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Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

Hey guys,
I am using a friends Paypal, she only has her driver license attached to the Paypal account. I've gone over the 20K limit on Paypal but Paypal have NOT asked for my SSN or EIN. I assume they will do so soon. But I was wondering since there is no SSN/EIN attached to this Paypal account will my friend be liable to taxes (since there's no way to trace back to her SSN) or do I have to pay taxes since the money is deposited into my bank from Paypal?

My question is who pays taxes - the person receiving the funds from the Paypal deposits or the Paypal account holder (with NO SSN/EIN attached, just Drivers License)?

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

Did you not even think about this when you started to use the account?


:faint:

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

You really need to stop using this paypal account. Right now your friend will not be held accountable to the taxes but if you attach at SSN (your friend's) to that account your friend will be accountable for your actions.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

doesnt matter if you go over 20k it has to be 20grand and 200 transactions both!

we did this anyways last year and my friend did not get crap from them. literally nothing and he has never heard anything about it.

he even checked paypal and there was nothing there to file.

I talked to my tax guy briefly about it and he said well you know its regarding the 200 transactions and credit card payments right??

I dont know all the stipulations but this is not a simple matter you can get a answer from on a forum.

I think there is alot of confusion on this and you want to avoid going over the limit if you can.

I would recommend talking to a tax guy and not look here for advice. no one here will do your taxes and if they give u a definite answer you or your friend will pay the price for not talking with a professional.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

a little word of advice here too. if they ask for your friends ssn on pp dump the account

seriously dont put your friend thru this like I made the dumb newb mistake doing in the past.

I was greedy and not thinking of others. Dump the account and start working on your own.

I dont care what your friend says either, he say it ok... blah blah.
seriously listen and dump the account if you trigger that message.
you will be happy in the long run u did.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

You might want to change the account to a business account and attach an EIN. That way, the business would be responsible for the taxes. I would not use your friend's social security number under ANY circumstances. If things go south, it could cost you a friendship.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

friend's name is on paypal....

:noidea:

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

Thanks guys that clears up a lot of confusion. Yeah I have an EIN but if I attach that and the paypal account is still under my friends name, will that be okay? The EIN is under my name. Thanks!

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

You would update to business and add EIN.

DON'T DO THIS UNLESS THEY DEMAND IT! IMO anyways.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

If you do this, the existing paypal will be gone forever and your friend can go open another if they choose.

I would still wait for paypal to demand it.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

Just stop using the account for rest of this yr don't even chance it
I'm surprised they didn't ask for s.s usually when u approach 140 transaction and see that your close to 10,000 mark they will or if u are selling really quick they will once u reach 100

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

Some of us are testing this late in the year(the past two weeks for me). I have one account exceeding 30K and around 120 transactions in the past 10 days with no tax request.
A couple others more than 15K and 80-100 items with no request. Keep in mind my starting day on these was November 30th.

Re: Using friends Paypal, no SSN attached, over 20K how to pay taxes?
 

You need to hit BOTH the $20k AND 200 payments in order for PayPal to send you a 1099k