Does PayPal require you to give SSN/EIN when passing $20k

[phaz0rz]

1) Yes (at least in my opinion)
2) Yes
3) NO, you use your information. 1099k is just a reporting tool to help you with accounting. All business income goes on a schedule C on your personal tax return

4) No.. those would probably be linked. Definitely better to use fresh info on each account if you're doing stealth.

[yankee]

Originally Posted by Shadyhero1002

And is that a stealth account your using or one with your real information?

Both.

If you are using a new stealth account.... I would use caution hammering heavy funds at first. That being said, if your first transactions are large, pass the holds, etc.... it will be a normal transaction and all should be good.

[BleepBloop]

Got news for ya'll...

Starting 2022, the IRS changed the 1099K threshold and lowered it to $600 even on a single transaction for ALL STATES! LMAO as part of the recent Stimulus bill Biden signed into law. Smh.

[phaz0rz]

Source?

Somebody in the chatbox said the same thing a few days ago, then they said nevermind because that part had been removed from the bill before it made it through the senate.

I googled and I can't find anything about a new reporting threshold.

[BleepBloop]

(not a PayPal link)

https://www.ecommercebytes.com/C/abb...615153514.html

But if it was removed (really? shocked!)...still keep ya's eyes open.

[bytor3k]

According to this link it was left in.

https://www.doctorofcredit.com/stimu...99-k-tax-form/

Here's the text of section 9674 of bill H.R.1319

https://www.congress.gov/bill/117th-...89C5F9A98A4109

[lj23]

Originally Posted by BleepBloop

Got news for ya'll...

Starting 2022, the IRS changed the 1099K threshold and lowered it to $600 even on a single transaction for ALL STATES! LMAO as part of the recent Stimulus bill Biden signed into law. Smh.

Lots of casual and part time sellers will be in for a rude awakening, the way they snuck this into the recent recovery bill was head scratching. I thought the previous requirements of 200 transactions was bad because big ticket item sellers could make six figures and not get a 1099K as long as they kept transactions below 200 but now they went too way low with simply $600 to trigger a 1009K probably will spell the end of most small sellers online.

[SaiJin]

I don't understand every time there's something new or changes or tighter rules, people always say "It's the end of this and that" .

Seriously at the end of the day EVERYONE will do anything to survive.
They won't just flop over like a dead fish.

[VietPQ]

Originally Posted by Shadyhero1002

Hello there I'm sure it's been answered here in the forums before. When passing the $20k limit for taxes on PayPal will they hold your money and require you to upload a SSN and or EIN number to them so that they can issue you a 1099-k? Or if I go over the 20k limit nothing will happen and I can continue to sell as normal? Right now I'm trying not to go over the limit so I won't have to worry about them limiting my account until I upload a social security or whatever. Safest thing to do seems to stay under $20k on each PayPal account. But tell me if I'm wrong.

May I asked some questions?
At the first time you created a steath account, have you provided for paypal SSN?
As I Know, if we dont have a SSN, then we can not receive money from someone else, so how could you received money?
Thank you!

[NLS]

When it comes to tax time, if your LLC is a single-member LLC, the IRS will disregard the LLC (meaning you do not file a separate tax filing for the LLC) but all the income and expenses are reported with your personal tax filing. Just file your personal taxes with the LLC income and expenses on IRS Schedule C form, just as you would if there was no LLC and the income/expenses were for a sole-proprietor.

LLC provide legal protection, but allow you to report income/expenses on your personal tax forms. Best of both worlds. And you get to sell under the LLC EIN in stealth accounts. Check with your accountant.