The transaction with PayPal is supposed to happen when my order is ready for pickup, which it says tomorrow for the mower and a week from tomorrow for the bagging setup.
That the GPS to the range for a little gunsmoke therapy.
Libs gotta squeeze every dime they can from the public.
No, a pride flag - to fly from the back of the mower as Rick goes around the yard. Wearing his Village People leather chaps.
It’s not the sending part, it’s the receiving part that the irs changed from 10,000 to 600. And PayPal is responsible for sending the 1099k to the recipient.
The key is to keep the paper trail for your returns. Again, there is not a tax liability since these transactions are not considered income.
And if you guys want to argue about this, here's the info from the IRS site. Understanding Your Form 1099-K | Internal Revenue Service
The highlighted red text applies here.
Who Sends Form 1099-K
Payment card companies, payment apps and online marketplaces are required to file Form 1099-K with the IRS. They also must send a copy of the form to taxpayers by January 31.Who Gets Form 1099-K
You should get Form 1099-K for these situations:If You Received Any Payments With Payment Cards
This includes credit cards, debit cards and stored value cards (gift cards).If You Received Payments Over $600 With a Payment App or Online Marketplace
This includes payments for a personal item you sold or for goods you sell, services you provide or property you rent through any:- Peer-to-peer payment platform or digital wallet
- Online marketplace (sale or resale of clothing, furniture and other items)
- Craft or maker marketplace
- Auction site
- Car sharing or ride-hailing platform
- Real estate marketplace
- Ticket exchange or resale site
- Crowdfunding platform
- Freelance marketplace
$600 Reporting Threshold
Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600.The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated.
The reporting threshold for third party settlement organizations, including payment apps and online marketplaces, was lowered to $600 by the American Rescue Plan Act of 2021. Find more information on the change in reporting requirements.
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What Shouldn't Be Reported on Form 1099-K
Money you received from friends and family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for a household bill. These payments aren't taxable income.Be sure to note these types of payments as non-business when possible in the payment apps.
Take these steps if you receive a Form 1099-K in error.
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What to Do With Form 1099-K
Here's what to do if you receive a Form 1099-K:Check the Information on the Form
Review the information on the Form 1099-K to make sure it's correct.Take these steps if:
Review the Gross Payment Amount
The gross payment amount (Box 1a) on Form 1099-K reports the total payments you received. It doesn't include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. These items are not income. You can deduct them from the gross amount.Compare the gross payment amount to your records. These may include reports from payment apps or online marketplaces, payment card receipts or merchant statements. Use the records to:
- Confirm the gross payment amount is accurate
- Check the gross amount for expenses you can deduct (fees, credits, refunds, shipping, refunds, etc.)
Use Form 1099-K to Help Report Your Income
Use Form 1099-K with your other tax records to help figure and report your correct income on your tax return.How you report Form 1099-K payments on your tax return depends on the type of transactions you did:
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If You Sold a Personal Item
You may get a Form 1099-K if you received payments for a personal item you sold through a payment app or online marketplace.A personal item is something you owned for personal use such as a car, refrigerator, furniture, stereo, jewelry or silverware, etc.
How you report these payments on your tax return depends on whether you sold the item at a loss or a gain. If you sold a mix of personal items at a loss and a gain, report them separately.
Personal Items Sold at a Loss
A loss on the sale of a personal item isn't deductible.If you sold personal items at a loss, you have 2 options to report the loss:
Report on Schedule 1 (Form 1040)
You can report and offset the Form 1099-K gross payment amount on Schedule 1 (Form 1040), Additional Income and Adjustments to IncomePDF.Example: You receive a Form 1099-K for selling your couch online for $700, which is less than you paid for it.
On Schedule 1 (Form 1040):
- Enter the Form 1099-K gross payment amount (Box 1a) on Part I – Line 8z – Other Income: "Form 1099-K Personal Item Sold at a Loss, $700"
- Offset the Form 1099-K gross payment amount (Box 1a) on Part II – Line 24z – Other Adjustments: "Form 1099-K Personal Item Sold at a Loss $700"
Report on Form 8949
You can also report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.Back to top
Personal Items Sold at a Gain
A gain on the sale of a personal item is taxable.If you receive a Form 1099-K for a personal item sold at a gain, report it on both:
- Form 8949, Sales and other Dispositions of Capital Assets
- Schedule D (Form 1040), Capital Gains and Losses
If You Sell Goods, Rent Property or Provide Services
You may get a Form 1099-K if you received payments through payment cards, payment apps or online marketplaces.These transactions can include payments you received as a gig worker, freelancer or other independent contractor (self-employed). This may also include payments you received from selling items as a hobby.
Report Form 1099-K Payments and Other Income on Your Tax Return
You must report all income you receive on your tax return. This may include the gross payment amount shown on Form 1099-K and amounts on other reporting documents like Form 1099-NEC or Form 1099-MISC. It should also include amounts not reported on forms, such as payments you receive by cash or check.Here's where to report Form 1099-K payments on your tax return for goods and services you sold:
- Sole proprietor (gig workers, freelancers and other self-employed people) – Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)
- Partnership – Schedule E, (Form 1040), Supplemental Income and Loss
- Corporation – Form 1120, U.S. Corporation Income Tax Return or Form 1120-S, U.S. Income Tax Return for an S Corporation
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If You Get a Form 1099-K in Error
You may get a Form 1099-K in error when the form:- Reports payments that were gifts or reimbursements from family or friends
- Doesn't belong to you or is a duplicate
- Contact the issuer immediately – see FILER on the top left corner of Form 1099-K
- Keep a copy of the original form and all correspondence with the issuer for your records
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If Your Form 1099-K Is Incorrect
Take the following steps if any of this information on the form is incorrect:- Payee Taxpayer Identification Number (TIN)
- Gross amount of payment card/third party network transactions
- Number of payment transactions
- Merchant Category Code (MCC)
Keep a copy of the corrected Form 1099-K with your records, along with any correspondence you have with the issuer or PSE.
Don't contact the IRS. We can't correct your Form 1099-K.
If You Can't Get a Corrected Form 1099-K
Report the amount on Schedule 1 (Form 1040), Additional Income and Adjustments to IncomePDF.Example: You receive Form 1099-K for $650 your roommate sent you for their share of rent.
On Schedule 1 (Form 1040):
- Enter the error on Part I – Line 8z – Other income: "Form 1099-K received in error, $650"
- Adjust it on Part II – Line 24z – Other adjustments: "Form 1099-K received in error, $650"
My $.02
1: Your tax guy only works the numbers you give him. If you cant write it off; then ignore it entirely.
2: In the odd / worst case scenario and only after an extensive audit and legal justification could the IRS attempt to get what 30% off this. I don't think $900.00 is worth it to them...
3: I wouldn't want to interview the 50 sum odd gun toting okie buddies of yours that contributed to "mowergate" for any sum of money.
1: Your tax guy only works the numbers you give him. If you cant write it off; then ignore it entirely.
2: In the odd / worst case scenario and only after an extensive audit and legal justification could the IRS attempt to get what 30% off this. I don't think $900.00 is worth it to them...
3: I wouldn't want to interview the 50 sum odd gun toting okie buddies of yours that contributed to "mowergate" for any sum of money.
Hahaha. Love-it!
