If you received money from paypal, but not as a business or with the
intention of making money, you would not have to report the income on
your tax return- unless you sold the items for more than you purchased
them for. Even though you do not have to report the income, keep a copy
of the 1099-K with a list of the items you sold and how much, with your
tax records. If you did sell items as a side job, you would include the income on Schedule C (as business income)
From the Massachusetts Department of Revenue: If you receive either a federal Form 1099-K or a Massachusetts Form
M-1099-K that shows amounts paid to you, you must report
taxable amounts
on Schedule X, as other income, or if such amounts are derived from a
trade or business, on Schedule C. See TIR 17-XX. (emphasis added)
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