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

Shadyhero1002 · #1 03-06-2021

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.

agent006140 · #2 03-06-2021

it is 200 transactions AND $20k,
IT will ask before you hit that limit if it figures it will reach that before yearend

bytor3k · #3 03-06-2021

Paypal will demand a SSN at around 140 - 150 transactions. If you don't comply within 24 - 48 hours your funds will be held until you do.

Shadyhero1002 · #4 03-07-2021

Quote:

Originally Posted by bytor3k

Paypal will demand a SSN at around 140 - 150 transactions. If you don't comply within 24 - 48 hours your funds will be held until you do.

What if I have only about 10 transactions totaling about $18K, when would they demand it then since it's not around 140-150 transactions?

Shadyhero1002 · #5 03-07-2021

Quote:

Originally Posted by agent006140

it is 200 transactions AND $20k,
IT will ask before you hit that limit if it figures it will reach that before yearend

And when they asks to provide SSN for a stealth account when you obviously can't provide one what do you end up doing? If you can't provide a SSN they'll limit the account and you won't be able to have the funds at all? Or is that when they issue the account the 180 day hold?

rsot · #6 03-07-2021

Quote:

Originally Posted by Shadyhero1002

And when they asks to provide SSN for a stealth account when you obviously can't provide one what do you end up doing? If you can't provide a SSN they'll limit the account and you won't be able to have the funds at all? Or is that when they issue the account the 180 day hold?

Usually it's the 180 day hold but lately there have been quite a few cases of PP holding the funds indefinitely - depends on accusation of violation of ToS

Shadyhero1002 · #7 03-07-2021

Quote:

Originally Posted by rsot

Usually it's the 180 day hold but lately there have been quite a few cases of PP holding the funds indefinitely - depends on accusation of violation of ToS

Wouldn't be breaking any ToS. Selling legit items, Just want to receive the maximum amount of money I can get on a PayPal account before needing to send SSN for passing the $20k/200 transaction threshold. When PayPal asks for your SSN and your not breaking any ToS but reaching the $20k/200 transaction threshold will they still put a 180 day hold on your account if you don't want to price your SSN to them?

bytor3k · #8 03-07-2021

Quote:

Originally Posted by Shadyhero1002

...about 10 transactions totaling about $18K...

$1800 per transaction?

My guess you might get 2 possibly 3 if you're lucky.

Shadyhero1002 · #9 03-07-2021

Quote:

Originally Posted by bytor3k

$1800 per transaction?

My guess you might get 2 possibly 3 if you're lucky.

Well it's actually more like 3-4 transactions totaling $18-$20k if were being honest, ($5k-7k per transaction). And you were saying possibly 2 or 3 transactions?

agent006140 · #10 03-07-2021

have you transferred the money to your bank account now?
If I were you ,I will do so,if you can.
Without SSN,your money cant be used to send or pay someone.Your only option is to transfer to your bank account

phaz0rz · #11 03-07-2021

Here's how it works, in my experience.

Shadyhero1002 · #12 03-07-2021

Quote:

Originally Posted by agent006140

have you transferred the money to your bank account now?
If I were you ,I will do so,if you can.
Without SSN,your money cant be used to send or pay someone.Your only option is to transfer to your bank account

Yes I've already transferred the majority of the money to my bank account. I just have some more on hold and gotta wait 7 days. Wasn't sure if I should keep on selling using this PayPal and passing the $20k threshold and just hope they don't limit me and ask for SSN or dump it before they ask and make a new one. With seeing all the posts about having money stuck in their PayPal accounts and having to either wait 180 days or end up losing it all I'm a little hesitant passing $20k. Making a new PayPal account with all the same stealth info seems like the best way if I don't want to be limited and asked to provide the SSN or EIN and just run that account up until just under $20k in sales then make a new PayPal stealth and just repeat from there.

agent006140 · #13 03-07-2021

you can go to Ebay and Paypal forum and see if someone has asked that question,when does Paypal ask for SSN?

Shadyhero1002 · #14 03-07-2021

Quote:

Originally Posted by phaz0rz

Here's how it works, in my experience.

You can go over (way over) $20k as long as you have less than 200 transactions per year. The law says that you have to pass both thresholds for PP to make you a 1099. So as long as you don't cross both thresholds, you're fine.

But honestly man if you're selling $6k items on a stealth account.. with no smaller transactions to show that you slowly built up to larger transactions.. your days are numbered.

The way this forum has always got around the 200/$20k limit is by using EIN's instead of SSN. When PP starts requesting tax info you head on over to IRS.gov and get an EIN for free. Then you upgrade your account to business, give your EIN, and keep selling.

To answer one of the things you originally asked, no, you can't keep going if you cross both thresholds. They aren't allowed to let you cross both without giving a tax ID.

Okay good to hear someone with some first hand knowledge on this. Good to know that I can pass the $20k if I have under 200 transactions and not worry too much.

I do also have smaller transactions of course that I had before I even started selling the big priced items and gained feedback from them haha. That's a must have. I'm still selling those about 2 a day. They're in the $20 range. And some transactions in the $100-$500 range. eBay actually even raised my selling limits up from 25k I think it was to 58k so I think I'm doing fine on eBay at least.

Oh okay I didn't know you could just go and get an EIN number like that. I'm not even sure what it still even is lol. Thought it was some personal identification number or something. Well thank you for that info right there.

And so if you pass both the 20k threshold and the 200 transaction threshold, all the money you have in that account will be limited and frozen until your able to provide an SSN/EIN?

phaz0rz · #15 03-07-2021

If you ever decide to lol

Shadyhero1002 · #16 03-07-2021

Quote:

Originally Posted by phaz0rz

A tax limitation doesn't usually cause you to lose the ability to withdraw funds. Paypal will block you from receiving any more payments but as long you have a bank account attached there shouldn't be any problem withdrawing what you've already taken in.

An EIN is the business equivalent of an SSN. An SSN in a person's tax ID - an EIN is a business's tax ID. They're both the same format (33-2222222).

If you ever decide to get one lol.

Okay great info here. When PayPal asks for the info do they ask to send them either the SSN, or to send the EIN? Either or? Or will you need to tell them you'll want to upload an EIN instead of a SSN?

And also since you uploaded an EIN will you have to pay taxes on that account? Orrrr can you just....

agent006140 · #17 03-07-2021

Paypal does not wait for you to reach 200/$20k to ask for SSN,it has a formula to figure at that rate you are going,you probably will reach that threshold by the end of the year,so it could ask midyear ,sooner than year end.
as for paying taxes on EIN,you should really go to IRS site and learn more

phaz0rz · #18 03-07-2021

They ask for a tax ID and most nonstealth people just give their SSN. People here use EIN's as tax ID's, either because their SSN has been "banned" by PP or because they want to run multiple accounts. If you're a single member LLC they ask for SSN and EIN since you are the only member of the company. I don't think they ask for SSN if your company has multiple members but I can't say for sure because all of my LLC's are single member.

Anyway the workaround has always been just giving them your EIN twice. Put it in the EIN field when they ask, then put it in the SSN field when they ask. It's always worked for me.

You shouldn't be trying to dodge taxes on an account you just made official and linked an EIN to.

yankee · #19 03-07-2021

Phaz is spot on.

I have wholesale paypal accounts that collect 130-160K a year in $10,000 transactions that never get a 1099k

If you get the request and ignore it, you usually can collect funds up to both thresholds are met. At that point you cant get collect any more funds but there is no holds.

Shadyhero1002 · #20 03-07-2021

Quote:

Originally Posted by yankee

Phaz is spot on.

I have wholesale paypal accounts that collect 130-160K a year in $10,000 transactions that never get a 1099k

If you get the request and ignore it, you usually can collect funds up to both thresholds are met. At that point you cant get collect any more funds but there is no holds.

Okay makes sense. Seemed odd for them to hold you money if you don't give them your SSN. Would cause a lot of problems. So seems like I should just keep on using the PayPal until they request it. Thank you!!! Do you guys also know if it would cause any problems if I opened another PayPal/eBay Stealth with the same name/info and start selling and receiving funds on those accounts? Basically just have 2 separate stealth accounts that have the same info and sell as if they were separate?

Shadyhero1002 · #21 03-07-2021

Quote:

Originally Posted by phaz0rz

They ask for a tax ID and most nonstealth people just give their SSN. People here use EIN's as tax ID's, either because their SSN has been "banned" by PP or because they want to run multiple accounts. If you're a single member LLC they ask for SSN and EIN since you are the only member of the company. I don't think they ask for SSN if your company has multiple members but I can't say for sure because all of my LLC's are single member.

Anyway the workaround has always been just giving them your EIN twice. Put it in the EIN field when they ask, then put it in the SSN field when they ask. It's always worked for me.

You shouldn't be trying to dodge taxes on an account you just made official and linked an EIN to.

1. Okay so I should always pay taxes on the stealths I make with an EIN attached?

2. When it comes time and PayPal asks for SSN, I should get an EIN number and use that number instead of the SSN?

3. When I file taxes (1099-k) I file using stealth information correct?

4. Would making multiple PayPal's using all the same stealth information and not exceeding $20,000/200 transactions a year help anything at all?

Shadyhero1002 · #22 03-07-2021

Quote:

Originally Posted by yankee

Phaz is spot on.

I have wholesale paypal accounts that collect 130-160K a year in $10,000 transactions that never get a 1099k

If you get the request and ignore it, you usually can collect funds up to both thresholds are met. At that point you cant get collect any more funds but there is no holds.

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