I just spoke to Paypal. It is a new law in some states,just taking effect. (e.g. Vermont and Massachusetts) that lowered the threshold from $20,000 and 200 transactions. In my state it is $600. It just means that they have to report the income coming through Paypal. http://tax.vermont.gov/news/1099-k-information-reporting In terms of it being taxable, it depends on your tax situation and what the transactions are. For example, periodically selling household items is considered the equivalent of an online yard sale. If you paid more for the items than you sell them for, the sales are not reportable. https://www.irs.gov/businesses/small-businesses-self-employed/tax-tips-for-online-auction-sellers. Nevertheless if you hit the new thresholds you will get a 1099-k. Paypal's advice is to consult with licensed CPA.
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