I have two questions:
1) If someone paid me $610 for some concert tickets on PayPal G&S and I recieved $595 after PayPal charged a seller fee, do I still have to report it.
2) What if someone else paid me through Vemno G&S and the PayPal + Venmo adds up to more than $600 together but less than $600 each. What do I do then?
Responses:
1- In 2022, companies such as Zelle, PayPal, Square, Stripe, Venmo, and others will be sending you a 1099-K if you receive more than $600 in payments during the year. This would be the gross payment amount before fees and fees should be reported to you also. Here is a resource that further explains:
2- The $600 dollar limit discussed above applies to each PSE ( payment settlement entity) separately. So if each PSE amounts are under $600 a 1099K will not be generated.
All income from all sources are reported as income on the Schedule C then the expenses are deducted. Here is another resource that discusses this further in our Turbo Tax Self Employed product:
Great questions and keep the music going!