PayPal (etc) and the $600 Rule

[zeebaron]

So make sure and pull an EIN (it's free) and now all of your purchases are deductible because you might sell them some day and it will be considered income.

This sword cuts both ways.

I totally agree. Now that everyone is forced to do the paperwork now, might as well be in your benefit.

[Firemedic2000]

Has any of these sites asked for a SSN or EIN number yet

[philasteen]

This only applies to payments for "Goods & Services", not for "Friends & Family".

I have seen several online articles explaining that Zelle is different from PayPal and Venmo, in that Zelle doesn't actually handle the funds. Instead, they facilitate the transfer between other financial institutions. Therefore, Zelle will not be reporting your transactions on a 1099.

Great tip, thanks.

=====================

Does Zelle® report how much money I receive to the IRS?

Zelle® does not report transactions made on the Zelle Network® to the IRS. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle Network®.

https://www.zellepay.com/faq/does-zelle ... eceive-irs

[Flame Red]

Has any of these sites asked for a SSN or EIN number yet

FleaBay REQUIRED it or they would NOT GIVE ME MY $ FROM MY SALES. But they sure took their cut for fees before I complied!

[zeebaron]

SSN/EIN has been required to accept credit card payments, sign up for PayPal, etc. since the 1099-K came into effect in 2012.

https://en.wikipedia.org/wiki/Form_1099-K

[lilwoody]

The threshold for a 1099k is still 20k, not 600. The bill that nonsense was in (Build Back Better) did not pass. The problem is the feds were so certian it would pass they jumped the gun and told all the major players in it they were going to have to do it. Because of the idiotic way things go or these companies are such bootlickers they are still keeping it alive through outright lies. Send the forms out and see who sends them in. Basically they are throwing shit against the wall and see what sticks.

[zeebaron]

The threshold for a 1099k is still 20k, not 600.

https://www.irs.gov/businesses/understa ... orm-1099-k

[lilwoody]

Well I do stand corrected. I suppose i mistook the 600$ reporting in the BBB debacle to this debacle. Then again we are living through a debacle. Let's go Brandon!

[zeebaron]

Well I do stand corrected. I suppose i mistook the 600$ reporting in the BBB debacle to this debacle. Then again we are living through a debacle. Let's go Brandon!

I was hoping it was going to get dropped at the last second from the bill, but nope! I know a lot of people quit selling online this January because of it. As long as you didn't hit that $20k/200 limit, nothing was reported to the IRS. Extra income for seniors on Social Security, etc,

[neverenoughguns]

Kinda takes the fun out of selling stuff on eBay. Did pretty well for a few years but guess that is over.