DianeW777
Expert Alumni

Retirement tax questions

Money you put into PayPal and then withdraw is not taxable income.  

 

You do not offset any gambling income. You must know the exact amount of any individual gambling winnings and losses.

 

The law is simple and complex for these third party money handlers.  If they receive deposits for you, and track your withdrawals then they must report to you the accumulated total.  It is up to you to prove what is taxable income and what is not.  

 

Personal withdrawals are not taxable.  Any activity in this account must be tracked so that you have proof of what is income and what is your own money being withdrawn.  It's up to you to report taxable income and be prepared to support your entries and decisions on the tax return.  This will be more important than ever for 2023.

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