Paypal Changes for 2022

I had to deal with PayPal reporting for all these years Trump was in power. And those “territories” I outlined above are mostly run from Republican governors. Mississippi, Arkansas, Missouri, Maryland, and now Virginia. Unless the crazies meant leaving US when saying “territories”. If so, where would you go? Canada? Europe? Or North Korea? And the new rules were set while Trump was in power. So much for draining the swamp. Nothing really happened in those four years.

It's not crazies @thyname , it's people pointing out the obvious. It isn't enough that you pay not only income tax, property tax, sales tax, gas tax. tons of hidden taxes, death tax. That isn't enough to satisfy the all consuming behemoth of government. Banking institutions are warning their clients the Biden admin is intent on having them report any transaction over $600.This will force them to hire more people and it will enlarge another Federal bureaucracy. The current reporting amount is 10k and it was instituted to help curb organized crime. The people who will be hurt most as always are the poor who will have a harder time making itemized deductions and end up just handing over more and more of their money.

🤦‍♂️

As always, not just audio, crazies take over / hijack all discussions

Got it.  It looks like we have to file a schedule C to list cost of goods sold and can write off travel expense, packing materials, etc.  Seems like a real pain, but the only way to keep from paying tax on the total amount listed on the 1099. 

Unfortunately there is no way out. You have to keep track of everything and report everything. I had a thread running in here last year: 

So, what's the solution?  Do we have to keep track of what we paid for an item vs. what we sold it for or won't that matter?  If you sell $5,000 worth of equipment this year, you'll get a 1099-K for $5,000 for additional income?

Some of us unfortunate to live in a few select states were already subject to the dreaded PayPal 1099-k tax forms: HERE

Copy / paste:

Several states have already closed this reporting loophole on the state level:

• Maryland, Massachusetts, Mississippi, Vermont, and Virginia require a 1099-K to be filed with the state tax agency if a TPSO pays a state resident $600 or more during the year.
• Illinois and New Jersey have a $1,000 1099-K threshold (plus, for Illinois, a requirement of at least four transactions).
• Arkansas has a $2,500 threshold.
• Missouri has a $1,200 threshold.

You only need 1 post!!!

Will never use PayPal as its a big ripoff also Zelle and the other turkey Venmo.

If you own your own business or have a side hustle and get paid through digital apps like PayPal, Zelle, Cash App or Venmo, earnings over $600 will now be reported to the IRS. A provision from the 2021 American Rescue Plan, which went into effect on Jan. 1, directs third-party payment processors to report transactions received for goods or services totaling over $600 per year to the IRS. 

Prior to this legislation, a third-party payment platform would only report to the tax agency if a user had more than 200 commercial transactions and made more than $20,000 in payments over the course of a year. 

The key thing to know right now is that it doesn't apply to your 2021 tax return, which you'll file this tax season. But it will apply to the earnings you make throughout 2022, which you'll report when you file in 2023. 

I believe this is $600 total for the year, not just transactions that each total $600 or more?