I got a surprise of a 1099K in the mail this weekend from Paypal, I live in Mass. I am on SSI disability, I have 2 kids and single. I sold personal items around the house, used clothes, books, movies, glass items, really junk. I used the profit to catch up on my electric bill which was ready to be shut off. My total with Paypal was $2500.00 for the year, this does not including shipping fees, PayPal fees, Ebay fees, shipping supplies like mailers or tape. State of Mass wants me to claim any sales over $600.00. So, I just went on turbotax, filled in all the info, well I get a refund! Remember, I would not be filling taxes at all this year because my only income is SSI disability, I think the 1099K is making standard deductions and child credit kicks in. Federal refund is $800 and the state is $402. So the state of Mass wants me to claim this $2500.00 and then give me a refund on it, seems like the state is losing money and not making it off Ebay sellers. I would prefer to not file my taxes at all. Id be OK with no taking the $1200.00 in refunds so it doesn't mess up my SSI. What is the best way to handle this?
