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?
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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.
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
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