Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 27, 2020 9:53:08 AM

I cannot efile if I don't have my clients EIN bc they paid me through Paypal?

0 3 507
3 Replies
Expert Alumni
Feb 27, 2020 10:17:27 AM

If you were paid by a person or business via PayPal’s Friends and Family option, you will need to get a 1099-MISC from them. When  this method is used to transfer funds, PayPal assumes it’s a non-business transaction and doesn’t include it in their 1099-K.  If this is the case, you will need to contact the payor.

 

If you  were paid as a contractor via PayPal business, you will not have a 1099-Misc issued to you. PayPal is considered a third-party merchant and they are required to issue their own 1099 forms, called a 1099-K.

 

New Member
Feb 27, 2020 1:18:53 PM

I did not get paid through friends and family as that is against the rules. 

I never assumed I would be getting a 1099 nor did I said I am expecting one. I know that since they didn't pay with cash or check I would not be getting a 1099. Paypal will not send a 1099 of their own unless a person has made over $20,000 AND has over 200 transactions on their account. I did not reach either of those requirements. 

I have talked to a few CPAs and they all said I do not have to have my clients EIN number to file however, when doing small business TurboTax it is requiring me to enter the EIN before I can efile. So what do I do? I am getting a lot of push back from my clients about this and they don't want to give me their EIN.

Expert Alumni
Feb 27, 2020 1:25:56 PM

Where are you trying to enter this information that it is asking for an EIN?  The money you were paid through Paypal should just be reported as cash income.  You do not need EIN numbers for cash income.