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Paypal 20k Limit
 

I have browsed through many Paypal forums and have heard about a 20k limit that you cannot cross but never an explanation on what will happen if you do. I am close to the 20k limit on one paypal that I have had for 2 years now and everything with the account is going perfect with it and I do NOT want to get rid of it and want to know if I should just ride it out with this paypal? Just wanted to see if I needed to watch out for anything or dump it when its getting close, thank you guys!

More info on account
*Had for 2 years
*Nothing is real info
*Not on VPN
*over 200 transactions (Way over)
*asked for SSN/EIN and I imputed a not real EIN and has never asked
for anything ever again
*Have backup Paypals if needed

Re: Paypal 20k Limit
 

20k per year, if you had that PP for 2 years, 20k / 2yrs. = 10k still, u got more free space..

Re: Paypal 20k Limit
 

Ok thank you! I didn't know it was by years, does it go by a calendar year of making 20k or within any 12 months worth of time making 20k?

Re: Paypal 20k Limit
 

If you have a fa/ke EIN on file and you've passed 200 sales AND $20,000 in 2016 then your account will be dead by the end of 2017. If you ever pass both thresholds, for the life of this account, it will be dead the next year.

If you ever pass $20,000 and 200 sales Paypal will attempt to submit a 1099 for your made up tax ID. Then the IRS would notify Paypal the Tax ID doesn't exist and your account would be limited.

Note: post has been modified to remove erroneous information. Thanks bjammin.

Re: Paypal 20k Limit
 

That is something that is commonly mistaken.
To be 1099'ed and reported to the IRS, you must have 200 transactions AND $20k in sales within 1 calendar year (Jan 1st-Dec 31st).
Paypal will ask for tax info once you are getting close to either 200 sales or 20k, but you do not get reported until you have actually achieved both.

But once you do cross both thresholds and you are 1099'ed then eventually your paypal will get limited if you have used a fa/ke EIN or any other type of fa/ke tax id number.

Re: Paypal 20k Limit
 

My bad, Bjammin is correct. I've corrected members on that same point - slipped my mind this time. You've got to cross both thresholds in order for Paypal to submit a 1099 on your behalf.

Still though I recommend you check your account to see if any tax documents were created for 2016. And I would get out of the habit of providing made up Tax ID's as doing so constitutes tax fraud.

Re: Paypal 20k Limit
 

Thanks for the good info!:clap:

In regards for both thresholds? I have 16k monthly funds release limit... Will 200transactions apply in this sense? I'm using EBay for transaction inquirus

Re: Paypal 20k Limit
 

So lets say hypothetically they ask for tax info at around $15k in sales and you don't give them anything. And then make only $19k by January first. Does the whole "Please provide tax info" thing disappear and you're good to start selling again?

Re: Paypal 20k Limit
 

Stop making it complicated, make more accounts and problem solved.

Re: Paypal 20k Limit
 

Release limits don't matter to the 200/20K issue.

It's per calendar year, not divided across two years as someone said.