want to be prepared.

 

I have read that on various threads on the internet that at some point Paypal will ask for your SSN or ITIN or EIN.  Once they ask and verify it and then IF you  move the information is no longer good or valid. will they reach back out to you once you hit the IRS Threshold just to make sure your infomration is correct?  I have also read that you can get your 1099 online, how would one know if it is going to be mailed or available online?

 

I have also read that IF you are close too 20k such as 19800 you may get a 1099k, However based on the Paypal Website and what you are telling  me a 1099 SHOULDNT be issued.

 

Im sorry this whole deal is confusing to me. 

Moderator

Re: PayPal USA Community Chat 12/20


bigmart42 wrote:

thank you for responding

 

last question i promise...

 

My account is new withint the last month and i will not hit the thresholds but i am trying to undersetand what is all going on with the IRS Thresholds.

 

I have a feeling next year i will hit the threshold and i want to be prepared.

 

I have read that on various threads on the internet that at some point Paypal will ask for your SSN or ITIN or EIN.  Once they ask and verify it and then IF you  move the information is no longer good or valid. will they reach back out to you once you hit the IRS Threshold just to make sure your infomration is correct?  I have also read that you can get your 1099 online, how would one know if it is going to be mailed or available online?

 

I have also read that IF you are close too 20k such as 19800 you may get a 1099k, However based on the Paypal Website and what you are telling  me a 1099 SHOULDNT be issued.

 

Im sorry this whole deal is confusing to me. 


Don't be sorry. Smiley Happy It's what we're here for, @bigmart42. Smiley Happy

 

If a customer is approaching the $20K and 200 transaction threshold, we would ask them to provide SSN, EIN or iTIN so we can ensure that the information is reported accurately. If a customer does NOT cross the threshold, a 1099-K will not be issued. 

 

If a customer moves or changes addresses, it's highly likely that we would reach out to the customer to verify their information. When we issue a 1099-K, we have to confirm that the address of the account holder or business is correct. 

 

If a 1099-K is issued, we will make it available to our customer online, within the PayPal account. The forms are not sent by mail.

 

I hope that all makes sense and I hope it helps! Please let me know if I can be of further assistance!

 

-Ashley


If you see a helpful post, please accept it as a solution or give the author kudos. Smiley Happy Thanks!
Contributor

Re: PayPal USA Community Chat 12/20

thank you again.

 

I plan on moving next year, so my question is more of a future question.

 

say i provide my SSN in July of next year and its verified by you at Paypal or however you do it with the IRS.

 

At that time i am not over 20k or 200 trans, then say in december i would go OVER both amounts , how do i know that the information on the 1099 would be accurate because i would have since moved?

 

the main question is i want the information on 1099 to be accurate BUT it wouldnt be becuase i would have moved.

 

even though the information was verified earlier in the year?

 

Moderator

Re: PayPal USA Community Chat 12/20


bigmart42 wrote:

thank you again.

 

I plan on moving next year, so my question is more of a future question.

 

say i provide my SSN in July of next year and its verified by you at Paypal or however you do it with the IRS.

 

At that time i am not over 20k or 200 trans, then say in december i would go OVER both amounts , how do i know that the information on the 1099 would be accurate because i would have since moved?

 

the main question is i want the information on 1099 to be accurate BUT it wouldnt be becuase i would have moved.

 

even though the information was verified earlier in the year?

 


Ah, moving. Smiley Happy One of my least favorite things to do. Smiley Happy Happy to answer this for you as well, @bigmart42.

 

After further review, it looks like I gave you the wrong information. I sincerely apologize! We will verify the information up front, but if the customer moves or changes addresses after verification - it is up to the customer to make sure that their address is up-to-date on the PayPal account. 

 

We do not issue the 1099-Ks until January, so if you moved in December and made sure to change your address before the end of the year, you'd be good to go. 

 

I'm really sorry about my confusion!!

 

-Ashley

 


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