Does Paypal report taxes? (Help)

Maverik · 10-28-2022, 05:48 PM

I'm sure the answer is yes, but I'm not too sure what to do.

I receive ~$20K a year through Paypal selling cards and a few cases here and there. Of that $20K, $12K-$15K are expenses, or what I paid for the product. My concern is that they are only reporting income and I'm not too sure how to deal with it.

Last year was the first year I did that much and I got a bill from the IRS for an additional $1000 Federal and $700 State....I cant figure out what I got that bill other than Paypal reporting the full $20K

Any tips or tricks come tax season?

theshowandme · 10-28-2022, 05:50 PM

Talk to a CPA

/thread

rngrdanny22 · 10-28-2022, 05:52 PM

rngrdanny22 · 10-28-2022, 05:53 PM

Quote:

Originally Posted by Maverik

I'm sure the answer is yes, but I'm not too sure what to do.

I receive ~$20K a year through Paypal selling cards and a few cases here and there. Of that $20K, $12K-$15K are expenses, or what I paid for the product. My concern is that they are only reporting income and I'm not too sure how to deal with it.

Last year was the first year I did that much and I got a bill from the IRS for an additional $1000 Federal and $700 State....I cant figure out what I got that bill other than Paypal reporting the full $20K

Any tips or tricks come tax season?

First, yes PayPal sends you a 1099.

Second, the threshold is now $600 for everyone.

Third, yes PayPal's 1099 assumes the whole thing is "income" as you put it because that's how 1099's work.

Fourth, call a CPA.

atk825 · 10-28-2022, 05:58 PM

Quote:

Originally Posted by rngrdanny22

First, yes PayPal sends you a 1099.

Second, the threshold is now $600 for everyone.

Third, yes PayPal's 1099 assumes the whole thing is "income" as you put it because that's how 1099's work.

Fourth, call a CPA.

4 should be save the receipts of expenses and then 5 is call CPA

JWBlue · 10-28-2022, 06:00 PM

I am not knowledgeable about this but I am sure expenses can be deducted from that income.

hche · 10-28-2022, 06:03 PM

They only keep track you sales and report them on a 1099-k. You need to keep track of your own expenses. A CPA/tax accountant should be able to help you when filing the return.

palmetto7 · 10-28-2022, 06:06 PM

Get rid of paypal. They have now made the claim that they can "charge" you $2500 for misinformation posts on your social media accounts. Their discretion. For each violation. After major backlash they removed it but it has now been implemented yet again. Screw them.

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PoPCulture · 10-28-2022, 06:08 PM

You can detail and deduct expenses on a schedule C when you file. If you have no experience in this then I would definitely recommend visiting a CPA or tax professional for the first year that you file with a schedule C. Each year after you could probably feel comfortable doing it yourself. Audits are no fun. You will want to avoid one.

nephinfan · 10-28-2022, 06:33 PM

Quote:

Originally Posted by palmetto7

Get rid of paypal. They have now made the claim that they can "charge" you $2500 for misinformation posts on your social media accounts. Their discretion. For each violation. After major backlash they removed it but it has now been implemented yet again. Screw them.

Sent from my SM-G950U1 using Tapatalk

Where are you getting this information? That sounds absurd.

rman112 · 10-28-2022, 06:35 PM

Quote:

Originally Posted by nephinfan

Where are you getting this information? That sounds absurd.

It's real. So many people also started deleting their accounts that they made it harder to do so. They can get bent.

ThoseBackPages · 10-28-2022, 06:35 PM

yes. always pay your taxes

towerymt · 10-28-2022, 06:37 PM

Quote:

Originally Posted by PoPCulture

You can detail and deduct expenses on a schedule C when you file. If you have no experience in this then I would definitely recommend visiting a CPA or tax professional for the first year that you file with a schedule C. Each year after you could probably feel comfortable doing it yourself. Audits are no fun. You will want to avoid one.

+1. There are ways to report so that you're taxed on profit, and not the full amount you rec'd. CPA time or do your own research, cause here you won't know the good advice from the bad and everyone's situation is different.

hche · 10-28-2022, 07:15 PM

Quote:

Originally Posted by palmetto7

Get rid of paypal. They have now made the claim that they can "charge" you $2500 for misinformation posts on your social media accounts. Their discretion. For each violation. After major backlash they removed it but it has now been implemented yet again. Screw them.

Sent from my SM-G950U1 using Tapatalk

The line was rescinded this week.

anusinha · 10-28-2022, 07:30 PM

Cant wait to see all these posts at the end of January

anusinha · 10-28-2022, 07:33 PM

Quote:

Originally Posted by rman112

It's real. So many people also started deleting their accounts that they made it harder to do so. They can get bent.

That sounds blatantly unconstitutional. Does Elon still have a share of Paypal? Give it a couple weeks, a lot of this nonsense will stop.

rman112 · 10-28-2022, 07:34 PM

Quote:

Originally Posted by hche

The line was rescinded this week.

Nope. They just got sneaky with the language.

jhssketchcards · 10-28-2022, 07:34 PM

I’ve done this for several years now and if you keep good records of expenses there are many things you are legally allowed to claim (some surprising). If you plan ahead and just take out roughly 20% of what you make to pay quarterly or at the end of the year, you’ll be fine.

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imbluestreak23 · 10-28-2022, 07:51 PM

keep track of expenses

SupermanBrandon · 10-28-2022, 09:04 PM

Keep track of EVERYTHING
Consult an actual professional
Pay your taxes
Don’t take a bit of advice from idiot strangers (ie BO members)

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mc1 · 10-28-2022, 09:15 PM

Quote:

Originally Posted by anusinha

That sounds blatantly unconstitutional. Does Elon still have a share of Paypal? Give it a couple weeks, a lot of this nonsense will stop.

Sarcasm?

I dont think paypal is run by the feds.

rngrdanny22 · 10-28-2022, 09:20 PM

Quote:

Originally Posted by mc1

Sarcasm?

I dont think paypal is run by the feds.

I believe he was referring to fining someone for using free speech.

rman112 · 10-28-2022, 09:22 PM

Quote:

Originally Posted by mc1

Sarcasm?

I dont think paypal is run by the feds.

That would be like saying that Twitter's censorship has nothing to do with their intertwinement with govenment.

mc1 · 10-28-2022, 09:24 PM

Quote:

Originally Posted by rman112

That would be like saying that Twitter's censorship has nothing to do with their intertwinement with govenment.

If you say so.

rman112 · 10-28-2022, 09:26 PM

Quote:

Originally Posted by mc1

If you say so.

We'll see how many accounts get restored. I'm personally cautious of Musk; believe it when I see it type of thing.

10-28-2022, 05:48 PM	#1
Maverik Member Join Date: Jan 2019 Location: Frisco, TX Posts: 380	Does Paypal report taxes? (Help) I'm sure the answer is yes, but I'm not too sure what to do. I receive ~$20K a year through Paypal selling cards and a few cases here and there. Of that $20K, $12K-$15K are expenses, or what I paid for the product. My concern is that they are only reporting income and I'm not too sure how to deal with it. Last year was the first year I did that much and I got a bill from the IRS for an additional $1000 Federal and $700 State....I cant figure out what I got that bill other than Paypal reporting the full $20K Any tips or tricks come tax season? __________________ B/S/T w/ US residents only

10-28-2022, 06:03 PM	#7
hche Member Join Date: Jan 2010 Posts: 6,299	They only keep track you sales and report them on a 1099-k. You need to keep track of your own expenses. A CPA/tax accountant should be able to help you when filing the return. __________________ I would ban you but I have no sway or pull here.

10-28-2022, 06:35 PM	#12
ThoseBackPages Member Join Date: Feb 2010 Location: Long Island Posts: 90,242 ThoseBackPages	yes. always pay your taxes __________________ Pumpers Paradise #YouCryIBuy Four things that we cannot change each others minds about: Politics, Religion, Third Party Grading, and 2021 Bowman's Best Rookie Cards

10-28-2022, 07:51 PM	#19
imbluestreak23 Member Join Date: Mar 2012 Location: Meandering the matrix code that the hobby/forum overlords spit out Posts: 17,785 shortslabs	keep track of expenses __________________ @shortslabs I'VE WITNESSED HOW THE SAUSAGE IS MADE HERE...IT'S ROTTEN https://www.youtube.com/c/TylerShort

10-28-2022, 05:50 PM	#2
theshowandme Member Join Date: Nov 2020 Location: Northern Virginia Posts: 5,068 theshowandme nova_cards	Talk to a CPA /thread

10-28-2022, 05:52 PM	#3
rngrdanny22 Member Join Date: Jan 2015 Posts: 12,372

10-28-2022, 06:00 PM	#6
JWBlue Member Join Date: Sep 2014 Location: Phoenix, AZ Posts: 9,663	I am not knowledgeable about this but I am sure expenses can be deducted from that income.

10-28-2022, 06:06 PM	#8
palmetto7 Member Join Date: Aug 2016 Posts: 3,429	Get rid of paypal. They have now made the claim that they can "charge" you $2500 for misinformation posts on your social media accounts. Their discretion. For each violation. After major backlash they removed it but it has now been implemented yet again. Screw them. Sent from my SM-G950U1 using Tapatalk

10-28-2022, 06:08 PM	#9
PoPCulture Member Join Date: May 2014 Location: In the Goldilocks Zone Posts: 8,641	You can detail and deduct expenses on a schedule C when you file. If you have no experience in this then I would definitely recommend visiting a CPA or tax professional for the first year that you file with a schedule C. Each year after you could probably feel comfortable doing it yourself. Audits are no fun. You will want to avoid one.

10-28-2022, 07:30 PM	#15
anusinha Member Join Date: Jan 2008 Posts: 13,694	Cant wait to see all these posts at the end of January

10-28-2022, 07:34 PM	#18
jhssketchcards Member Join Date: Jul 2014 Location: Louisiana Posts: 11,407 jhssketchcards2012	I’ve done this for several years now and if you keep good records of expenses there are many things you are legally allowed to claim (some surprising). If you plan ahead and just take out roughly 20% of what you make to pay quarterly or at the end of the year, you’ll be fine. Sent from my iPhone using Tapatalk

10-28-2022, 09:04 PM	#20
SupermanBrandon Banned Join Date: Dec 2018 Location: TN Posts: 15,843	Keep track of EVERYTHING Consult an actual professional Pay your taxes Don’t take a bit of advice from idiot strangers (ie BO members) Sent from my iPhone using Tapatalk