In 2020 Virginia lowered the TSPO reporting threshold to $600, matching that of the federal 1099-MISC. The federal threshold for having to report TSPO income remains $20000 and/or over 200 transactions per year. In 2020 I had $2200 in Paypal transaction income from selling my used items online. When I enter the info from my Paypal 1099K into TurboTax, it makes me pay ~20% federal tax on that income, and ~23% Virginia tax on it. If the $600 reporting threshold is only for VA, and I remain below the federal reporting threshold, why does TurboTax now show that am I paying federal tax on that income?
