As a key rule you should be reporting your income as a whole, this means all accts from where ever combine! You need to pay your taxes! but by spreading out your sales below the threshold on each one should avoid the need for SS#
from last i read here on the forums is that if you are trending to 20K for paypal they will send you a notice. $1,666.66 x 12 - stay below this. This will be for all payment processors
From Paypal's blog regarding the new bill and law:
https://www.thepaypalblog.com/2008/0...ts-become-law/
Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:
1. receive more than $20,000 in payment volume in a single year; and
2. receive more than 200 payments in a single year.
This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012. Our goal when the legislation takes effect is to make it easy for PayPal merchants who fall under the provision to report their taxable incomes.
In response to some of the questions below about business expenses (such as shipping, insurance, etc.), it is very important to point out that the figure PayPal will report to the IRS is only the total payment volume received by your business. Because of business expenses and other reasons, this figure may not match the yearly revenue or income figures that you report to the IRS in your tax forms. We encourage all of you to consult with your tax advisor when this law takes effect to ensure that you are complying with federal tax laws.
Some recent comments from this blog on this topic:
your not getting taxed on the 20k you make as if it was income, you run a busniness and have expenses and cost of product if your net is only 5k then thats all you get taxed on
December 11, 2010 at 11:49 am
You can still deduct shipping, and other expenses as others have said. The new form, I believe is called a 1099-k for merchant and third party services, you will find a place on your schedule C starting with the 2011 reporting year to input the figures reported on this document. From there just move forward and make your deductions as you normally would. I hope this helps.