Paypal drastic changes
When you’re paid for goods and services, the US Internal Revenue Service (IRS) considers this reportable income.
Once you receive $600 in payments for goods and services within a calendar year, tax laws require us to withhold 24% of such payments when you have not confirmed your taxpayer status by either providing your US tax ID or completing a Certificate of Foreign Status. This 24% is sent to the IRS as backup withholding for any potential income tax due on those payments.
You can learn more about this tax law on the IRS website.
I tried to attach a link , but it wouldn't cooperate.
@carlsbad2 …thereby further complicating our tax return process. Especially for those who do several PP, Venmo or other transactions in a year. Better save lots of receipts for many many years fellas. We’re from the IRS and we’re here to help. I suspect the F&F loophole will get closed post haste. |
