Please explain this Paypal 1099 form?

[braus3449]

Form says I got about $5,200 over 30 payments last year. I would guess roughly $4,500 of that was for deposits on cars I sold on Ebay including one $3,000 payment in full for a car. Those amounts are already part of my IRS schedule C. Do I list the numbers on the 1099 separately on any tax form? The other $700 was from selling used household items for obviously less than I paid for them.

[heckofagame]

If you are already using schedule C, then you are doing what you should do.

The 1099s are essentially items to "encourage" that sellers report their income. 

[mam98031]

You got a 1099K for less than $20,000 in sales?  That in and of itself is interesting.  

You shouldn't be doing ANY "guessing".  That is a quick way to get yourself into trouble.  PayPal has some very good reports you should used to reconcile the 1099K you received.  when you receive a 1099K you have to claim it on your Federal income tax returns.  And yes on your Schedule see you take away your deductions.

Your household items are different.  Make sure you read the rules and update yourself.  You may not owe any additional taxes on those funds, but you still have to report them since they are on the 1099K.

https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses

[powell-memorabilia]

Hey, I'm jealous.  I wish I had my 1099 from eBay.  It seems like they are rolling in - maybe I'm just last in line.  

[braus3449]

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@mam98031 wrote:

You got a 1099K for less than $20,000 in sales?  That in and of itself is interesting.  

You shouldn't be doing ANY "guessing".  That is a quick way to get yourself into trouble.  PayPal has some very good reports you should used to reconcile the 1099K you received.  when you receive a 1099K you have to claim it on your Federal income tax returns.  And yes on your Schedule see you take away your deductions.

Your household items are different.  Make sure you read the rules and update yourself.  You may not owe any additional taxes on those funds, but you still have to report them since they are on the 1099K.

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Well it looks like $600 in sales is the minimum for the 1099K. I don't see any lines on the tax forms for the 1099K.

[mam98031]

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@braus3449 wrote:

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@mam98031 wrote:

You got a 1099K for less than $20,000 in sales?  That in and of itself is interesting.  

You shouldn't be doing ANY "guessing".  That is a quick way to get yourself into trouble.  PayPal has some very good reports you should used to reconcile the 1099K you received.  when you receive a 1099K you have to claim it on your Federal income tax returns.  And yes on your Schedule see you take away your deductions.

Your household items are different.  Make sure you read the rules and update yourself.  You may not owe any additional taxes on those funds, but you still have to report them since they are on the 1099K.

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Well it looks like $600 in sales is the minimum for the 1099K. I don't see any lines on the tax forms for the 1099K.

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The 1099K threshold does NOT affect your 2021 sales.  The threshold in 2021 is still $20,000 and/or 200 transaction.

In 2022 the threshold drops to $600 and no minimum transactions required.

@braus3449