Email asked for Tax ID, Gifted Payments and Possible 1099k???

Rjking56
Contributor
Contributor
Hello, I recently received a email asking for my Tax ID (already thought it was on file) it was then brought to my attention that I could possibly have too fill out a 1099k. My concern is a very large majority of the money I receive are gifts and not for services and goods. I also spend a great deal of money but do not see any of that reflected on my activity and gross income. I just want to make sure I am not taxed and don’t receive a 1099-k particularly because this is money I am laying out for friends and only being paid back via PayPal.
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PayPal_JonK
Moderator
Moderator

Hello @Rjking56

 

Welcome to the PayPal Community! I can certainly understand your concern with the request you received. PayPal will track the total payment volume of your account to check whether your payment volume exceeds both of these levels in a calendar year:

  • $20,000 USD in gross payment volume from sales of goods or services in a single calendar year
  • 200 payments for goods or services in the same year

Personal payments do not currently count towards the above thresholds for IRS reporting. 

 

I hope that helps!

 

 - Jon K


If you find this or any other post was helpful, make our community better by giving kudos or accepting it as a solution.

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Jessiepelayo21
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Contributor
Thanks for the gifts
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PayPal_JonK
Moderator
Moderator

Hello @Rjking56

 

Welcome to the PayPal Community! I can certainly understand your concern with the request you received. PayPal will track the total payment volume of your account to check whether your payment volume exceeds both of these levels in a calendar year:

  • $20,000 USD in gross payment volume from sales of goods or services in a single calendar year
  • 200 payments for goods or services in the same year

Personal payments do not currently count towards the above thresholds for IRS reporting. 

 

I hope that helps!

 

 - Jon K


If you find this or any other post was helpful, make our community better by giving kudos or accepting it as a solution.
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