Tax ID Money After

innermind
Contributor
Contributor
Paypal Tax Id hold on my account but I'm not a seller. Either way, I want to know if after they take away 24% of my earnings, will I be able to withdraw the rest?
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PayPal_Bindu
Moderator
Moderator

Hey @innermind,

 

Yes! Once you reach $600 USD or more, US tax laws require us to withhold 24% of your payments when we don’t have your US tax ID, such as an SSN, EIN, or ITIN. To give you some time to add your tax ID and stay compliant with tax laws, we’ll place your payments on a tax ID hold for at least 60 days. After the 60 days period, 24% of your payment will be sent to the US Internal Revenue Service and the rest will be released in your PayPal balance. You can be able to withdraw to your bank/card.

 

Regards,

Bindu

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7 REPLIES 7

PayPal_Bindu
Moderator
Moderator

Hello @innermind,

 

Welcome to our community help forum and thanks for posting!

 

I understand your concern about the tax holds. When you receive goods & services payment to your PayPal account, the IRS considers this reportable income and we’re required to send you tax form 1099-K when you receive $600 or more for goods and services in a year. Once you reach $600, tax laws also require us to withhold 24% of your payments when we don’t have your tax ID, such as an SSN, EIN, or ITIN. You can add your tax ID at any time to end the tax ID hold and backup withholding on your payments.

 

You can learn more about Tax holds here.

 

Hope this information helps,

Bindu

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innermind
Contributor
Contributor

I read through it and it said "On each backup withholding date, 24% of your payments will be sent to the IRS and the rest will be released from the tax ID hold." Does that mean I will get my remaining money and be able to withdraw it from the bank?

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Solved

PayPal_Bindu
Moderator
Moderator

Hey @innermind,

 

Yes! Once you reach $600 USD or more, US tax laws require us to withhold 24% of your payments when we don’t have your US tax ID, such as an SSN, EIN, or ITIN. To give you some time to add your tax ID and stay compliant with tax laws, we’ll place your payments on a tax ID hold for at least 60 days. After the 60 days period, 24% of your payment will be sent to the US Internal Revenue Service and the rest will be released in your PayPal balance. You can be able to withdraw to your bank/card.

 

Regards,

Bindu

If you feel this or any other post helpful, please enrich the community by giving kudos or accepting it as a solution.
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skier303
Contributor
Contributor

I have had my tax id hold since January 7th. was told april 7th fund would be released, then june 7th, now unknown. don't believe a word paypal says

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innermind
Contributor
Contributor

Yeah, I see that now. My money was supposed to be released today but suddenly it changed to June 14. Ugh, just great. 

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thanktranak47
New Community Member

Thank you

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Announcer79
Contributor
Contributor

Did you guys eventually get the 76% back to your paypal balance?

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