Any income you receive through PayPal, whether or not it's reported on form 1099, must be included on your tax return.
- If you file as a sole practitioner, income will need to be reported on Schedule C.
- If your business is run as a corporation, you’ll need to report the income on IRS form 1120 or 1120S.
- And if you operate your business as a partnership, the income will need to be included on IRS form 1065.
Even if you don't operate a formal business, you will still be required to report the income on Line 21, “Other Income” on IRS Form 1040, Schedule 1.
In TurboTax report it in
- Federal Taxes
- Wages & Income
- Less Common Income
- Miscellaneous Income
- Other Taxable Income (this includes
Report any other taxable income here, including:
- Taxable court settlements
- Punitive damage awards from lawsuits
- Executor's fees if you're not in the business of being an executor
- Other taxable income
Answers are correct to the best of my ability but do not constitute legal or tax advice.
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