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New Member
posted Jan 25, 2021 11:38:27 AM

How do I file money I got through paypal? I don't have a small business but I did some work and got payed with paypal.

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2 Replies
Alumni
Jan 25, 2021 11:53:31 AM

Any income you receive through PayPal, whether or not it's reported on form 1099, must be included on your tax return.

  • If you file as a sole practitioner, income will need to be reported on Schedule C.
  • If your business is run as a corporation, you’ll need to report the income on IRS form 1120 or 1120S.
  • And if you operate your business as a partnership, the income will need to be included on IRS form 1065.

Even if you don't operate a formal business, you will still be required to report the income on Line 21, “Other Income” on IRS Form 1040, Schedule 1.

 

In TurboTax report it in

  • Federal Taxes
  • Wages & Income
  • Less Common Income
  • Miscellaneous Income
  • Other Taxable Income (this includes 

    Report any other taxable income here, including:

    - Taxable court settlements
    - Punitive damage awards from lawsuits
    - Executor's fees if you're not in the business of being an executor
    - Other taxable income

 

Level 15
Jan 25, 2021 11:57:36 AM

You may or may not receive a Form 1099-NEC or 1099-MISC from PayPal reflecting the work you performed.  Please see the TurboTax Help article If I didn't get a 1099-NEC or 1099-MISC, do I still need to report the income? Even if it's less than $600? for more information and entry guidance.

Also see the TurboTax Help article "How do I report income from self-employment?" for guidance on entering these payments.

You're generally considered to be self-employed if you work as an independent contractor, consultant or freelancer, even if you also have a salaried job.