Yes, Massachusetts and a few other states have lowered the threshold for reporting income from PayPal on a 1099-K. The Massachusetts State Tax website says that if the income on the form did not meet the federal threshold of $20,000, then the 1099-K only needs to be reported to Massachusetts and not included with the IRS return. There is a separate link to MassTaxConnect as shown in the link in the paragraph Submission of Forms 1099-K to DOR using combined Federal/State Filing Program. Massachusetts 1099-K Submission
The FAQ section of the same web page has a section "Since I received a Form 1099-K, does that mean I owe tax?" FAQ 1099-k Massachusetts Number 2 addresses selling personal items at a loss while downsizing.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
