I received a personal transaction of $672.19 in August, and received a 1099k for it today. It was not a business transaction. Furthermore, paypal included the fees they took from the transaction in the 1099k. Paypal's CS told me to get an accountant (which will cost more than the tax) or to look on the internet (the internet suggests suing the entity that that sent the 1099k in error-which I'd rather not do). How do I get paypal to acknowledge their mistake so that I don't owe business taxes on a non-business transaction.
Two states, MA and VT, started requiring income over $600 (no matter how many or how few transactions) to be reported by paypal and others in 2017. I've seen others report that their state tax dept and paypal have both told them it's only reported to the state and not the IRS, but have not confirmed that. (And the form says otherwise.)
On what date did MA pass this law and what legislators pushed this law through? All I can locate is that it was passed sometime between late November and mid December.
My issue is that I was 1099 MISC'd by the client directly, not just 1099 K'd by PayPal for the same money. I removed the option to remit via PayPal, and will hence forth return all moneys submitted as business payments. So now I need to hire an accountant or a tax expert to avoid double taxation. Nice going PayPal. You've lost a business customer (and way to go, Mass. Going to move my business office 10 miles to NH.)
Gather all receipts, and write offs. Postage, Milage, Inventory, utilities, phone, internet, office space for business. If the states think they are going to gain revenue from what they have done to us; let's make them pay! ,And have it backfire on them. Basically they are saying we are a business now.
My middle finger just went out to VT They thought they were going to make tons of $. With this new change? Well, they just turned everyone who sells over $600 in to a business, and I just got the results from my accountant. $11,000 loss with all deductions. Nice return. Take that!
I was sent a 1099 K from PP for business activity in 2020. I don't have a business or conduct any business through PP. The closest thing that I could come up with is the amounts on my 1099 K match my withdrawals from Draft Kings, an app that allows you to bet sports bets online legally. Can someone give me a contact name at PP to address this BIG mistake the PP tax geniuses made?
What state do you live in? VT and MA went to $600 threshold in 2017 slipping it in at very end of the year and made it retroactive for that entire year. I am sure other states are starting to catch on and require PayPal to send 1099 k for anything over 600. The good news is that they are treating you as a business and you can now start gathering write-offs for a business loss. if you do your homework like I did you will actually make money on them.
