I sent some money to a friend, but the money is being treated as 'Goods and Services'. I just transferred the money I owed and don't want him to be taxed over it. What can I do? If he refunds, he still has to pay a fee and sign the 1099-K. Papypal did not offer an option to send money as 'Friends and Family'.
If you don't have the friends/family option in your country OR you selected goods/services in error then the payment will also be viewed as for goods or services.
Pointless refunding as paypal do not return any fee incurred as part of any refund made.
Advice is voluntary. Kudos / Solution appreciated.
A friend sent me money, it was definitely personal, but it came through as g&s. Friend asked me to send it back, thinking maybe they used g&s by mistake. Resent to me and again came through as g&s. I have no idea how or why. Wondering if there’s a dollar amount that triggers PayPal to automatically somehow change what is personal to business. If so, that needs looking into with the $600 1099 mess.
