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Tax stuff

Tax stuff

I’m a minor and I’ve been selling my things on eBay to get money for car insurance. I guess my dad primarily owns the account since I’m a minor. Anyways I’ve made more than $600 and PayPal keeps asking me for 1099-K stuff. As a minor, not only do I not pay taxes, I’ve never even heard of that. Can someone help me out? Do I have to do this? If so, how? I’m i in danger of violating the law?
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Re: Tax stuff

When you're using PayPal and you receive more than $600, they have to send you the 1099 so the IRS knows you were paid that money and would owe taxes on it.

Just because you're a minor doesn't mean you don't pay taxes. However, if you make less than the standard deduction (which was just increased to $12k/year for individuals) then you would not owe taxes on the amount you've earned.

If you have made more than the standard deduction, then yes, you should be paying your taxes. That said, you would also be eligible to take all sorts of business deductions since you are acting as a business. These deductions would likely get you back below the standard deduction for individuals, so again you wouldn't owe any taxes.

If you're making more than $12k/year you should talk to a CPA to help you get it all worked out.

Angell EYE - www.angelleye.com
PayPal Partner and Certified Developer - Kudos are Greatly Appreciated!

Re: Tax stuff

I really appreciate your reply! I have never worked a day in my life, so I would not have to take any action on this? Where do I go from here?