financial summary

[mgoss79427]

on my financial summary, i thought what was reported to the irs was the sales activity, (payments received minus the refunds). if not, why is this total in bold print?

[sharpiemarker]

@mgoss79427 

https://www.paypal.com/us/webapps/mpp/irs6050w

How is the $20,000 calculated? Will it be calculated based on net or gross transaction earnings?

As required by the rules, the $20,000 will be calculated by looking at a seller’s gross payment volume for sales of goods or services. Gross amount means that any adjustments for credits, cash equivalents, discounts, fees, refunded amounts or any other amounts will not be netted out.

In addition, the reported amount will include any shipping and handling, sales tax or other fees which are included in payments you receive. We realize that these amounts may or may not be included in your taxable income, but we are required to report them. You should work with your tax advisor to determine how these items should be treated for tax purposes.

More here:

https://www.paypal.com/us/smarthelp/article/common-us-irs-tax-questions-1099-k%2C-b-notice%2C-and-fa...

How does PayPal report my sales to the IRS? Will I receive a 1099 tax statement?

• $20,000 USD in gross payment volume from sales of goods or services in a single calendar year
• 200 payments for goods or services in the same year*