New PayPal BS?

[cali_hornhunter]

Ya im new to selling and I just had to do all kinds of crazy things like upload my ID and talk all about the history of the transaction before i can get my funds but if F&F can get around that…worth the risk I guess. This process made me rethink buying and selling just cause its kinda a pain to do it

 

[Mike 338]

Froze your money for any reason. Sounds like you have a decision to make.

 

[tony]

I got a message from PP wanting my “tax number” - SS number or they would take 20 some percent of my future incoming money. For you know, taxes.

Been using Zelle lately, goes right into your account. No idea how they are making money or if the government has got thier screws in them yet. But it’s a nice option.

I’ve said it a million times. If you use PP regular, open an account just for it. And empty it regular. That way PP can’t get into your daily money.

 

[fwafwow]

That right there goes beyond my acceptance level.

My strong suspicion is that this language is in reference to AML/KYC policies.

I was under the impression that the tax also applies to the FF method of payment. Is that not correct?

Not correct. FF exempt from reporting

FF exempt from the 1099-K rule. You could still have taxable income - but not receive a tax form.

 

[BDRam16]

A lot of guys here need their tinfoil hats back. You don’t pay taxes on selling personal items for a loss. Period. Even if they 1099 you don’t claim it as income because it isn’t. People freaking out over the $600 1099 for nothing. If you aren’t selling for a profit, than it does not affect you.

 

[ScreamingPotato]

A lot of guys here need their tinfoil hats back. You don’t pay taxes on selling personal items for a loss. Period. Even if they 1099 you don’t claim it as income because it isn’t. People freaking out over the $600 1099 for nothing. If you aren’t selling for a profit, than it does not affect you.

If they report 1099 income to the IRS and you don't, doesn't that increase audit odds? Everyone knows you don't owe it, think most don't like the hassle of having to deal with it.

 

[BDRam16]

If they report 1099 income to the IRS and you don't, doesn't that increase audit odds? Everyone knows you don't owe it, think most don't like the hassle of having to deal with it.

Not if you do your taxes correctly. Luckily, I have a great accountant (mom lol) and I’ve never had an issue with it.

My comment is more geared towards the people treating it like PayPal is somehow now invading their privacy because the liberals passed the ARP changing the law. Be mad at Washington, not PayPal.

 

[BDRam16]

This video is like watching paint dry but it very clearly walks through how to separate your items on a tax form showing your loss and that it is non-taxable.

 

[ResearchinStuff]

Lol. I got audited because a bank reported the $50 they gave my wife for opening a checking account to the irs but they didn't send me a 1099, so I didn't know to report it. That was before the irs started adding employees specifically to do more audits.

Good luck to you all if you think not claiming any amount of income that goes on a 1099 is going to work out just fine for you. It might in the end, but there's going to be pain along the way.

 

[fwafwow]

I agree the worry is overblown. If you get a 1099 handle it on your return and you should be fine. If you get a 1099 and choose not to address it, then you may not be fine.

But I think the message to the OP in this thread is unrelated to taxes. They want to make sure he’s not a money launderer or terrorist.

 

[BDRam16]

Lol. I got audited because a bank reported the $50 they gave my wife for opening a checking account to the irs but they didn't send me a 1099, so I didn't know to report it. That was before the irs started adding employees specifically to do more audits.

Good luck to you all if you think not claiming any amount of income that goes on a 1099 is going to work out just fine for you. It might in the end, but there's going to be pain along the way.

Did they send you a 1099K specifically? Because the K form is from online commerce specifically. There is a way (see the video I posted above) that very clearly walks you through how to correctly file this form showing your personal property for a loss so that it zeroes out and does not accrue further taxes.

Also, the IRS phased back the threshold so 2023 is still $20,000 and 2024 might be $5000.

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation | Internal Revenue Service

IR-2023-221, Nov. 21, 2023 — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement...

www.irs.gov

 

[5MilesBack]

My comment is more geared towards the people treating it like PayPal is somehow now invading their privacy because the liberals passed the ARP changing the law. Be mad at Washington, not PayPal.

They are invading privacy......and they're all in it together. Of course Washington is the problem, PP is just one of the lackey's that execute that invasion of privacy.

 

[ResearchinStuff]

Did they send you a 1099K specifically? Because the K form is from online commerce specifically. There is a way (see the video I posted above) that very clearly walks you through how to correctly file this form showing your personal property for a loss so that it zeroes out and does not accrue further taxes.

Also, the IRS phased back the threshold so 2023 is still $20,000 and 2024 might be $5000.

IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation | Internal Revenue Service

IR-2023-221, Nov. 21, 2023 — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement...

www.irs.gov

they sent me nothing.

 

[BDRam16]

They are invading privacy......and they're all in it together. Of course Washington is the problem, PP is just one of the lackey's that execute that invasion of privacy.

Why would PayPal “be in it” when the concept of them having to now 1099k $600 is making people stop using their business? Believe me…I don’t like the government intrusion either. But none of this would be happening if Biden’s Rescue Plan didn’t change the tax laws.

 

[5MilesBack]

Why would PayPal “be in it”

Holding our money until they fully understand who we are, what we do, how we sell, how we buy, etc etc........I would say they're well into it.

 

[*zap*]

business working hand in hand with government is a bad deal....but not among our worst problems.
Texas did set back blackrock a little bit today thou.

 

[fwafwow]

business working hand in hand with government is a bad deal....but not among our worst problems.
Texas did set back blackrock a little bit today thou.

I suspect that at least some of these businesses aren’t doing it other than under duress.

 

[*zap*]

I bet the government gives tax 'incentives'.

 

[Maidenfan539]

And yet meth dealers and users round the US use cashApp, Walmart to Walmart, PayPal, zelle ect for drug related transactions....where are the 1099's with them. Haha.
But we fine upstanding citizens get the short end every time.

 

[BDRam16]

Holding our money until they fully understand who we are, what we do, how we sell, how we buy, etc etc........I would say they're well into it.

That’s fair. But also to be fair, this came about because of people doing actual business transactions without claiming it as income like all the craft mommies at the farmer’s market and people doing $19,900 on eBay before setting up a new account.

Also, the OP got his money almost immediately so it seems like once PayPal was aware that he wasn’t a business it wasn’t an issue.

But like always, those of us who do follow the law get punished because of people who broke it.