got my PayPal 1099 /// what now?

Pretty sure receipts are not necessary unless audited.

Otherwise I have been prepared for this day by tracking every purchase and sale for the last 5 years. I keep every Paypal receipt, every shipping receipt, photos, every posting I sold or bought from, and every email exchange with the seller or buyer. All are filed as PDF’s and tracked in an excel spreadsheet so I can know how much I made or lost on each item. Typically lose thousands every year on the total amounts while some items may be "profitable", overall I am a loser! But prepared for an audit.

Some have questioned whether I actually have owned as many cables I have stated, and yes, I can prove every purchase and every sale.

Let’s see how much Friends and Family saves us from reporting. What is the 2024 number, $600 again?

I just got the PayPal 1099K. Do I have to enter the amount somewhere on my Tax returns? Hard to believe that selling used items will ever end up in a profit. But hey it's the Fed Government, no rational needed I suppose.

Or do I just have to be prepared in case I am audited?

ozzy

Looks like the threshold for 2024 is $5000.

@herman  Did Paypal itemize the transactions for you or just give you a totaled number and you have to figure out which items add into that total?

PayPal gave a month by month $ amount. It is gonna be hard to reconcile.  But I will.

ozzy

I'm very curious if "General Payment" which should be Friends and Family according to my records (dates and amounts) will be ignored as income.

I see some of my monies received labeled as Mobile Payments which were supposed to F&F may count against the income side. I'll have to be specific going forward to not allow the mobile app to be used if that turns out to be the case.

I've downloaded all the monthly PP statements and did a quick scan against my spreadsheet. Waiting to see what I get. I'm on the cusp of escaping if the F&F works out. Regardless, I have all the data and evidence. Not looking forward to filling out Turbotax forms.