This year I received a 1099-K from PayPal for $1,297 in transactions. The vast majority of these transactions were personal: reimbursements from friends/family for stuff I paid for, and a few small cash gifts. There *are* a couple class action settlement payments included, which count as taxable income. But the 1099-K lumps it all together.
I've read about 10 different posts and articles on how to navigate the 1099-K thing this year and I still have zero clue as to how I go about handling this: especially since my 1099-K includes a majority of PayPal transactions that are not taxable, but a couple of small ones that are. What makes it even more complicated is that I happen to be self-employed, but none of these transactions (including the taxable ones) were related to my business.
Any advice is greatly appreciated.
