Received a 1099-k here as well. Absolutely nowhere near 20k in sales. A lot of purchases were made. Politicians are always trying to stick their hand in your pocket.
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?
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?
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- 49 posts total
Ah!! I figured out why I received this tax form although I was far from meeting IRS threshold in transaction numbers: https://www.paypal.com/us/smarthelp/article/i-live-in-vermont-or-massachusetts,-what-are-the-form-10... I live in one of these states. ———— Why did I receive a 1099-K if I didn’t meet the IRS reporting threshold? Some states (VT, MA, VA, IL, MD) have reporting obligations at a threshold lower than the federal reporting thresholds:
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Great answers here and I have nothing to add but KEEP ALL RECEIPTS! eBay became a contracted tax collector last year. Not by their choice but the states that want that extra tax money in their coffers. What I still fail to grasp is that tax has already been paid on any used item you sell. Unless you make a profit, only the profit amount should be taxed. This amounts to tax on tax in my mind. Can anyone explain it better to me? AB |
The simple solution is to move out of the "there's no such thing as too much tax" socialist state you're in and move to one of the no income tax states where the inmates aren't in charge of the asylum. That's my political opinion as an audiophile. Seriously, if you can't neutralize the 1099 in Turbo Tax Deluxe, a competent tax preparer (local CPA firm that prepares taxes, not the the H&R Block types) can solve your problem in about 15 minutes. |
- 49 posts total