I have a PayPal business account and I just did my first craft fair. I have it set to calculate tax. I want to transfer all of the money to my checking and keep my tax money separate myself but it will only let me take the net amount. Not sure if I’m supposed to file and pay taxes through PayPal somehow or how I’m going to get that money back when I need to file.
That's a great question and I'd be happy to help with this. When you choose to automatically calculate taxes for sales, that money is included in the entire sale. The best thing to do is to download a report of your activity and calculate all tax on your transactions. Once you have this amount, you can withdraw the money to your bank and separate the money for tax once you get it.
