Hello @YousofM,
Welcome to our community help forum and thank you for your post!
I understand your concern about the tax for the payments you received. All US payment processors, including PayPal, are required to provide information to the US Internal Revenue Service (IRS) about customers who receive payments for the sale of goods and services above the reporting threshold in a calendar year. If your friends or relatives sending you a goods & services payment, it will be reported to IRS. You can learn more about PayPal reporting sales to IRS here.
I hope this information helps,
Bindu
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