Received a 1099-K - Didn't meet thresholds? (MA/VT)

[Dunroamin3]

$1700 in ebay sales for the year and 52 transactions...

Why the 1099-k...both are WAY below the thresholds...any thoughts...not a busuiness...just and individual

[susannabay]

I got a Paypal 1099-k for MA residents early this year too, however, I recently checked IRS Get Transcript Online at https://www.irs.gov/individuals/get-transcript, I did not see my 1099-K there. Under "Wage & Income Transcript”, it lists all the W2 and 1099s (1099-INT, 1099-DIV, 1099-R etc.) that IRS has on file for you, but the 1099-k is not there. I had a 1099-k issued by Uber (for less than $100) a few years ago, and that 1099-K is there.

On Paypal official web site, I found this:

https://www.paypal.com/us/smarthelp/article/i-live-in-vermont-or-massachusetts%2C-what-are-the-form-...

"Will my income be reported to the IRS?
The IRS reporting thresholds at the federal level haven’t changed, and US account holders whose payments exceed both US $20,000 in gross payment volume from sales of goods and services in a single year and 200 separate payments for goods and services in the same year are reportable.  If your account didn’t reach the federal reporting thresholds, but did reach the revised state reporting thresholds, reporting would only be issued to Vermont or Massachusetts, as applicable."

However, the 1099-k I received in mail is in normal IRS 1099-k format, and it did say "This is important tax information and is being furnished to the IRS".

If you are an MA or VT residents and have received a 1099-K this year, but did not meet IRS threshold, could you also check the IRS transcript online and see if your 1099-k is there?

Thanks! 

[ppmebreh]

I received less than $7000 with 89 transactions as indicated on the 1099-K I received today. It's fine, I sell things I no longer use and have receipts to show that I operated at a loss. Just wondering why I received the 1099-K though? I don't meet the $20,000 payments with payment transactions exceeding 200. I must then have "accepted payment cards for payments", meaning what exactly?

[derekserino]

Same boat.

[imarx]

I received a 1099 k from PayPal today. Based on what I understand I didn't meet the threshold for reporting - I only had ~$5k over a few transactions, well below the $20k/200 transaction limit. I am not using PayPal for a business and was only selling a few personal items. Did the rules change for reporting or was this form generated in error? Obviously I'd rather not report this on my taxes if I don't have to.

[dtam83]

Same here, I sold 1 item last year and the rest was ebates, total under $1k. Wth paypal? I already filed my taxes

[dgoodhue]

I also received a 1099K yesterday and I had file my taxes earlier in the day. I had $1900 & 9 transactions, so I am not sure why I got this form. I was selling personal items that I sold less than I bought them for.  Am I going to have amend my taxes, created a schedule C to show a loss for a business?

[dgoodhue]

I live in MA. It looks the 1099-K are being sent for amount over $600 for MA and VT.

[Whac-A-Mole]

your state wants to know if it is $600 or more

[prezdrovini]

How can you send out a 1099K for people selling their own goods that they already paid sales tax on.  It's not income its selling on Ebay that now all but 2 states can do, so if you are from MA you are now punished and were not even told this?  I find out on 2.3.18 after I have done my taxes that I now am subject to Jan 1, 2017 to Dec 31, 2017 tax implications on personal Ebay sales that are far under 20K but because I am from MA I get zero notice just 13 months later a 1099K.  I would sold my stuff at a yard sale I never would of sold on Ebay.  I can't believe something of this magnitude is not fully disclosed to users on Jan 1, 2017.  How do we now go back and create a "business" from 13 months ago? On some used and some brand new items that a user purchased at full retail paying state sales tax on.   This is not only affecting a state return it grossly affects your federal return, how can that be because you reside in either of 2 specific states, then 48 states have zero state and federal tax implications if under 20K.  I think an attorney is needed to investigate the gross negligence from Paypal on why users were not notified of this drastic change by January 1, 2017.

[Smartdsve]

I am also from MA and just received mine today as well. I had no idea this would happen. And like others I just sold household things that I already paid tax on when I bought them. I lookin further into the law, this is a MA requirement for the $600 and above. There will be no reporting to the IRS if you are beneath the 20k/200 transaction limit. So looks like the only taxes that need to be paid are state taxes. https://www.mass.gov/technical-information-release/tir-17-11-new-massachusetts-reporting-requirement...