My friend sent money through Goods and Services instead of Friends and Family.

[Temp20230227g]

I bought something for my friend who lives in another country, because the online shopping site is not available in her country. I asked her to send me the money on PayPal and she accidentally sent it to me as Goods and Services instead of Friends and Family. Now my account says that I've exceeded the $300 amount for sales even though I didn't make a sale. I don't want to get a 1099 or whatever tax form for this and I have a job so I am taxed a decent amount already. Is there anything I can do to get this transaction changed to Friends and Family since I was doing my friend a favor and not receiving anything in exchange? I don't want to me taxed on the amount I received. My friend already sent less than the amount she was supposed to send and I'm taking a loss because I wanted to do her a favor.

[Whitelilyphoto]

What I learned is that you’ll receive the 1099-k and then you have to go and contact PayPal they the 1099-k is wrong. How fun that will be during tax time in 2024. You think PayPal would go ahead and make the work easier on themselves right now. I have the same problem. They won’t help me at all saying it’s a new law. I know it’s a new law and you have to report it but you have to report it if it’s correct. So sending the refund should mean you wouldn’t report it or receive a 1099-k but they are telling me otherwise. Either way it will be inaccurate and they will have to correct it and report to the IRS proper information.