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Will my PayPal income prior to "managed payments" combine with PayPal incoming transactions? 1099k

I have an unusual type of question, but I feel is very important due to the fact that I prefer to avoid any dealings or run-in's with the IRS. Not that I'm running from them or commiting tax evasion, I just prefer to not have any dealings with them IF possible. If I must, then I do what must be done, but until then, I'm searching for some information regarding the 1099k, managed payments, & PayPal.

 

A quick rundown of my issue: I assume that since my eBay account switched to eBay's "managed payments" system for receiving payments for my items sold starting today, my total income for this year (concerning the 1099k) will be calculated from today until the end of the year, right? Or will it be calculated by adding my payments received with PayPal also?

**Throughout the year, I've used a family member's PayPal account for receiving payments since some of the items I sold was for him.

**My main PayPal account is also used for receiving payments on other websites & platforms.

**My eBay sales year to date so far is around $12,000.

**My main PayPal account incoming payments year to date is around $18,000.

**Since eBay's "managed payments" will be handling the transactions going forward, I will not be using my PayPal account anymore. 

With that being said and managed payments starts today, let's say I receive $5,000 in eBay sales starting today until the last day of this year, that would bring my total eBay sales for the whole year to a total of roughly $17,000. Will I still receive a 1099k since my PayPal incoming sales totaled $18,000, and add the "managed payments" $5,000, that would bring my total income to $23,000.... If I must not sale anything else this year to avoid the 1099k, I will do that. Just trying to get a heads up on what to expect... or will eBay only issue the 1099k based on my sales on this given eBay account regardless of the payment provider used to receive the payment? 

Thank you in advance for any feedback or input! 

Accepted Solutions (1)

Accepted Solutions (1)

@livelifebeautiful   The thresh hold for PayPal to issue the 1099K is $ 20,000.00.  eBay's thresh hold is the same for Managed Payments, this is from the Help Pages:

 

"If you’re a managed payments seller who has more than 200 transactions and generates more than $20,000 in sales in a calendar year, you’ll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable."

 

The companies are separate and so are the 1099K's if they apply.

 

 

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