got my PayPal 1099 /// what now?

I’m definitely getting hit by this becasue I’m well over the $5K threshold. I should go check PayPal for the forms.

Playing with crypto in 2020 was kind of a nightmare for taxes - LOTS of transactions, short term vs long term gains etc. I learned the little bit of accounting necessary, chose the basis (FIFO, HIFO etc) and wrote my own code to compile the results which I fed into TurboTax. Also had my code generate the IRS forms but didn’t end up needing them - TurboTax has its own inputs for that. Carried the accounting forward the next 3 years, and now I’m finally done with that mess. I was quite proud of it anyways, haha.

At least I’m sure this should be a lot simpler. Everything was a loss (of course), and I just need to track down the "close enough" original payments for cost basis. I assume TurboTax will have another input form for this that makes it relatively simple - we’ll see.

IRS has a $5000.00 threshold for the 2024 tax year.

Oh boy I hope I am not screwed. I filed my 2024 Taxes one day before receiving the PayPal 1099K, I really was not expecting any form. So the PayPal amount was never listed on my return.

I thought all I had to do was gather my information in case I was audited. But now I notice the PayPal 1099K amount needed to be listed on the Tax form.

I already filed and it has been accepted by the Fed. When I now throw that amount in it decreases my refund. However, there is a line that can counter that amount to zero.

But as I said I have already filed.

ozzy

@ozzy A copy of the 1099 goes to the IRS.  I would file an amended return, othersize the IRS will have $7k of unresolved income and you will get a letter.  Jerry

I agree. I'm trying to figure out how to do that with Turbo Tax.

ozzy