@2stepps wrote:
Also, there are shops that will pay you to have your taxes done. But I would get someone to double-check if you can get it done as a low-income earner. I am on disability and I can earn up to $8000 extra a year with the SS increase I don't know but I have never come close to that. I have never even gotten enough from one company to get a 1099. But I hear that it will be different this year if you have over $600 come in a month from different sources be it Venmo, Paypal, Cash app, They will have to send you a 1099 and if you are not registered as a business you can't deduct mileage or supplies for this year. I guess the IRS is really after the pennies of the poor instead of the megabucks of the wealthy.
@jrj76 wrote:
I totally understand that PayPal would not know or be able to separate this for you. My question is do you add all of the reimbursements to the schedule C or do you just straight up deduct those from the overall total.
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@myst4au wrote:
My personal preference is to add in the reimbursements on Schedule C so that the total matches what Paypal has reported to the IRS. Then list the reimbursements as business expenses on the same Schedule C. There are some on this Forum who have traditionally not included reimbursement on Schedule C. That is a legal alternative, but that was before Paypal started sending totals (as required) to the IRS. I am curious to see how other respond to you@jrj76 wrote:
I totally understand that PayPal would not know or be able to separate this for you. My question is do you add all of the reimbursements to the schedule C or do you just straight up deduct those from the overall total.
@jrj76 wrote:
@myst4au wrote:
My personal preference is to add in the reimbursements on Schedule C so that the total matches what Paypal has reported to the IRS. Then list the reimbursements as business expenses on the same Schedule C. There are some on this Forum who have traditionally not included reimbursement on Schedule C. That is a legal alternative, but that was before Paypal started sending totals (as required) to the IRS. I am curious to see how other respond to you@jrj76 wrote:
I totally understand that PayPal would not know or be able to separate this for you. My question is do you add all of the reimbursements to the schedule C or do you just straight up deduct those from the overall total.
That is fair, but wouldn't the people who don't include it on the schedule c were they on the hook for the taxes for the reimbursements? Seems absolutely absurd to pay income taxes on the reimbursements and would shock me how people successfully make a full time income doing this if that would be the case.
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@jrj76 wrote:
Can someone help with my question? Just got a 1099 for $1015 for the month of December. $400 of that was actually reimbursing me car washes. I would have never thought they would be keeping the reimbursements and the fees in the same pool. Is this up to me to prove or is this a mistake?
Liked by: walesmaven, myst4au, BirdyC, ceasesmith, KathyG