Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
BlueDuck14
Level 1

PayPal Transactions regarding 1099k CHANGES

Hello,

 

So, I was reading up on the new thresholds for qualifying for the 1099k form (basically if you earned +$600 starting the entire year of 2022, then you'd have to file as well as record every single transaction made on PayPal in 2022).  I'm just under the Minimum threshold of +$600, but since I use PayPal to buy a lot of stuff (much more than I sell), will I owe/have to pay taxes on all the stuff I BOUGHT? I would really like to know regardless because it's stressed me out for a couple of days now.

 

Edit: I have been using a personal PayPal account for my transactions, I don't have a business account.

2 Replies
Bsch4477
Level 15

PayPal Transactions regarding 1099k CHANGES

While what and how that income is reported to you is new, tax law has not changed. You merely report income, just as you should have been doing previously. No, you will not be taxed on the amount you spent for purchases. Exactly how that income will be reported in TurboTax remains to be seen. 

BlueDuck14
Level 1

PayPal Transactions regarding 1099k CHANGES

Thanks for letting me know XD 

Dynamic AdsDynamic Ads
Privacy Settings
v