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Level 1
posted Apr 3, 2022 8:31:22 PM

Received 1099K from Paypal

I received a 1099K from Paypal. It shows alittle over $700 for (card not present transactions). The majority of payments I received, were for merchandise refunds for merchandise that I returned that was defective. Also, there were some payments I received from my kids for money that I had loaned to them. I did receive some money from MyPoints for purchases or offers that you cash the points in for money through Paypal. So what do I do with this 1099K? 

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1 Replies
Expert Alumni
Apr 3, 2022 8:46:22 PM

Unless you are self-employed and filing Schedule C, you don't need to do anything with the 1099-K.  You may receive a letter from the IRS because you didn't report it, but you can simply respond to them that is is for refunds of personal items purchased through PayPal.