1099-K from PayPal (tax form)

Please read this and check your state laws:.  "Sellers in Two States Shocked by PayPal Tax Notice" https://www.ecommercebytes.com/C/blog/blog.pl?/comments/2018/2/1517955236.html/2/20

Been selling on Ebay since 2004 and last few years been receiving these 1099’s. I receive them even if I only sold say 20 items amounting to say 1500 bucks! Last year I sold what amounts to about 10k and maybe 12 transactions, both below the threshold of 20k and 200 transactions. I just make a chart every year indicating item description, my original cost, and the sale price. The last column is what I either made or lost, usually lost....if it’s a loss it cannot be considered a profit. My tax guy takes all this info and adds or subtracts it all up, plus deducts business expenses etc, computer paper, ink, labels, electricity, etc...he is usually able to reduce my tax burden by 50% or more. It sucks, but it will suck more if not reported at all. In essence, you buy a new product and pay state sales tax. You get sick of said product and sell it on ebay usually at a loss, and the irs sees this as income and taxes you on it again....its ludicrous really. What’s worse is some of the crap sold/formerly owned is still being paid off on several credit cards! It’s insane really. My tax guy said you are supposed to report income even from a garage or yard sale! 🙄....all income must be reported according to him.

Received a 1099-k here as well. Absolutely nowhere near 20k in sales. A lot of purchases were made. Politicians are always trying to stick their hand in your pocket. 

Ah!! I figured out why I received this tax form although I was far from meeting IRS threshold in transaction numbers:

https://www.paypal.com/us/smarthelp/article/i-live-in-vermont-or-massachusetts,-what-are-the-form-10...

I live in one of these states.

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Why did I receive a 1099-K if I didn’t meet the IRS reporting threshold?

Some states (VT, MA, VA, IL, MD) have reporting obligations at a threshold lower than the federal reporting thresholds:

• Vermont, Massachusetts, Virginia, and Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions.

• Illinois: $1,000 USD in gross payment volume from sales of goods or services in a single calendar year with at least 3 payment processed.

I dumped PayPal 10 years ago and glad I did.