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Hi, I have a few questions about how PayPal works. If you have a PP balance that can be transferred to a bank does PP report this to the IRS over $600? Do they report larger bank transfers from your balance? Also, at what point will they send me a tax form? I don't use PP to sell anything. I only get some small earnings from survey sites with some gift cards or PP as extra side cash. I don't know if this needs to be reported as earned income to IRS though or is it considered a one-time payment since it's not consistent. It seems like they should've sent me a tax form but I've yet to see one over the years.
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PayPal only reports payments received in to your PayPal balance as goods and services. Not bank transfers. The payments that were charged the 2.9% + 30 cents or 4.4% + 30 cents fee would be counted towards receiving the 1099K tax form.
Whether you would receive a 1099K depends on your state or it will fall back on the federal requirements of 200 transactions/$20K thresholds:
How does PayPal report my sales to the IRS? Will I receive a tax Form 1099-K?
Please consult a tax professional for filing requirements.
Kudos & Solved are greatly appreciated. 🙂
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PayPal only reports payments received in to your PayPal balance as goods and services. Not bank transfers. The payments that were charged the 2.9% + 30 cents or 4.4% + 30 cents fee would be counted towards receiving the 1099K tax form.
Whether you would receive a 1099K depends on your state or it will fall back on the federal requirements of 200 transactions/$20K thresholds:
How does PayPal report my sales to the IRS? Will I receive a tax Form 1099-K?
Please consult a tax professional for filing requirements.
Kudos & Solved are greatly appreciated. 🙂
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Thank you for the reply this was helpful. I must've missed that in the FAQs when I was searching earlier.
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