Did anyone else get an email from paypal today about 1099-k

Knopfler

Trying to figure out if only people who are receiving the 1099-k got this or anyone who was close to it:

Important Notice – Your Form 1099-K for 2011

At the end of this month, PayPal will send you and the IRS a copy of your Form 1099-K for the 2011 tax year in accordance with Internal Revenue Code Section 6050W. Under the new rule, PayPal is required to report the total payment volume received by any payee that:

· Received more than $20,000 in gross payment volume from sales of goods or services in 2011, AND

· Received more than 200 separate payments in 2011.

If you receive a 2011 Form 1099-K, this means your PayPal account exceeded both thresholds during the 2011 tax year.

What do I need to do?

Please contact a tax professional for direction on how to use Form 1099-K. PayPal is not qualified to give you specific tax guidance. To review a blank copy of Form 1099-K, go to http://www.irs.gov/pub/irs-pdf/f1099k.pdf.

Questions?

If you have questions about the information contained on the form, please visit paypal.com/irs. We’ve updated the site with helpful information and FAQs about Form 1099-K and its contents. Learn More.

We appreciate your business and look forward to a continued partnership.

PayPal

© 2012 PayPal Inc. All rights reserved. PayPal is located at 2211 N. First St., San Jose, CA 95131.

FavreFan1971

Not even close to that amount but if you are that close you should have been filing as a business anyhow.

Knopfler

I thought about it buy figured it was not worth it to get a few hundred extra dollars back on my taxes, and it was a one year ab-oration. Normally sell about $1k a month but eliminated a lot of excess cards last year. I'm sure I'll be able to show a loss but would rather just save the time and call it even.

OAKESY25

yes i got it too..

JasP24

<< <i>Not even close to that amount but if you are that close you should have been filing as a business anyhow. >>



Yep, got the same e-mail. Been waiting on it so I can complete my tax filing.

You don't need to be a business or an LLC. It's up to your individual situation. I do my own taxes (I've been certified), but certainly wouldn't try to give any tax advice as each situation is different.

If you are a hobbyist/collector and the $20,000 are proceeds from selling hobby related items, you need to consult a tax pro with your specific situation and they should be able to tell you what your best course of action is. You may be better off setting up a business license or as an LLC. In my case, I actually come out about even without the headaches of filing as a business. There are many options, so make sure you do your homework and incorporate your families numbers the options to see what works for you.

Jason

Knopfler

<< <i>yes i got it too.. >>



Were you over the 20k mark?

OAKESY25

yes I was..

sportscardstop

My work got the email today and they were over the 20k mark. I am under the 20k mark and did not get the email. I think they are just sending it to people over 20k.

swartz1

How does this pertain to people that do not consider themselves to be a business?

Knopfler

***update*** Now it is there and they did count all the payments that are also reported on 1099-misc. Going for the double taxation I guess. What a mess.

Hmmm, this is weird. I figured out that I had about $18k of paypal sales last year, but I also had other payments received that are already reported on 1099-MISC reports that would put me over the $20k if they are counted too. I was hoping these payments would not count towards the $20k since they are not for the sale of goods or services. Today I get an email from paypal saying my 1099-k form has been prepared for me and I can locate it in my paypal account under History--Tax Documents but when I go to that page, it shows no documents for 2011. Does anyone actually see the 1099-k in their paypal tax documents page?

Treetop

I received my 1099 in the mail from Paypal yesterday. based on my numbers verses theres it seems they included $2400 in gift payments on the 1099. I'll have to look closely over the weekend.

thedutymon

<< <i>How does this pertain to people that do not consider themselves to be a business? >>



Doesn't matter, if its on a 1099 of any flavor its Income Baby and your gonna pay taxes on it, except what you can offset with losses and expenses!

YeeHah

Neil