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Old 02-12-2016
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Default How paypal records received money 4 1099

Ok so my "payments received" on my business account that total for the year includes canceled, refunded transactions.

Does paypal include all unsuccessful transactions when counting towards the 20K 1099 IRS limit? I have about $500-750 this year of canceled, or refunded transactions. I suppose if I ship it out it should count but if a buyer pays then immediately wants to cancel why should that count towards that 20K limit?
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Old 02-12-2016
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Default Re: How paypal records received money 4 1099

Probably because they just count up your totals and expect you to deduct cancelled and refunded transactions + postage..
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Default Re: How paypal records received money 4 1099

I do...

Ebay does the same thing with the "overall account sales" but when you check the breakdown summary it doesn't.

So does PAYPAL include cancelled and refunded transactions when hitting that 20K limit? I have a EIN on this account but its sole proprietorship. Ideally I'd like to add a LLC at the end of the year so I'm trying to keep this one under 20K.

If paypal DOESN'T include this sales which really aren't sales then I'm okay but as of now I'm already at 9K for the year.
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Old 02-12-2016
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Default Re: How paypal records received money 4 1099

It is simply total credit card transactions. Nothing more to it.
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Default Re: How paypal records received money 4 1099

Quote:
Originally Posted by yankee View Post
It is simply total credit card transactions. Nothing more to it.

Yep, they count whatever comes in, it doesn't matter if its refunded a minute later. The irs just wants to keep there eyes on accounts that have 20K pass through

And all refunds, expenses, etc is the job for your accountant at tax time
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Default Re: How paypal records received money 4 1099

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Originally Posted by Dmshark25 View Post
Yep, they count whatever comes in, it doesn't matter if its refunded a minute later. The irs just wants to keep there eyes on accounts that have 20K pass through

And all refunds, expenses, etc is the job for your accountant at tax time
Good to know.

Thank you!
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