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Can Paypal withhold money for income taxes?

Adventurer

Can Paypal withhold money for income taxes?

Now that eBay is collecting Tax ID's on many sellers does this mean that Paypal (in any given situation) has the right to withhold part of your balance for the I.R.S.?   

 

 

11 REPLIES
Trailblazer

Re: Can Paypal withhold money for income taxes?

in reply to

Paypal has nothing to do with I.R.S. It's your TAX and you are responsible for it.

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New policy to get rid of TRS (meaning discount)

Re: Can Paypal withhold money for income taxes?

[ Edited ]
in reply to

In theory they could have before, depending on how they treat what they pay you since they did not have your ID and claim to be exempt from backup witholding on file.  Would not surprise me if an aggressive agent did not try to qualify money received from and through PayPal as Commissions and fees paid to independent cnotractors.

 

I would prefer submitting it only on a printed W9 and mailed snail to them or only when logged in to your account. (not me logged in to your account)


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Rockstar

Re: Can Paypal withhold money for income taxes?

in reply to
They should. It would make my life easier at the end of the period.

Re: Can Paypal withhold money for income taxes?

in reply to

How can eBay / PayPal withhold income taxes?

 

The taxes are on your NET income. eBay / PayPal does not know your:

Cost of the item

Packaging cost

Office expenses
Mileage (to and from the Post Office and buying trips)

And a host of other very real costs

 

You would have to file all of this at the end of the year to get your refund. Just put a percentage away to pay your taxes.

 

Never let the Government use your money for free. (You do not get any interest on refunds).

 

 

Guide

Re: Can Paypal withhold money for income taxes?

in reply to

christofle2 wrote:

Now that eBay is collecting Tax ID's on many sellers does this mean that Paypal (in any given situation) has the right to withhold part of your balance for the I.R.S.?   

 

 


Oh paleeze, how much do you want the 2.2% they get now to go up

Guide

Re: Can Paypal withhold money for income taxes?

in reply to

RE:

The taxes are on your NET income. eBay / PayPal does not know your:

Cost of the item

Packaging cost

Office expenses
Mileage (to and from the Post Office and buying trips)

And a host of other very real costs

 

 

I am in the minus when I figure all that 

Guide

Re: Can Paypal withhold money for income taxes?

in reply to

WAIT:

What income tax?    

Guide

Re: Can Paypal withhold money for income taxes?

in reply to

Me too  

 

Re: Can Paypal withhold money for income taxes?

in reply to

Interesting question.  I do know that if you win at the track and your winnings exceed $600 you have to go to the IRS window to collect your winnings and they withhold a percentage for Income Tax.  They do give you a form to include with your tax return.

"It is an intelligent man that is aware of his own ignorance."
Trailblazer

Re: Can Paypal withhold money for income taxes?

in reply to

If you break the $20,000.00 threshold of total payment to Paypal, you will get a 1099, as will the IRS.

Re: Can Paypal withhold money for income taxes?

in reply to

Actually, that really isn't much of an issue for me since all my sales get recorded anyway as required of all businesses.  Of course, expenses are recorded as well.

"It is an intelligent man that is aware of his own ignorance."