https://ttlc.intuit.com/community/taxes/discussion/i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to-report/01/2131780#M767363 Virginia requires merchant reporting at a threshold of "$600&nbsp;&nbsp;USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions". However, we did not sell goods or services - the $1300 was a gift. Thu, 25 Mar 2021 00:30:39 GMT mirceajr1 2021-03-25T00:30:39Z https://ttlc.intuit.com/community/taxes/discussion/i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to-report/01/2131780#M767363 Virginia requires merchant reporting at a threshold of "$600&nbsp;&nbsp;USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions". However, we did not sell goods or services - the $1300 was a gift. Thu, 25 Mar 2021 00:30:39 GMT https://ttlc.intuit.com/community/taxes/discussion/i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to-report/01/2131780#M767363 mirceajr1 2021-03-25T00:30:39Z https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2131869#M767401 <P>No you do not have to report gifts.&nbsp; 1099-K is used for electronic transactions and as you correctly stated, the Virginia filing threshold is problematic for many people.&nbsp; I suggest keeping a copy with your records (including a printout of the Paypal transaction in case they do question you (it is highly unlikely).</P> Thu, 25 Mar 2021 00:57:47 GMT https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2131869#M767401 MaryK4 2021-03-25T00:57:47Z https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2414988#M861607 <P>But if the gift was given via a credit card and you received the same 1099-k, then what? I can’t just not include it somehow in my tax return, I could get a you-know-what…</P> Tue, 25 Jan 2022 16:10:09 GMT https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2414988#M861607 Ejr84 2022-01-25T16:10:09Z https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2415069#M861650 <P>Gifts are not taxable for income tax purposes and should not be included on your return.&nbsp;TurboTax says: "If you received the money, no matter how much or how little, you don't report anything."</P> <P>&nbsp;</P> <P>You could get a you-know-what" from the IRS because they won't know whether the 1099-K&nbsp;was a gift or something else. If you receive an audit letter, tell the IRS the amount&nbsp;was a gift and include some proof if possible. For example, maybe there was a personal message on the PayPal transaction. Otherwise you can ask the giver to write a note for you to send along with your response to the IRS.</P> <P>&nbsp;</P> <P>Gifts up to $15,000 per person are not taxable for gift tax purposes to the giver so your friend will not have to worry about IRS issues if they write a&nbsp;letter for you.</P> <P>&nbsp;</P> <P>For more info: <A href="https://ttlc.intuit.com/community/tax-topics/help/where-do-i-report-a-cash-gift/00/26793" target="_blank">Where do I report a cash gift?</A></P> Tue, 25 Jan 2022 16:33:28 GMT https://ttlc.intuit.com/community/taxes/discussion/re-i-received-a-1099-k-paypal-due-to-1300-wired-to-my-account-as-a-wedding-gift-do-i-need-to/01/2415069#M861650 ErnieS0 2022-01-25T16:33:28Z