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Level 1

How to report income from Paypal?

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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Level 8

How to report income from Paypal?

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. 

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5 Replies
Highlighted
Level 8

How to report income from Paypal?

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. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

om2
Level 4

How to report income from Paypal?

When reporting income coming from PayPal what is it categorized under?

Is it considered a cash payment, a bank payment? Online payment or what?

Level 20

How to report income from Paypal?

If you don't get a 1099Misc or 1099K for it then enter it as Cash

 

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

om2
Level 4

How to report income from Paypal?

Great! Thank you so much!!!

Level 20

How to report income from Paypal?

Follow the interview screens ... go slow and read them carefully ...

 

general income ADDITIONAL income in SE version.PNG