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  #1  
Old 11-01-2019
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Default Help with taxes US

Hi,
I want to learn something about taxes in US. I'm US resident and have a paypal business account. I know there are two thresholds before paying taxes ($20k and 200 transactions)

Before reach to $20k, will there any tax request from IRS about my money transfers from PayPal to my bank account?
I just moved to USA and I don't want to get into trouble with taxes. I want to do everything properly.

Thank you in advance
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Old 11-01-2019
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Default Re: Help with taxes US

Better speak to a financial professional in your area since, while there are posts about this for you to read and discuss, financial advice is not in the scope of the forum
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Old 11-01-2019
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Default Re: Help with taxes US

Quote:
Originally Posted by ecoco View Post
Before reach to $20k, will there any tax request from IRS about my money transfers from PayPal to my bank account?
No.

Under $20k = hobby.
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Old 11-01-2019
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Default Re: Help with taxes US

Quote:
Originally Posted by rsot View Post
Better speak to a financial professional in your area since, while there are posts about this for you to read and discuss, financial advice is not in the scope of the forum
Thanks for your answer. I'm not looking for a financial advice actually, I wanna hear some experience from people about that.
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Old 11-01-2019
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Default Re: Help with taxes US

PP will send you the tax form that you'll have to return to them basically.

So don't hit that limit and use multiple accounts
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Old 11-01-2019
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Default Re: Help with taxes US

PAYPAL will issue you a 1099K once you reach $20,000 AND 200 transactions.
Paypment received under goods and services ,not payment under friend and family.
The amount on your 1099k is gross,it does not exclude sales tax and refund,so you have to deduct them to come up with the net.
1099 is sent in January,one comes to you,one goes to IRS.
you can consult a tax accountant .
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Default Re: Help with taxes US

You should also research on your state sales tax and income tax reporting
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Old 12-23-2020
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Unhappy Re: Help with taxes US

Quote:
Originally Posted by phaz0rz View Post
No.

Under $20k = hobby.
I know I am late but letís say I made around $15k... I have to pay taxes on that, right? PayPal wonít report to the IRS but what about my bank?

Can't the IRS see all my statements.. ? Won't they question where I got that money from?

Thank you!
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Old 12-23-2020
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Default Re: Help with taxes US

Quote:
Originally Posted by dick View Post
I know I am late but letís say I made around $15k... I have to pay taxes on that, right? PayPal wonít report to the IRS but what about my bank?

Can't the IRS see all my statements.. ? Won't they question where I got that money from?

Thank you!
no, as long as you're not doing anything for them to check it, they won't.
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Old 12-23-2020
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Default Re: Help with taxes US

Quote:
Originally Posted by dick View Post
I know I am late but letís say I made around $15k... I have to pay taxes on that, right? PayPal wonít report to the IRS but what about my bank?

Can't the IRS see all my statements.. ? Won't they question where I got that money from?

Thank you!
I'd still pay taxes on it because eventually it'll catch on.
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  #11  
Old 12-23-2020
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Default Re: Help with taxes US

when you file y our income tax return,you can report your business either as a one liner like misc income or use the schedule for small business.
You can go to IRS SITE and download copies .
as for bank statements,if you are ever audited by IRS or the state,they would ask to see your bank statements going back to prior years,the purpose is to find out if you have undereported your income,any incoming transactions to your bank account ,if not inheritance,tax refund,insurance claims ,SS payments or bank to bank transfer would be considered as income
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Old 12-23-2020
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Default Re: Help with taxes US

Paypal keeps 7 years of our activities ,if a payment is from a sale ,itwould show the item description,sales amount,shipping,sales tax collected ,name and address of the customer,you can download .
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Old 12-24-2020
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Default Re: Help with taxes US

You don't get deducted taxes or anything at PoS but if you're operating off huge figures (50k+) you could get IRS attention
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Old 07-03-2021
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Default Re: Help with taxes US

To be clear, you guys are paying taxes on a 1099 issued in someone else's name on PayPal or eBay MP?

additionally I'm not questioning the validity as I was searching this forum to find if that was possible.
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  #15  
Old 07-05-2021
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Default Re: Help with taxes US

Quote:
Originally Posted by Oldie View Post
To be clear, you guys are paying taxes on a 1099 issued in someone else's name on PayPal or eBay MP?

additionally I'm not questioning the validity as I was searching this forum to find if that was possible.
Old thread. Make a new one please.
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