2. misc-audio
  3. 163567-94588

1099-K from PayPal (tax form)

It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.

I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
128x128thyname

Showing 2 responses by rushfan71

rushfan71
291 posts
 
@audio2design
Let me rephrase that as "income range"

rushfan71
291 posts
 
I'm glad someone brought this up.
PayPal did this to me this and last year.

Can someone explain to me how it is legal to tax me for selling a product that I previously purchased new, and paid sales tax on, with money I was already taxed on when I earned it?

Last year they added what I sold off to my income which put me in the next tax bracket and I got hardly any tax return.

Better yet, can someone tell me an alternative for payment that we can trust and that won't rob us like this?
More to discover