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Level 1
posted Aug 31, 2022 2:47:24 PM

Paypal or other money changing apps

If someone is using Paypal to pay for a puppy online, what is the limit before it is reported to IRS by Paypal?

 

Also, what is the limit for a deposit of cash or check in your checking account before it is reported to the IRS?

 

Are these limit amounts for the entire year or just per transaction?

0 1 235
1 Replies
Employee Tax Expert
Aug 31, 2022 4:15:40 PM

Hi Csan2000, thanks for posting the questions.

 

If the recipient of puppy sale receives more than $600 in total from PayPal for tax year 2022, regardless of number of transaction, PayPal will issue a Form 1099-K.

 

Cash payment report helps government combat money laundering

https://www.irs.gov/newsroom/cash-payment-report-helps-government-combat-money-laundering

The above is per transaction.

 

Hope the above helps.