1099-k help

[fitburse]

Hello,

So I have to file the 1099-k for 2017.

I'm pretty new to this but what information would I need to take to my accountant?

Any information from eBay that I may need to provide? Also, I downloaded my 1099k reconciliation. Is that my total sales for 2017? I would greatly appreciate all help and comments. Thank you!

[nederlander1]

That's the first time I have ever heard of PayPal generating a 1099 for someone under the $20,000 and 200 item limits. Did they change their policy? Last year I sold around the same amount as you, actually more, and never received a 1099. Nor the year before. This is news to me.  I used a schedule C.

[fern*wood]

On Feb 1st I received an email from PayPal which included the following" 

"During tax year 2017, Massachusetts (MA) and Vermont (VT) implemented Form 1099-K reporting requirements that are different from federal tax reporting requirements. These different reporting requirements mandate that PayPal report on account holders who receive payments for goods and services in excess of $600. "

Then on Feb 2nd I received an email advising me that didn't apply to me and I'd gotten the email in error since I don't live in those states.

[nederlander1]

Oh so its an individual state thing trying to crack down on the underground economy. 

[the*dog*ate*my*tablecloth]

I live in MA and just got a 1099-K today even though I don't meet the threshholds for this year. They're coming. 

[partial*eclipse]

I'm glad I read this thread, it's a surprise for me.

[moeyt2010]

Sadly, check your Mailbox.
I called PayPal, and although online they say NO TAX DOCUMENTS, the representative insisted all Mass Sellers who sold more than $600 in 2017 are getting one.

[moeyt2010]

"Then on Feb 2nd I received an email advising me that didn't apply to me and I'd gotten the email in error since I don't live in those states."

Lucky you.

Sadly, I don't see President Trump interefering at all with this, so more states will be following suit 😞

[moeyt2010]

When you gross $900 paying an Accountant $500 really isn't an option.

Quitting eBay is the only thing left.

[the*dog*ate*my*tablecloth]

It's no big deal to me to get a 1099, usually I get them. I report my income regardless so it's really no different. It's the people who do not report who are going to get a surprise.

[fern*wood]

---

wrote:

"Then on Feb 2nd I received an email advising me that didn't apply to me and I'd gotten the email in error since I don't live in those states."

Lucky you.

Sadly, I don't see President Trump interefering at all with this, so more states will be following suit 😞

---

I get one anyway.  I guess paypal just didn't want me to freak out over the VT or MA part.  I've filed taxes for years whether I got one or not since I sell my stuff for a profit, and keep track of my deductions all year long.  Filing on line is rather cheap.

[wamegun]

So here is what MA says: 

Where amounts paid in settlement in a calendar year to a payee meet the Massachusetts threshold but not the IRS threshold, a TPSO should submit Form 1099-K to the Department directly using MassTaxConnect (MTC).

https://www.mass.gov/service-details/new-massachusetts-reporting-requirements-for-third-party-settle...

[7606dennis]

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wrote:

Yes, I received the form.

Don't I have to report it?

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You will need to include it with the information you turn over to your accountant or tax professional when preparing your tax return.

[7606dennis]

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wrote:
I've always wondered how many sellers that fly under the PayPal $20,000 and 200 transactions thresholds that generate a 1099 to the IRS actually do report their earnings.

---

That is why businesses are required to keep books.  A 1099 is merely an IRS form that is used to report income you received to the IRS.  There are quite a few varieties of 1099's showing income from different things.  If you do not receive one from PayPal because you fell under the requirements for them to send you one, doesn't mean you don't have to report the income you did make.  The Schedule C is the form most sole proprietors must use to report their business income (or loss).  However, I believe there are others for partnerships, etc.  Again I suggest consulting a tax professional.

[lenotra]

i got one for the first time since I am in Vermont. seems ridiculous since the 1099 k did not include my full name or even my SSN. I was also not keeping any records and don't know what to do. I basically have no earned income and have not filed taxes for the last two years...guess I will contact the Senior help line on Monday. I am a poor old lady trying to sell some used items from thrift stores to make ends meet.

[the*dog*ate*my*tablecloth]

If you are purchasing items for resale, you're a business. You should have been reporting your income all along. Hopefully your entire income will still fall under the threshold for paying taxes on it.