OMG I only sold less than $2,000 of household junk and PayPal issues a 1099-K for $1300.

[Songman64]

What the heck- I lost my shirt on the stuff I sold and now I have to pay taxes? I sold under $20,000 only about $1500.00  for the entire year of household junk that I sold way under my cost basis. What gives? This can't be the law?

[PayPal_Olivia]

Hi @Songman64,

I'm sorry to hear that the 1099-K came as a surprise. It sounds like you may be located in either Vermont or Massachusetts. Recently, those two states added a requirement for a 1099-K to be issued for total received goods and services payments of $600 or more.

The federal requirement remains at $20,000 or more received over 200 or more payments, but the state requirement also applies.

Aside from the different threshold, all the other aspects of receiving a 1099-K are the same in those two states as any other.

For more information regarding 1099-Ks, please take a look at this FAQ.

I hope this helps!

Olivia