@KV wrote:
Why on earth we need Paypal to report it again?
@KV wrote:
This is happening in a communist ideology government when they try to take our hard earn money and keep it for themselves (big head skinny body). Don't lecture me about politics. My ancestors are Chinese. I know first hand what the communist government was/is with the actual experience. Let's keep this post about being double-taxed.
@Rousseau wrote:
Because it is the law -- law enacted by democratically elected members of Congress and signed by POTUS. A law necessary, because amazingly some Americans do not voluntarily report their income. A law which will not negatively impact anyone acting lawfully beyond a bit more record keeping.
@tstewart3 wrote:
Congress passes a law to make accounting and filing tax returns more time consuming and complicated only to have the IRS throw away the tax returns of 31 million people without the returns being processed.
They will.@johnb974 wrote:
My concern is PayPal will send you a 1099 and the MSC will send you a 1099.
You have to file your taxes, not the IRS, therefore the burden of proof is yours. PayPal will send a statement that lists all payments you received via PayPal (1099-K). The MSC will send a 1099-MISC showing all payouts sent to you. When you report your income to your accountant (or to TurboTax), you will not enter both amounts. The amount listed on the 1099-K should equal the amount listed on the 1099-MISC (assuming the MSC used PayPal to process your payment v/s direct deposit). You can generate an invoice on the MSC's site (if they use Sassie - use your records or their statements if they use another reporting system) and generate a PayPal activity report so that you can compare the two if it will ease your mind. I just did it before I hit "Reply" - it took less than 5 minutes.@johnb974 wrote:
Someone working in the IRS may not know the difference and count your income twice.
@boridi wrote:
Where do you generate an invoice on Sassie?
@DRJ wrote:
Won't the 1099-K from Paypal show all the payments to you including reimbursements? If so, the 1009-K will not match the 1099-MISC from the MSC and will appear to overstate your income by the total amount of the reimbursements.
@walesmaven wrote:
Lesson: keep track of all reimbursements, organized by MSC. End of sermon?
@DRJ wrote:
@walesmaven wrote:
Lesson: keep track of all reimbursements, organized by MSC. End of sermon?
No, I get that, I'm just thinking that it muddles things for the IRS and could raise questions.
End of sermon.
Somehow I doubt that a measure to target unreported income is mean to target the poor, unless they're only poor on their tax return.@johnb974 wrote:
It's also targeted at the poor and middle class.
@DRJ wrote:
Won't the 1099-K from Paypal show all the payments to you including reimbursements? If so, the 1009-K will not match the 1099-MISC from the MSC and will appear to overstate your income by the total amount of the reimbursements.
@walesmaven wrote:
Lesson: keep track of all reimbursements, organized by MSC. End of sermon?