The PayPal account is mine which is why it's registered to me. I use it for my business. My wife can't have a PayPal account because she's Colombian and PayPal doesn't operate in Colombia. So I send out the bills to her students from my account. The website domain for her business is registered in my name so technically her business is "mine". Normally this isn't a problem because we don't receive anywhere near the $20,000 level which triggers a 1099-K. Unfortunately, my address in PayPal was accidentally listed as Virginia which now has a $600 reporting limit which is why I received a 1099-K. (it should have been California).
"There are many situations where a 1099K might be issued for money that is not taxable, such as gifts received after an appeal for financial assistance. The IRS procedure in such cases is to file by mail, and attach a copy of the 1099K at a written explanation as to why it is not taxable income."
Okay good to know. Was hoping to avoid sending it by mail since I'm outside the US and would have to have a family member send it. Don't really want anyone seeing how much (or little) I make but I might not have a choice. 🙂
