So why does paypal want my SS Number?

steelielee · February 19, 2013 10:33PM

Apologies if this has been discussed before, Firefox 16 doesn't drive the cu search process correctly.

I went to add some $ to my PP account this AM and it won't let me add money until I complete my SS or tax ID number.

Now why do you suppose PP wants that info??

BigA · February 19, 2013 10:36PM

'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported

LanceNewmanOCC · February 19, 2013 10:48PM

.
use internet explorer or a different version of FF to use the main search function for sure have to use specific versions to use the advanced search

well worth it to figure it out
.

Tiny · February 19, 2013 11:00PM

Why are you adding $ to your PP account. Do you not have a credit card connected to the account?

TwoSides2aCoin · February 19, 2013 11:04PM

Pay Pal is the place that holds money from merchants and vendors transacting in business. They must report. I've received 1099s for a few years now. It's come down to this because regulators know millions of people are not reporting income from sales.

I suppose a person could give a Federal Tax Identification number, in lieu of the SSN, although it's pretty simple why it is needed for business. Pay Pal is big business.

steelielee · February 19, 2013 11:06PM

<< Why are you adding $ to your PP account. Do you not have a credit card connected to the account? >>

Refund a sale on ebay......Don't think you can do that using a CC can you??

steelielee · February 19, 2013 11:09PM

<< Pay Pal is the place that holds money from merchants and vendors transacting in business. They must report. I've received 1099s for a few years now. It's come down to this because regulators know millions of people are not reporting income from sales.

I suppose a person could give a Federal Tax Identification number, in lieu of the SSN, although it's pretty simple why it is needed for business. Pay Pal is big business. >>

Interesting...I've been selling on Ebay/PP for about 3 years now. Never received a 1099. There must be a minimum $ amount that triggers a 1099? I'm not a hi-volume/hi-dollar seller, so I'm assuming I'm under whatever limits there are...guess the trick is to stay under, but probably not for long. After all, drones are watching now

Tiny · February 19, 2013 11:12PM

Oh O K I'm not sure about refunds but I would think that PP would use what ever method they
could if your account has a zero balance if you wanted to refund, send or purchase something.
I would agree with BigA that the Gov is smelling out all the internet dollars they ain't getting and
are cracking down on everything.

OPA · February 19, 2013 11:25PM

<< 

<< Pay Pal is the place that holds money from merchants and vendors transacting in business. They must report. I've received 1099s for a few years now. It's come down to this because regulators know millions of people are not reporting income from sales.

I suppose a person could give a Federal Tax Identification number, in lieu of the SSN, although it's pretty simple why it is needed for business. Pay Pal is big business. >>

Interesting...I've been selling on Ebay/PP for about 3 years now. Never received a 1099. There must be a minimum $ amount that triggers a 1099? I'm not a hi-volume/hi-dollar seller, so I'm assuming I'm under whatever limits there are...guess the trick is to stay under, but probably not for long. After all, drones are watching now

>>

20K in annual sales and 200 or more transactions will trigger a 1099. I'm still not sure if a "gift transaction" is exempt.. 10 annual sales of $10k each will not trigger a 1099.

TwoSides2aCoin · February 19, 2013 11:33PM

Aside from drones, and other issues, the PayPal question is simple. There is the Privacy Act of 1973 which I believed meant we were not subject to surrendering that number... , but I cannot keep up with the CHANGING laws.
The 1099s get triggered after 200 transactions or $20,000. in sales.
I issue them on sub-contractual labor, but we're mixing oil and water now. Let's discuss eBay

OKbustchaser · February 20, 2013 12:47AM

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

and should be.

If everyone was honest enough to actually report ajj earnings rather than simply submitting W-2s then 3rd party reporting wouldn't be necessary. That ain't gonna happen.

WillieBoyd2 · February 20, 2013 12:49AM

Paypal is effectively a bank.

kryptonitecomics · February 20, 2013 12:56AM

<< 

<< 

<< Pay Pal is the place that holds money from merchants and vendors transacting in business. They must report. I've received 1099s for a few years now. It's come down to this because regulators know millions of people are not reporting income from sales.

I suppose a person could give a Federal Tax Identification number, in lieu of the SSN, although it's pretty simple why it is needed for business. Pay Pal is big business. >>

Interesting...I've been selling on Ebay/PP for about 3 years now. Never received a 1099. There must be a minimum $ amount that triggers a 1099? I'm not a hi-volume/hi-dollar seller, so I'm assuming I'm under whatever limits there are...guess the trick is to stay under, but probably not for long. After all, drones are watching now

>>

20K in annual sales and 200 or more transactions will trigger a 1099. I'm still not sure if a "gift transaction" is exempt.. 10 annual sales of $10k each will not trigger a 1099. >>

Pay Gift transfers are exempt and do not roll up as part of the 20K........

jdimmick · February 20, 2013 1:08AM

Apparently you breached the Min required to meet reporting requirements.

People might as well face up and realize if they are going to do biz, they need to report their fair share.

On CC machine's there is no min, the banks automatically report all transaction amounts in a monthly breakdown via 1099-K.

I suspect pay-pal will be required (forced) to do the same here shortly.

jmb · February 20, 2013 1:19AM

<< 

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

and should be.

If everyone was honest enough to actually report ajj earnings rather than simply submitting W-2s then 3rd party reporting wouldn't be necessary. That ain't gonna happen. >>

Just because somebody sends me $1000 via paypal does not mean that $1000 is INCOME. What if the item I sold for $1000 on ebay cost me $1200 6 months ago ?
Am I now allowed to deduct the $200 loss on my tax return since my income from the transaction is ZERO and I lost $200 ?

There is really only one reason ............. PLUNDER.

airplanenut · February 20, 2013 1:49AM

<< 

<< 

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

and should be.

If everyone was honest enough to actually report ajj earnings rather than simply submitting W-2s then 3rd party reporting wouldn't be necessary. That ain't gonna happen. >>

Just because somebody sends me $1000 via paypal does not mean that $1000 is INCOME. What if the item I sold for $1000 on ebay cost me $1200 6 months ago ?
Am I now allowed to deduct the $200 loss on my tax return since my income from the transaction is ZERO and I lost $200 ?

There is really only one reason ............. PLUNDER. >>

Uhhh... yeah, of course. PayPal reports their share of your business. It's your job to record all of it. At worst, PayPal is requiring sellers to substantiate their claims of loss/break-even/profit rather than have it easily slip under the radar. Any seller who was accurately reporting business levels before PayPal started sending 1099s saw zero impact of the 1099, except having one more piece of paper to send the IRS.

OKbustchaser · February 20, 2013 1:53AM

<< 

<< 

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

and should be.

If everyone was honest enough to actually report ajj earnings rather than simply submitting W-2s then 3rd party reporting wouldn't be necessary. That ain't gonna happen. >>

Just because somebody sends me $1000 via paypal does not mean that $1000 is INCOME. What if the item I sold for $1000 on ebay cost me $1200 6 months ago ?
Am I now allowed to deduct the $200 loss on my tax return since my income from the transaction is ZERO and I lost $200 ? >>

NOTE CAREFULLY!!! I AM NOT A CPA OR OTHER TAX EXPERT.

But, if that is your only transaction of the year, then yes, TTBOMK, it would be deductable as a short term capital loss.

<< 

There is really only one reason ............. PLUNDER. >>

Yes, you are right. The only reason that a person would not declare all such transactions is plunder--HIS.

OPA · February 20, 2013 2:09AM

<< The 1099s get triggered after 200 transactions or $20,000. in sales. >>

Not exactly correct...it's a combination of both & not just one.

MrHalfDime · February 20, 2013 2:29AM

More experienced eBay sellers than I have offered some very good advice and answers here, but I would add one little additional piece of advice that seems to have been overlooked. Just make sure that whomever you furnish your Social Security number to is actually Paypal, and not some other entity or hacker who has hijacked your account. It could be a phishing attempt to steal your identity and information. Make certain that you are on a secure website (https) whenever you share such sensitive information, and maybe even contact Paypal directly yourself, even by phone, to ensure that this information is actually being requested by them. Better safe than sorry.

Remember when the Social Security Administration was first established, and many Americans were afraid that sensitive information would be used and abused by others? The Social Security Administration assured everyone that the numbers would only be used by the Social Security Administration, and no one else. In fact, back then it was illegal for anyone else to use them. Now you can't open a bank account or board a plane without disclosing your SS#. Actually, I don't remember that far back either. That was in the 30's. How old do you think I am?

Unknown · February 20, 2013 2:58AM

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lkeigwin · February 20, 2013 3:25AM

<< 

<< The 1099s get triggered after 200 transactions or $20,000. in sales. >>

Not exactly correct...it's a combination of both & not just one. >>

Correct. And it's the sum of all PayPal accounts using that social security number.

Even though I sold only $8k in coins during 2012, with only a few dozen transactions, I got a 1099 for it because my business PayPal account was in excess of 200 transactions and $20k in sales. I.e., I received two 1099's, one for each PayPal account.
Lance.

steelielee · February 20, 2013 3:51AM

<< More experienced eBay sellers than I have offered some very good advice and answers here, but I would add one little additional piece of advice that seems to have been overlooked. Just make sure that whomever you furnish your Social Security number to is actually Paypal, and not some other entity or hacker who has hijacked your account. It could be a phishing attempt to steal your identity and information. Make certain that you are on a secure website (https) whenever you share such sensitive information, and maybe even contact Paypal directly yourself, even by phone, to ensure that this information is actually being requested by them. Better safe than sorry.

Remember when the Social Security Administration was first established, and many Americans were afraid that sensitive information would be used and abused by others? The Social Security Administration assured everyone that the numbers would only be used by the Social Security Administration, and no one else. In fact, back then it was illegal for anyone else to use them. Now you can't open a bank account or board a plane without disclosing your SS#. Actually, I don't remember that far back either. That was in the 30's. How old do you think I am? >>

Good advice, thanks for bringing that up....not sure I want to divulge my SS number to anyone online.

BAJJERFAN · February 20, 2013 3:53AM

<< Why are you adding $ to your PP account. Do you not have a credit card connected to the account? >>

Can you even add $$ from your CC to your PP account? I would think there might be a fee if one could do that.

Jobessi · February 20, 2013 4:07AM

I came in just under by $300...I hope my math is correct!

BAJJERFAN · February 20, 2013 4:11AM

<< 

<< 

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

and should be.

If everyone was honest enough to actually report ajj earnings rather than simply submitting W-2s then 3rd party reporting wouldn't be necessary. That ain't gonna happen. >>

Just because somebody sends me $1000 via paypal does not mean that $1000 is INCOME. What if the item I sold for $1000 on ebay cost me $1200 6 months ago ?
Am I now allowed to deduct the $200 loss on my tax return since my income from the transaction is ZERO and I lost $200 ?

There is really only one reason ............. PLUNDER. >>

The $1000 is accurately reported as income. Cost of merchandise [if you've kept records] plus other legitimate business expenses are deducted to give you a net taxable income. Presumably, you've had other sales besides the one that lost money.

BAJJERFAN · February 20, 2013 4:16AM

<< 

NOTE CAREFULLY!!! I AM NOT A CPA OR OTHER TAX EXPERT.

But, if that is your only transaction of the year, then yes, TTBOMK, it would be deductable as a short term capital loss.

Yes, you are right. The only reason that a person would not declare all such transactions is plunder--HIS. >>

IIRC on a hobby basis, you can't claim a net loss. You can use losses to offset gains, but you can't claim a net loss. Of course net gains are reportable/taxable

TwoSides2aCoin · February 20, 2013 4:17AM

We COA
They CTA
I CMA
You CYA

BAJJERFAN · February 20, 2013 4:58AM

<< We COA
They CTA
I CMA
You CYA >>

anna wunnerful time was had by all.

johnny9434 · February 20, 2013 5:26AM

<< 'cuz they have to report to the IRS sales (income) of over 20k

...and I will bet that soon ALL income will be reported >>

its coming, give it a short time.

Unknown · February 20, 2013 7:41AM

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Unknown · February 20, 2013 8:03AM

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Amigo · February 20, 2013 8:41AM

IIRC on a hobby basis, you can't claim a net loss. You can use losses to offset gains, but you can't claim a net loss. Of course net gains are reportable/taxable

I believe you are Correct.

My Son is a CPA, but in the middle of tax season he's not going to give me the time of day to confirm it, lol.

BAJJERFAN · February 20, 2013 8:47AM

<< IIRC on a hobby basis, you can't claim a net loss. You can use losses to offset gains, but you can't claim a net loss. Of course net gains are reportable/taxable

I believe you are Correct.

My Son is a CPA, but in the middle of tax season he's not going to give me the time of day to confirm it, lol. >>

It has been mentioned here several times in the past. I believe that from a hobby standpoint, there are probably restrictions on the types of expenses that one can deduct.

derryb · February 20, 2013 9:14AM

Paypal is a payment processor and falls under the recent IRS 1099K reporting requirements. Providing them a SSN in order for them to comply is no different than providing the SSN to your employer when you fill out the required tax withholding form. Google 1099K for more info.

Coin profits can be reported on either IRS schedule C or schedule D. Depends on whether one considers themselves a business or an investor. Different rules for determining Net profit for each form, check IRS website instructions for both forms to make your decision. Business filers also pay additional self-employment tax when they file. Investors have less claimable expenses at their disposal. Pros and cons with each method.

nickel · February 20, 2013 11:28AM

""""I went to add some $ to my PP account this AM and it won't let me add money until I complete my SS or tax ID number""""

I am with the original poster . Seems most missed his opening statement .
I wanted to buy an item . Went to transfer money from my bank to my PP account .
PP would not let me do so , until I feed them my SS or TIN number . I am not selling .
I am buying ! What's their problem?

derryb · February 20, 2013 12:21PM

<< """"I went to add some $ to my PP account this AM and it won't let me add money until I complete my SS or tax ID number""""

I am with the original poster . Seems most missed his opening statement .
I wanted to buy an item . Went to transfer money from my bank to my PP account .
PP would not let me do so , until I feed them my SS or TIN number . I am not selling .
I am buying ! What's their problem? >>

All ebay accounts can be used to buy and to sell. Paypal is positioning itself to be able to meet IRS reporting requirements will all accounts.

notwilight · February 20, 2013 12:28PM

<< Apparently you breached the Min required to meet reporting requirements.

People might as well face up and realize if they are going to do biz, they need to report their fair share.

On CC machine's there is no min, the banks automatically report all transaction amounts in a monthly breakdown via 1099-K.

I suspect pay-pal will be required (forced) to do the same here shortly. >>

What about selling kids used toys and clothes, golf clubs, etc? If they want to report that to the IRS do I get to write it off against my original cost (about 80% loss I would guess?). Of course not. But I'll have to explain.

Last year I opened a separate account to sell these things and it apparently worked. I got a 1099 for my coin sales (I have no problem with that at all) and nothing on the other account. but I'm afraid I'll hit some limit and have to justify not paying taxes on my other account which will be a PITA.

--Jerry

So why does paypal want my SS Number?

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