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So, like many of use, I am careful to avoid the 1099K by staying under the thresholds. Yes, I am over 200 transactions, but under 20K and locked things up months ago. Well, a friend sent me some money that was not for goods and services. He did it WRONG since it should have been "friends and family" transfer, which would have put me $100 over the limit. I could see he did it wrong because it prompted me to "create a label" and charged a fee. I refunded the payment and called Paypal. They said that voided the transaction, but I have also been told "refunded payments count towards the 20K". So does anyone know...is this payment really "voided" or did he just accidentally **bleep** me by sending me money?? Thanks in advance! ... View more

I was approcahing the 20K IRS threshhold. I had a family member who wanted to send me some cash as a gift for my son. They transferred the money to my account and now my summary shows I have exceeded the threshold in the "payments received" summary. I am really confused. I thought money received that was not sales oriented would not count against me as a "sale". So, just to clarify if anyone can help...you cannot accept a gift from a family member without being taxed on it if you have sold near the threshhold? ... View more