1099k

[jakescloset62]

Can't find the answer to this. Me and my husband have separate ebay accounts linked to separate PayPal accounts. Will they be combined at the end of the year by PayPal for tax purposes? Over 200 sales and over $20000 combined. Thanks

[raylovescats]

Paypal sends you the form so yes - your separate accounts will be combined for paypal purposes.  Just remember to keep track of all your costs, ending prices, shipping, fees, etc as you can deduct those. 

[nobody*s_perfect]

PayPal will go according to what Social Security number is attached to each account. If both accounts have the same SSN, they will be combined when determining 1099K.

[gooofball]

Is it my understanding Paypal will be sending out 1099 to sellers who make $20,000 AND 200 transactions or is one or the other

[nobody*s_perfect]

The federal requirement says both.  However, there are a couple of states with a much lower threshold: just $600.

[gooofball]

Do you know if New York is one of them

[myboardid]

Massachusetts & Vermont. 

[the*dog*ate*my*tablecloth]

However MA and VT changed the threshold with very little notice.

you all do know you have to file taxes on your sales whether you get a 1099 or not right?

[luckythewinner]

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@jakescloset62 wrote:

Can't find the answer to this. Me and my husband have separate ebay accounts linked to separate PayPal accounts. Will they be combined at the end of the year by PayPal for tax purposes? Over 200 sales and over $20000 combined. Thanks

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1099Ks are not filed for "sellers" - they are filed for taxpayer IDs. If your account and your husband's account have the same taxpaper ID (SSN or TIN), they will be combined. 

[mam98031]

@raylovescats wrote:

Paypal sends you the form so yes - your separate accounts will be combined for paypal purposes.  Just remember to keep track of all your costs, ending prices, shipping, fees, etc as you can deduct those. 

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@raylovescats 

Why would PP do that on separate accounts?  Well unless they used the same SSN on both accounts.  But if they used separate SSNs, then they won't be combining these accounts.

[mam98031]

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@jakescloset62 wrote:

Can't find the answer to this. Me and my husband have separate ebay accounts linked to separate PayPal accounts. Will they be combined at the end of the year by PayPal for tax purposes? Over 200 sales and over $20000 combined. Thanks

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Keep in mind that with our without a 1099K getting issued to you, you are responsible for reporting your income to the IRS.  The threshold for 1099Ks is NOT the same threshold for reporting income to IRS.  That confuses some so I just thought I'd mention it.  

So keep good records and make sure you report your income appropriately.

[pink.fish.rule]

@jakescloset62 

There's always the case where it will matter if you're filing jointly or not. If you're filing jointly then the income etc from both your IDs has to be accounted for on your return regardless of whether you received a 1099K for either or both.