How to report income from Paypal?

[Taxtony]

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?

[Vanessa · Accepted solution]

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. 

[om2]

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

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

[VolvoGirl]

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]

Great! Thank you so much!!!

[Critter]

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