got my PayPal 1099 /// what now?

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

I found the IRS guidance on how to file this 1099-K.  Looks like there is a spot for it on form 1040.  And if you took a loss, you don't get to write it off.  As we thought. 

https://www.irs.gov/businesses/what-to-do-with-form-1099-k#:~:text=On%20Schedule%201%20(Form%201040)%3A,Sold%20at%20a%20Loss%20%2421%2C000%22

You got to love how this works. This is like triple dipping for the IRS. 

So I buy something with my after tax money. 

The item I buy, has tax on it that I have to pay. 

So I've already paid a lot of tax on this purchase technically. Now when I go to sell it, I'm getting taxed again if it's over a certain threshold. Even if I am selling it at a loss, the government still wants to tax me for the item that was already mine that I paid taxes on that I paid with money that had been taxed already. 

That whole lot of taxes. 

Then I will buy something else that I will have to pay taxes on also. 

The IRS is a government-funded program that is paid for by my taxes. To make sure I pay my fair share of taxes. ....