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Delay in 1099 PayPal reporting of income over $600

June 16, 2023 04:30AM
This is why you need exquisite record keeping!

@johnb974 wrote:

This will affect mystery shoppers. Reimbursements are not taxable, yet PayPal and other apps do not separate reimbursements from fees paid. If your 1099's don't match, it will cause issues delaying any refunds or taxes you owe.
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June 16, 2023 05:24AM
@johnb974 wrote:

Not only will she pay more in federal taxes as income, because she would have to file a Schedule C form, she'll have to pay more in Social Security and Medicare taxes.

Any person who receives self-employment income falls into two categories: those who already file the appropriate forms and pay the required taxes and those who the IRS would rightly pay an informer's fee to find out about.
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June 16, 2023 05:25AM
@johnb974 wrote:

@Rousseau wrote:

@johnb974 wrote:

Why can I no longer send friends and family payments to Business accounts?

As of July 28, 2022, US Business accounts can no longer receive friends and family payments from US senders. This change was made for the following reasons:

I have a business account, my friend sent me money on PayPal. It was a gift. They could not send it any other way. This is going to make things a mess.

[www.paypal.com]

People do not typically have businesses as friends, Odd that your friend sent a gift to your business rather than sending it to you. I have never heard of a business receiving a gift.

I only have one account on PayPal and that's for my business. My friend tried using Western Union, but had problems with it. The only way to send it was using PayPal. I did not know there would be an issue with it. I wonder how many others don't realize that.

One should never co-mingle business and personal finances. If you wish to use PayPal for personal transactions, get a personal account too.
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June 16, 2023 10:45AM
@Rousseau wrote:

@johnb974 wrote:

Not only will she pay more in federal taxes as income, because she would have to file a Schedule C form, she'll have to pay more in Social Security and Medicare taxes.

Any person who receives self-employment income falls into two categories: those who already file the appropriate forms and pay the required taxes and those who the IRS would rightly pay an informer's fee to find out about.

OH PLEASE....it's not like I'm making millions....I barely get by as it is now.
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June 17, 2023 06:11AM
@johnb974 wrote:

@Rousseau wrote:

@johnb974 wrote:

Not only will she pay more in federal taxes as income, because she would have to file a Schedule C form, she'll have to pay more in Social Security and Medicare taxes.

Any person who receives self-employment income falls into two categories: those who already file the appropriate forms and pay the required taxes and those who the IRS would rightly pay an informer's fee to find out about.

OH PLEASE....it's not like I'm making millions....I barely get by as it is now.

If you think that the lawful taxes due on your work are excessive, pay them and then write to Congress.
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June 17, 2023 06:19AM
Unfortunately when it comes to the tax code, the American people have no power.
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June 18, 2023 04:17AM
Refund the payment to your friend. Then have him send it to you via a different non-business channel. I would recommend setting up Zelle payments on your bank account. EASY and reliable.
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