Paypal Changes for 2022


If I understand this correctly, Paypal, along with all on-line payment sources like Venmo, etc. will now be sending out 1099 forms for all payments totaling $600 you receive in 2022 for goods or services.  The only way around this is to use Paypal friends and family for payment which eliminates any buyer protections.  Is everyone aware of this?

 

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@grannyring I certainly respect your position. I don't sell much anymore but curious what alternative payments you would take that wouldn't generate a 1099? I assume most Paypal, Venmo, Zelle, would does that mean we're back to waiting for checks to clear. That's how we did it here back in the 90s. 😁

@8thnote , Lots of folks don’t accept PayPal that are great sellers. Its becoming more “normal”. Look at the feedback first. However, I hope you are right about the other stuff in your post! Good post.

 

@jond, you are correct. Wait for a check to clear or bank transfer. I like bank transfers. Only deal with proven sellers however.

@8th-note : They do get itemized. I received already a PayPal 1099-k for 2020 last year. I am in one of those 9 states I mentioned above (see reference below) that already had and have the PayPal reporting requirements for much lower amounts. The 1099-k form had each transaction listed separately with dollar amount and date of transaction.

Are you saying we just ignore the form if we know we did not make any profit?

Say for example, I sold something for $1,000, that I bought a few years back for $2,000. Clearly a loss. It’s reported in that 1099-K form that also gets sent to IRS. What do I do with the form? Do I ignore it? Or do I have to report it in my return, and if so, how? Which schedule? Again, not a business, just an audio enthusiast upgrading.

 

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  • Maryland, Massachusetts, Mississippi, Vermont, and Virginia require a 1099-K to be filed 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.