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2022 law change - PayPal transactions over $600 (4 Viewers)

IRS has a habit of that. Pushes something through with no guidance for implementation. Then just delaying it a bunch.
 
Tonysquander said:
Full implementation of the $600 threshold delayed again for 2025. New threshold will be $2,500. Supposed to have full implementation in 2026 but at least one bill to revert it back to the full 20,000 is out of committee. Don’t know that it will get passed this session though.

https://taxschool.illinois.edu/post/irs-clarifies-form-1099-k-filing-requirements-starting-in-2024/
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lol government

I would have bet money on the $600 being implemented starting tax year 2024 for the taxes filled out and paid by April 2025, because that was after both Biden's midterm election and reelection campaigns.
 
January is over, tax forms should be available by now, did anybody hear anything from PayPal or Venmo or eBay about any of this?
 
DoubleEagle said:
I got a 1099-K from eBay, but I sold $10,000 plus. Nothing from PP, Venmo or Zelle. I had of lot of F&F transactions.
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Zelle is not considered to be a Third Party Settlement Organization. The statute only applies to companies that hold money for a period of time, Zelle is just a transfer app.
Josh Kifer said:
I got one for PP for 900 bucks. Ugh.
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Was it for a G&S transaction?
 
I received a 1099-K from PayPal for exactly $600 in Goods and Services payments for my personal PayPal account. The money was for covering international re-shipping costs incurred throughout year. The person is in a country where they are unable to send payment as Friends and Family.

2025-02-04_11-31-31.png
 
I just checked Venmo and PP.

Nothing from Venmo. Definitely <5k and no GS payments there.

Nothing yet from PP but it says “under review.” Previous years clearly say not eligible. Definitely 5 digits in both directions in 2024 but I also don’t deposit to bank from PP.

Regardless, I’m avoiding digital payments received this year. Happy to trade or do in person cash transactions moving forward.
 
DirtyTIVA said:
Regardless, I’m avoiding digital payments received this year. Happy to trade or do in person cash transactions moving forward.
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I received plenty of FF payments to my personal PayPal account. As you can see from the 1099-K that I received, they only count the G&S payments as taxable income. You should be fine accepting FF payments.
 
Tommy said:
I received plenty of FF payments to my personal PayPal account. As you can see from the 1099-K that I received, they only count the G&S payments as taxable income. You should be fine accepting FF payments.
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Yup. Just from international who require G&S got me.
 
DirtyTIVA said:
I just checked Venmo and PP.

Nothing from Venmo. Definitely <5k and no GS payments there.

Nothing yet from PP but it says “under review.” Previous years clearly say not eligible. Definitely 5 digits in both directions in 2024 but I also don’t deposit to bank from PP.

Regardless, I’m avoiding digital payments received this year. Happy to trade or do in person cash transactions moving forward.
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Where do you go to see this status?
 
bwahahaha, glad I am not in one of these nanny states, lol $600 VT MA VA MD, sorry if you live there

The IRS has recently announced an additional delay in implementing the new $600 USD reporting threshold for goods and services transactions. The 2024 requirement for Form 1099-K reporting to the IRS is $5,000. Additionally, PayPal and Venmo will file Form 1099-K for any customer who was subject to backup withholding during 2024, regardless of total payments for the year. In the case where an individual state has a lower threshold, PayPal and Venmo will report accordingly.

If you live in the following US states, you’re subject to a lower reporting threshold:
  • Vermont, Massachusetts, Virginia, 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: over $1,000 USD in gross payment volume from sales of goods or services in a single calendar year and four or more separate transactions.
 
PayPal sent me a 1099 for $5,000+ (four total G/S transactions). And they won't allow the account to accept funds via F/F.

Also why my two large chip sales last year for $10k each were handled via checks. Fuck those guys.
 
BGinGA said:
PayPal sent me a 1099 for $5,000+ (four total G/S transactions). And they won't allow the account to accept funds via F/F.

Also why my two large chip sales last year for $10k each were handled via checks. Fuck those guys.
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I think this is going to be the way I go whenever the low threshold takes effect and I decide to sell any of my sets.

Cash in person or check by mail. I won't ship until funds clear and hit my account.
 
JMC9389 said:
I think this is going to be the way I go whenever the low threshold takes effect and I decide to sell any of my sets.

Cash in person or check by mail. I won't ship until funds clear and hit my account.
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A cashier's check sent via priority mail gets the funds in-hand in a couple of days for only $20 or so. Much better than PP fees imo.
 
Tonysquander said:
Never had Zelle charge me. Is that associated with a business account?
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I assume so. Trust Bank is a total armpit of a corporation, aside of building a really nice major league ball park. I'd rather have lower (or no) fees.
 

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