Source
r/tax•
scarabcoder

Does PayPal report anything to the IRS if I don't meet the PayPal criteria for 1099-K?

Unsolved

Hi,

I work as an independent contractor, and I do all my billing through PayPal. According to PayPal's website:

PayPal will track the payment volume of your account to check whether your payment volume exceeds both of these levels in a calendar year:

- $20,000 USD in gross payment volume from sales of goods or services in a single calendar year

- 200 payments for goods or services in the same year

I met the first criteria (over $20,000 USD) but not the second criteria (200 individual payments). PayPal has not generated any tax documents for me.

I'm doing my reporting through TurboTax, and it's asking about what type of income. I have not received any tax documents from anyone, either from my clients or from PayPal. What "type" of income would I enter, "Other self-employed income" and just write "cash" for the type, then enter the total amount I've made from PayPal payments?

This is my first year doing taxes, and all of my income comes from being an independent contractor. Any help would be appreciated!

Posted Feb 2, 2021, 8:47 PM UTC

34
SnownelTax Attorney - NY/NJ•

Yes. It doesn't really matter, as long as it's reported somehow on Schedules C & SE.

1
scarabcoderOPTaxpayer - US - CAL•

Good to hear, thanks.

1
2nd_from_LastTax Preparer - US•

You'd report the revenue on Schedule C, (assuming you're a sole prop), along with whatever expenses you are claiming. If you get a 1099-K, you'd enter that info and direct that towards the schedule C as business income. (I don't use TurboTax, but I'm assuming it should work that way). Ask a rep from Paypal about your 1099-K.

1
scarabcoderOPTaxpayer - US - CAL•

Alright. I'll review the documents Turbotax generates to verify that it is being included correctly. I think it's just the way Turbotax presents it that's confusing me.

1