Federal Taxes

[tony499]

I'm new at this. Is the IRS notified after 200 sales and $20,000 or 200 sales or $20,000? Also, shouldn't I have received a 1099 by now? Is it mailed?

[claus_42]

it takes 200 & 20000  for a 1099k from paypal unless they would decide to issue one for less amounts

You will have to go to paypal to find the 1099k if issued one unless your in magaged payments

[nobody*s_perfect]

In order for PayPal (or eBay, if you are in their Managed Payments program) to issue a 1099-K to you and the IRS, they would have to process more than 200 transactions  AND over $20K. Exceptions: Vermont and Massachusetts, which have set the threshold at $600.  The 1099-K is not mailed; you have to get it on the web site.

[mementomoria]

Two years ago when I received a 1099 from paypal, they sent me an email saying that I had one waiting for me to print.

[tony499]

Hi Mementomoria, thanks for your response! Same with me even though my sales were much less than $20,000. I wonder why.

[tony499]

Good info...thanks! I need to call Paypal and ask them why the 1099 was sent.

[tony499]

Great info...thanks! I need to get in touch with Paypal to find out why the 1099 was issued.

[dtexley3]

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@tony499 wrote:

Great info...thanks! I need to get in touch with Paypal to find out why the 1099 was issued.

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@tony499 

Why it was sent?  It was sent because you sold items online. 

Paypal is REQUIRED to send the 1099 at the 200/$20,000 threshold to the IRS.  However they make one available to pretty much everyone.  That's because if you sell online you are supposed to claim the income. 

It doesn't start at $20,000.  If you make $20 flipping a couple items you are supposed to claim and pay tax on that $20.  It's easier to complete your taxes if you have the 1099 to work off of, not to mention it's required documentation if you want to use a Schedule C.  

There are too many people that think that the taxes don't start until $20,000 and that's NOT the case.

[nobody*s_perfect]

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@dtexley3 wrote: ....  It's easier to complete your taxes if you have the 1099 to work off of, not to mention it's required documentation if you want to use a Schedule C.  ...

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If you don't meet both thresholds, and thus don't get a 1099-K, you still can and must fill out a Schedule C.