I am self-employed and earned approximately $1,000 from transactions paid by customers via PayPal in 2018. My question is this: When reporting this miscellaneous income on my 1040 tax return, do I enter the income amount before or after Paypal takes its cut?
You will report it before PayPal takes its cut and then you will report their cut as an expense.
It would be entered under Other Miscellaneous Expenses>>Bank Charges.
When reporting income coming from PayPal what is it categorized under?
Is it considered a cash payment, a bank payment? Online payment or what?
If you don't get a 1099Misc or 1099K for it then enter it as Cash
How to enter income from Self Employment