I just received a 1099-K from PayPal and they used an outdated address. I tried calling to get it corrected and have had no luck so far. It looks like a lot of others have had the same issue. Does this need to be corrected? All other info including earnings, name, and SSN are correct - Just an outdated address that they pulled from an old billing address.
Thanks!!
No, this does not need to be corrected. Since everything else is correct you just proceed as if the address is correct.
Thanks so much! When I report it, will I need to enter the address as shown on the form or the correct address?
Appreciate your help
Either is fine as it will not impact your return. If you enter the address shown, I think TurboTax will just give you a reminder that the address is not the same as the one on your return and to update it with the payer. As a tax preparer, I never pay any attention to the address listed on the forms for my clients.
Really appreciate your help here! Thanks for the quick responses and putting my mind at ease.
Hope you have a great week!
Even if the address is from a different State? Same thing happened to me. I live in NC since 2014, and the address is from VA. The last thing I want is to get penalized for not paying taxes in that state.
As long as the SSN (yours) and the amount reported on the 1099-K are correct, the address on the 1099-K is not relevant to your tax return.
If you do not live in VA, you won't owe any tax to VA for the 1099-K income. You may want to contact the Payer (PayPal?) and ask them to update your address for future 1099-Ks.
Clarification question on this, Paypal also reports the 1099-K to the state. Would in the above case, Paypal would report it to VA instead of NC. The tax payer would report the income in his/her NC returns and pay the tax as due. However since Paypal sent the 1099-K to VA, wouldn't VA also expect a return and tax on the amount? Am just trying to understand how the state aspect of the 1099-K works.
It is possible that the income will be reported to the state associated with the mailing address on file at PayPal.
You need to report the income based on where you lived or worked when it was earned. If you didn't live or work in that state when the income was earned, you don't need to report it in that state. If the state department of revenue inquires about it, just have evidence supporting the fact that the reporting on the 1099 form is incorrect. @informedNB