1099K? I don't even have a business.

joejccva71
Contributor
Contributor

I paid in advance for a trip to Florida for me and my friend.  Her share was $1500.  I paid it for her and she paid me back through paypal.  

 

Why am I receiving a 1099K?  This is a personal account and don't even own a business.  She was just paying me the money back.

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6 REPLIES 6

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@joejccva71

 

The payment was might have been sent as a goods and services payment instead of personal payment. And in some States (VT and MA), the threshold to receive the 1099K is $600. It doesn't matter if you have a personal or business PayPal account.


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joejccva71
Contributor
Contributor

Can they fix this?  The person that sent the money to me can verify that it wasn't for goods and services, it was just paying me back for a trip that i paid for in advance.

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@joejccva71

 

But then again, you'd have to meet both thresholds: 200 transactions and over the $600. 

 

Contact PayPal customer service to check if there was an error:

Click HELP at the top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.

 

Or private message via social media:

Facebook: https://www.facebook.com/paypal

Twitter: @AskPayPal 


Kudos & Solved are greatly appreciated. 🙂
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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@joejccva71 wrote:

Can they fix this?  The person that sent the money to me can verify that it wasn't for goods and services, it was just paying me back for a trip that i paid for in advance.


I don't know if they can so it is best to call PayPal customer service. If you were charged a PayPal fee to receive the funds (click on the transaction for details), then your friend indicated that the payment is for goods and services.


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joejccva71
Contributor
Contributor

I just spoke to someone at Paypal.  They said that it's up to the IRS on whether or not I have to pay taxes on this.  I tried to explain that I can have the other party verify that this wasn't for goods and services, it was to pay the money back to me for a Florida trip that I paid in advance for.   They said that it doesn't matter what the other party verifies, it's already done and it's now up to the IRS whether or not I have to pay the taxes on it.

 

I'm really confused.  

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pkraehn
Contributor
Contributor

What happened with this? Did  you claim it or just let it go.  I have had the same thing happen to me this year.

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