got my PayPal 1099 /// what now?

I should think you can simply enter any numbers that make sense to you on your return.  Proof will only be an issue in the event of an audit.  I suspect the chance of an audit for the sale of some audio equipment is slim to nil, and slim doesn't live here anymore.  

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