Sellers Who Use Paypal

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As per a new law for 2011, PayPal will keep track of what you do, and 1099 you for more than 200 transactions per year or more than $20k a year.

This is going to apply to any and all merchant style accounts, not just paypal.​
 
Quote:
This is going to apply to any and all merchant style accounts, not just paypal.

I heard it was going to be if you have more than 200 transactions AND earned more than $20,000. Not one or the other.
idunno.gif
 
Quote:
This is going to apply to any and all merchant style accounts, not just paypal.

I heard it was going to be if you have more than 200 transactions AND earned more than $20,000. Not one or the other.
idunno.gif


Yeah, I think you're right.

I've always assumed that the IRS could get access to your PayPal account anyway, so I've always reported it. I remember one time I got a notice saying that my PayPal account was picked by the IRS to be audited because they were looking for people sending a lot of money offshore. Yeah, right. I know they were just snooping around to see if they can find some extra tax money.
 
Last edited:
MyKidLuvsGreenEgz, if you PM me your email I can show you how to do this on your own site. (If you need help setting it up, let me know and I can help!
smile.png
)
 
Taken from an online site
Starting in 2011, anyone who has a merchant account, Paypal account or similar payment processing account will receive Form 1099-K from their service provider. This new Form 1099-K is required unless the account-holder has total payment transactions for the year that do not exceed $20,000 and the total number of transactions does not exceed 200.

That does not mean that these merchant account providers cannot issue 1099-K's for ALL transactions, if they find that is easier (or feel safer) than doing just those required by the IRS. The merchant account provider for my websites informed me that they would be issuing them for ALL providers (regardless of $$$ or transactions) as of 2011.

Also, the 1099-K will be for the GROSS amount passed through, so any ebay or paypal or merchant fees will have to taken as deductions on your return.​
 

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