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The Magic Cafe Forum Index » » Tricky business » » Beware PayPal Users (2 Likes) Printer Friendly Version

magringo
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Sad that all I have is a scant
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Your 1099K may shows UR refunds as income so you'll be taxed on that. You have to review all your documents carefully. I found a big one What a pain. I don't want to use PayPay anymore.
TWOCAN
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PORT RICHEY FLORIDA
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Ty I will definitely look at this
Maker of Copper /Silver coin gaffs ,

https://perch-star-nbdt.squarespace.com/home

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Visit my face book page , Copper silver coins by PT
Rennie
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PayPal has been getting worse lately, but what is best to use??
The effect is the important thing, how you achieve it is not.......
davidpaul$
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Pittsburgh, Pa
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PayPal requested I submit my EIN or SS # .
I am not a business, just selling items I already paid tax on because of Government Mandates.
Restaurant work in particular, plus private shows have been non existent as a result..
Plus I pay postage for items I sell and they want to tax that as income?

I'll have my tax accountant figure it all out. Then the Government wastes the money.
Guilt will betray you before technique betrays you!
marc_carrion
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It's not paypal it government overregulation. It affects cash app and venmo too. Really bad policy. Should apply only to business not private sales.
magringo
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We need the account data to show our purchases to offset the sale... Paypal only goes back a few years, so I'm going to try and use Zelle which goes through my bank - but at least I can get information more easily from my bank. Otherwise ... for now on ... keep every record of every purchase and sale you make... What a pain.
Dan Ford
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Illinois
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The one reason I do not use Pay Pal. Checks or Money orders only for me.
magringo
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One more thing - save every (or print off) every private message you send or receive (depending on if you're buying/selling) - to keep for your records in case you sell and item and you need some back-up that you might be able to tie to a PayPal note...but if you need notes or records beyond three years -- you an call PayPal and ask for help... I've spent an entire day trying to get help though. They are creating a report to go back to 2012 of all my transactions but will take a few days. I suggested to the PayPal person that they make customer records available for the longevity of the account - this will be the best help you can get in keeping what you've sold something to offset the "income."
Blindside785
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Olympia, WA
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It’s anything over $600 in all this year you will get a tax form I believe
NEKKODDD
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I would assume it only generates a 1099 for individual transactions of $600 or more. I don’t think they would do it over an accumulation of transactions over $600. Just my thoughts and $ .02!
Al Desmond
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Secret Mountain Lair in Conifer, Co
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Quote:
On Jan 29, 2022, NEKKODDD wrote:
I would assume it only generates a 1099 for individual transactions of $600 or more. I don’t think they would do it over an accumulation of transactions over $600. Just my thoughts and $ .02!


Wrong.

If your account generated more than $600 in payments to you.

Customers will be required to provide tax information like an Employer Identification Number (EIN), Social Security Number (SSN), or an Individual Taxpayer Identification Number (iTIN), if they haven’t already provided it when they approach $600.00 USD for the sale of goods and services during 2022.

We may ask you to provide your Taxpayer Identification Number (TIN.) A Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN), to your existing account, if you don’t already have one on your account. If your TIN fails verification, you’ll need to complete a substitute Form W-9.

If you meet the IRS threshold in a given calendar year, PayPal will send you a Form 1099-K in January of the following year and file this form with the IRS.


https://www.paypal.com/us/smarthelp/arti......k-faq729
martonikus
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Form 1099-K is NOT the same as form 1099-MISC which documents income reported to the IRS. The entries on form 1099-K, including the total, are for documentary purposes and the IRS does not consider these totals to be a portion of your taxable income. You are not expected to add such totals to the gross income reported on your tax return. Ask your tax professional for the details. But understand that PayPal is not doing anything to make you pay taxes on payments that do not represent income.
Dannydoyle
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They are trying to stop crime such as drug sales and money laundering and some others. Not really bad goals so if they have to change the rules so be it.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
marc_carrion
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Quote:
On Jan 30, 2022, Dannydoyle wrote:
They are trying to stop crime such as drug sales and money laundering and some others. Not really bad goals so if they have to change the rules so be it.


Nice joke... drug dealers making $600 a year are a major concern... sure!
Dannydoyle
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Yea do enough transactions with bots and such. And they put the limits where they do so the CAN’T to these things. You may not have enough knowledge of banking or international banking or the laws and why they exist, and clearly you don’t, but it is always to stop fraud.

What can be done with computers and crypto currency and Paypal is just mind boggling. The most difficult thing about illegally gained money, specifically cash, is not making it. The real issue is figuring out how to spend it. Always has been. Spend enough without some way to show it was earned and you have a problem In most countries.

A lot of it is about tax revenue as well.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
marc_carrion
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Let's not be condescending with each other. I have an undergraduate degree on Computer Science and a Graduate degree on Information Security.

I'm pretty sure none of these will stop major money laundering from any source. You mentioned drug sales, this does not address drug sales in cash (are we going to ban cash next?)

This law does not address bitcoin either...

Spending money.... ok, so drug dealers buy $600 per year to get that money clean? seems pretty ineffective... maybe opening a strip club in the Ozarks is a better idea...

This law won't prevent anything and it is an attempt to control private sales of any type. $600 is a ridiculous limit. Private sales of used stuff is a market that has until now escaped government control, and now they are getting their greedy hands on it. That's it.

The people that passed this law either are stupid and believe they fighting money laundering as you say, or they believe we are stupid and will believe them. I don't think they are stupid, so I believe thy think I am.

Sorry for the rant on a Magic forum, this should not be the place to address politics, but this affects ALL type of sales, next will be keeping track of your yard sale sales and make sure you report that to the IRS.
Dannydoyle
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Should it have escaped government control?

And I’m not being condescending and I’m very sorry if it came across as such.

Banking laws are quite complicated. I’m not being condescending in saying so. I do not understand them all either. I am however suggesting that not knowing it might be better if we didn’t assume folks are dumb, greedy or corrupt.

I can see from your response you do not understand the point I am making though. Which again is not condescending and probably is more my inability to communicate effectively and less your ability to understand.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
marc_carrion
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You bring a very valid point, 'should it have escaped government control'? In my opinion, yes. It's none of their business what I do with my private property that I already paid for with the money I have left after paying taxes. Other people may disagree.

I understand there are products and substances that are controlled, I can't get a Dr. prescription and sell those pills to someone else. Just one of several examples. But if I buy a book and decide to sell it after reading it, do I get to deduct a loss from my income if I sell it for less? so, why should I have to declare a profit? If you are buying and selling as a business, then I accept it. But if as a business you make $600 a year, you better close your business. Why not keep it at 20k like it has been until now?

You mention banking laws are complicated... well this is the reason... everyone needs to become an accountant, keep track of every expense and income (I guess if I find $20 on the sidewalk, the government should know too)... instead of simplifying the tax code, we are complicating it. And if you do a mistake, you get audited, and need to spend money on lawyers. Shouldn't the government try to make people's life easier and not more complicated?

That's all my saying.
Dannydoyle
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Eternal Order
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Yes they should I agree. The worst part in my opinion is the more it is complicated the more it hurts those who can’t afford the expensive help needed to comply. So those who can afford it do and those who can’t are caught in a web of bs.

Seems counter productive even if well intentioned.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
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