PayPal /1099k Threshold Requirements

Forum|Forum|4 years ago
August 5, 2021
1 reply
15 views

Hello there,

I’m from Illinois, so I know each state is different when it comes to receiving a 1099k through PayPal. My question is , in order to qualify . Do I have to go over the amount AND the transactions all together ? Will I be okay ,if I just went over the number of transactions I received but didn’t exceed over the payment amount that Illinois requires to report ? Thanks in advanced

Not A Product Question

rjs

Level 15

The rules for when a Form 1099-K has to be issued are federal rules, not state rules. They are the same nationwide.

It doesn't matter whether you get a 1099-K or not. You don't need a 1099-K to file your tax return. If you don't get one, you report your income based on your own records of how much you received. Only PayPal has to worry about whether a 1099-K is required. You don't have to worry about it. What you have to do is keep accurate records of the payments that you receive.

13121Author

Level 2

@rjs I already made 2 transactions so far, before I make a 3rd , will I receive a 1099k through PayPal , even though I won’t exceed over $1000 this year ?

rjs

Level 15

Are you trying to avoid getting a 1099-K? As I said before, you have to report the income whether or not you get a 1099-K.

PayPal is only required to issue a 1099-K if the total amount of the payments is more than $20,000 and the total number of transactions is over 200. So if you have only 3 transactions and the total amount is $1,000 or less they are not required to issue a 1099-K. Presumably they will not issue it if it's not required.