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Community Member
Posts: 40
Registered: ‎11-20-2002

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.?   

 

 

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led_speaker_rings
Community Member
Posts: 906
Registered: ‎03-05-2013

Re: Can Paypal withhold money for income taxes?

in reply to christofle2

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)
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fruitacres
Community Member
Posts: 4,768
Registered: ‎04-06-2010

Re: Can Paypal withhold money for income taxes?

[ Edited ]
in reply to led_speaker_rings

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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babylove80jr
Community Member
Posts: 3,570
Registered: ‎01-15-2007

Re: Can Paypal withhold money for income taxes?

in reply to christofle2
They should. It would make my life easier at the end of the period.
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Community Member
Posts: 181
Registered: ‎04-28-2006

Re: Can Paypal withhold money for income taxes?

in reply to christofle2

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).

 

 

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gporpc
Community Member
Posts: 3,719
Registered: ‎01-28-2010

Re: Can Paypal withhold money for income taxes?

in reply to christofle2

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

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gporpc
Community Member
Posts: 3,719
Registered: ‎01-28-2010

Re: Can Paypal withhold money for income taxes?

in reply to lgauctionservice

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  BouncingLOL.gif

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gporpc
Community Member
Posts: 3,719
Registered: ‎01-28-2010

Re: Can Paypal withhold money for income taxes?

in reply to christofle2

WAIT:

What income tax?     AlfredE.jpg

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gporpc
Community Member
Posts: 3,719
Registered: ‎01-28-2010

Re: Can Paypal withhold money for income taxes?

in reply to gporpc

Me too   b4.jpg

 

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Community Member
Posts: 2,525
Registered: ‎06-13-2005

Re: Can Paypal withhold money for income taxes?

in reply to christofle2

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."
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deserdog
Community Member
Posts: 461
Registered: ‎11-19-2004

Re: Can Paypal withhold money for income taxes?

in reply to 7606dennis

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

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Community Member
Posts: 2,525
Registered: ‎06-13-2005

Re: Can Paypal withhold money for income taxes?

in reply to deserdog

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."
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