Taxable goods and services transactions were supposed to be personal payments, what now?
nkrupp87
Contributor
Options
- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Posted on
Sep-20-2022
10:22 PM
So I knew earlier this year that PayPal is now reporting transactions that are listed as "Goods and Services" to the IRS as taxable income if the total amount that you accrue is over $600 in a year. I don't sell anything, I only receive money from my mother on PayPal. I explained to her that if she is going to send me something then she needs to click "friends and family" when sending it so the IRS doesn't consider it taxable income by mistake. Well apparently the majority of the year she has been sending all of her payments to me as "Goods and services" and I just got an email from PayPal saying that since I'm over the $600 threshold they will be sending me the tax form next year and I'll have to report the income as taxable income on my taxes in 2023. Is there a way to relist these transactions? These were not business transactions. All money that I've received on PayPal has been from 1 person (my mother) for personal reasons. These transactions shouldn't be considered taxable income. I'm sure I can't explain that directly to the IRS though. Their going to believe what PayPal tells them. So is there a way to let PayPal know?
Labels:
- Labels:
-
Tax Documents
2 REPLIES 2
Mish22
Contributor
Options
- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Sep-22-2022
02:26 PM
I have this same problem. I collected donations for a charity that didn't have electronic payment options, so I let people pay me then I turned around and wrote a check to the charity. It wasn't income for ME!!! grrrrrrrr
DestinyDecade
Member
Options
- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Sep-26-2022
04:16 PM
It happened to me as well. In April, I received money from a friend as a gift and yet I got the same thing. All this did months later made me close up my paypal account.
Haven't Found your Answer?
It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.
Related Content
- Transactions have been delayed, and payments put on hold. in Transactions Archives
- How to hide email on invoices? in Managing Account Archives
- Transaction fees for USD transfer USD non-US personal account to US personal account in Transactions Archives
- Full payment not received due to hidden fee in Transactions Archives
- I got charged for $15 for reversing the transaction after I received an unknown foreign payment in Security and Fraud Archives