This keeps popping up in the notifications tab on PayPal. Their system will not accept my current status which has been the same for 10+ years. Have anyone been able to confirm that their SS# is correct?
"Confirm your taxpayer status by adding your Tax ID Number. This will allow you to meet the new IRS requirement and avoid any disruption to your PayPal account."

The title of this thread is misleading. I have had my PayPal account for over 10 years, too. Either SSN or EIN is fine. I have had no issues using my SSN. I don't have an EIN and, as far as I know, there is no requirement by the IRS or PayPal that PayPal users must have EINs.

Have you been hacked?

Have you called PP to get this figured out?

@BirdyC wrote:

Have you called PP to get this figured out?

Have you ever tried calling PP? It's very difficult to get someone on the phone.

MIsleading NOT TRUE

@MisterBill wrote:

@BirdyC wrote:

Have you called PP to get this figured out?

Have you ever tried calling PP? It's very difficult to get someone on the phone.

Actually, it's not, in my experience. You put in a request for a call on the website, they give you passcode on-screen, then you call and give the passcode when prompted. I've never had a problem contacting them that way.



Edited 1 time(s). Last edit at 11/02/2021 09:14PM by BirdyC.

It's not difficult to contact PayPal. I had a refund issue a few years ago. I contacted them by phone and was successful after a few tries.

I logged in to transfer money and went searching for mention of the IRS requirement. Found this under Activity>My Account>Notifications>US Tax Info>Why do I need to confirm my US taxpayer status? In part:

"Customers who exceed the reporting thresholds set by the IRS ($20,000 USD and 200 transactions) will be asked to confirm their U.S. taxpayer status and to provide their U.S. taxpayer identification number (SSN, EIN, ITIN) and name."

"When you need to confirm your U.S. taxpayer status, we’ll let you know by email and by notifications that you’ll see when you log in to your PayPal account. Click the link provided in the email or in the notification and enter the requested information."

Edited 1 time(s). Last edit at 11/02/2021 11:25PM by Mert.

@CANADAMOMMY wrote:

MIsleading NOT TRUE

NOT misleading. I was asking a question, hence the question marks. And I quoted the message verbatim.

@HonnyBrown wrote:

It's not difficult to contact PayPal. I had a refund issue a few years ago. I contacted them by phone and was successful after a few tries.

Keywords - A FEW YEARS AGO. Now we are living a Pandemic Life where contacting real people who actually know what they are doing is a rare find.

@BusyBeeBuzzBuzzBuzz wrote:

The title of this thread is misleading. I have had my PayPal account for over 10 years, too. Either SSN or EIN is fine. I have had no issues using my SSN. I don't have an EIN and, as far as I know, there is no requirement by the IRS or PayPal that PayPal users must have EINs.

NOT misleading. I was asking a question, hence the question marks. And I quoted the message verbatim.

New law starting jan 1….1099k to be issued to anyone earning 600 via paypal. 1099k to be issued for 2022 tax year. Paypal needs either ss or ein to issue form made law as of March Covud bill effective January 1

I have a paypal account, too, and I have not seen any notifications like this pop up.

It's true IRS is now closely monitoring PayPal account holders, especially those earing 600 dollars or more. It's easy to get an EIN, most of my mystery shopping accounts are under my EIN.

I made well over 600 this year. How will this affect my taxes? Please give me advise.

You report self-employment income on Schedule C. You can also deduct business expenses on Schedule C. You seem to be concerned that you now have a new problem because you made well over $600 this year. The reality is that if you make $599 and don't get a 1099 form, you are still required to report the income. If you make $125 from self-employment income, you are still required to report the income. There is nothing magical about $600 other than it triggers a 1099 form. Trust me, the MSC company is reporting to the IRS that they paid you $125 (or whatever) since it is a business expense for them. They are just not required to send you a 1099 form. So, use Schedule C to report your self-employment income and expenses.

@melindadarlene06 wrote:

I made well over 600 this year. How will this affect my taxes? Please give me advise.

I have an EIN. It was very easy to get. I also report all the money I make shopping and my expenses on schedule C.

People who are self-employed seem so scared sometimes of reporting income. In one of my other lines of SE, I have colleagues who get freaked when they gross $20k/year, thinking they're going to have to pay a boatload of taxes. I try to explain that by the time they deduct inventory purchases; listing, selling, and payment-processing fees; mileage and other travel expenses; office expenses; and so forth, they're not going to be paying tax on anywhere near $20k. If they have a legitimate, separate in-home office and show a profit after all those deductions, they then can go into using that percentage of housing expense as a deduction.

I've been self-employed in one capacity or another for around 30 years, and have never shown a profit for more than about 30% to 35% of my gross income--and that's using legal deductions. I don't fudge. That percentage stays fairly steady, since as my income goes up, so do my expenses. And in years where I make extra $$, I buy deferred items like a new computer or digital camera or office furniture. Things I need but put off and put off until I make enough to cover the expense. And then I deduct it, so....



Edited 1 time(s). Last edit at 11/04/2021 10:42PM by BirdyC.

Thanks for the information! I'm sorry this is my first year doing this. So what expenses can I deduct? gas, mileage, etc?
Thanks for you help!

@melindadarlene06 wrote:

Thanks for the information! I'm sorry this is my first year doing this. So what expenses can I deduct? gas, mileage, etc?
Thanks for you help!

There are others here who can probably be more helpful, but you can deduct: mileage, but not gas; office supplies used in the course of your mystery-shopping employment, such as ink, paper, pens, pencils; office equipment used in your business, such as printer, computer, digital camera, and phone (in proportion to their use); travel expenses such as overnight lodging and meals when necessary in the course of your self-employment; the percentage of your home you use for an in-home office, but only if that office is used solely for your business (IOW, you can't take the deduction if your office set-up is in your family room or bedroom, but if you have a spare bedroom whose only use is for your business, you can deduct it); and probably a lot of other things I haven't covered here. You can deduct the cost of office furniture for your in-home office IF that office is used only for your business.

When I mention percentages, let's say you buy a new computer and use it 50% for mystery-shopping activities and 50% for home/personal use. You can deduct 50% of the cost. Same with other office equipment. I'm really not sure about furniture, but I don't think you can deduct any of that if your office isn't solely used for business. My in-home office is separate from the rest of my house, and used only for my business, so I deduct necessary furniture costs.

If you end up with a profit after all those deductions, you can deduct a percentage of your housing expense (e.g., utilities) proportional to the amount of square footage you use for your office. Again, I believe that's only if your office is used 100% for your business, but I'm not sure.

Maybe somebody here can offer more clarity on both the furniture expense and the further home-expense deductions. As self-employed, we're lucky we can still deduct those expenses. W-2 employees who work out of their homes (such as salesman who don't live near corporate headquarters) were prevented in the tax overhaul of 2017 from deducting home-office expenses. Which really sucks.

@OldmanJames wrote:

New law starting jan 1….1099k to be issued to anyone earning 600 via paypal. 1099k to be issued for 2022 tax year. Paypal needs either ss or ein to issue form made law as of March Covud bill effective January 1

Please correct me if I'm wrong, but this has not officially been made into law has it? The last I read IF it was passed into law by Congress, it wouldn't go into effect unto after Dec. 31, 2022.

Here is what I read: [www.usatoday.com]

Edited 1 time(s). Last edit at 11/05/2021 05:45PM by Tvolgirl.