PayPal 1099K Form

[RW13]

I received a payment for a non-profit with my personal PayPal account and PayPal issued a 1099K for the transaction.  This was just a pass-through, as I issued a check to the non-profit for the full amount.  What do I have to give the IRS to show that this is not personal income?

[DavidS127 · Accepted solution]

You don't need to provide anything to the IRS, unless the IRS requests information.  You don't enter a 1099-K or provide it with your tax return.  The 1099-K essentially notifies the IRS that you were paid money via a credit card.

Aside from the intent of the transaction, i.e., that you were acting as a conduit for the charity, the IRS requires that contributions be made directly to the charity in order for the contribution to be deductible.  So, what technically happened is that you received a gift (not taxable to you, and doesn't need to be reported on your tax return) from the donor, which you turned around and donated to the charity.  

[RW13]

Hi David,

That's a good answer, simple and makes sense.  I hope that helps someone else as well.