IRS Taxing Question

[Destinee_H]

So, this is a tax question. So I made around roughly 448 on “Goods & Services” for 2021. I paid the fees and shipping was included in the price paid to me so it was easier to get paid on PayPal then go to “Pirate Ship” to print out their shipping label and already be paid for the label through PayPal. So that would make it roughly anywhere from $200-$300 if I took shipping charges off of the “Goods & Services” amount I made. If I “Know” for a fact I spent way more on supplies than I did getting paid do I need to report my total on my taxes from PayPal? I hope this makes sense!! Just don’t want to get in trouble in the long run….this was only a hobby “business”.

[PayPal_JonK]

Hello @Destinee_H,

Welcome! This is a great question. We can provide information on the limits for receiving a 1099k, however we recommend reaching out to a tax professional for this specific question. Here's a bit more information regarding Common US IRS Tax Questions 1099-K, B-Notice, and FATCA.

I hope that helps!

 - Jon K