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?
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