1099-K from PayPal (tax form)

Forget this notion of "tax brackets". With very few exceptions, taxation is incremental. I.e. earning a bit more does not mean everything else if taxed more. Only that extra you earned is taxed at a higher rate than everything else. This is not a new concept.

Not only legal, but it has pretty much always been this way, the only difference is in the past, the government has not had the means to track and collect. Now effectively they do.  Most states have had taxes on used cars, boats, etc., anything where a transfer of ownership has to happen and can be tracked.

Thanks to all who posted very informative.  Also I'm amazed that there is not a "cost basis" associated with this "income" in the IRS doc.  Jeez.

I too used TurboTax for years until it got too complicated, my taxes that is.
Best thing is get a local CPA and do some tax planning as well, pays for itself.  

@audio2design
Let me rephrase that as "income range"

In addition to the OP problem, PayPal reported all my proceeds even transactions that were immediately canceled and refunded before any merchandise changed hands. This has the effect of overstating my taxable income by $7,000. I have been trying to get PayPal to send me a corrected 1099.

My advice is if you get a 1099 from PayPal, check it carefully to make sure they aren't overstating your income.

PayPal just stomped a very large sale over the holidays because it was "over my recent sales pricing." Guess they forgot the 5 figure sales per transaction - reported the income -  done with Japan and Eastern Europe for 10 years. Never had an unhappy customer. Now they want me to prove who I am and a lot more. Guess I am being ’disappeared.’ Flame off.

I think PayPal is under the gun because of cryptocurrency transactions as well as the $5k money laundering limit. I think ETSY, etc. has something to do with it - craft hobby and artisan businesses - who reports that stuff? I’ve met couples who have been making a great living making ’artisan’ items for decades and have never declared a dime in income.

My advice is to get a good accountant. You’ll get back more than his/her fee.

The only time I was ever audited was when I did my taxes with Intuit. If the ’accountant’ you find uses it, run.

PS
Does anyone know of a good alternative to PP?