Tax rules have changed
We’ve got you covered with all the details:
Beginning January 1, 2022, the IRS implemented new reporting guidelines for individuals receiving goods and services payments on PayPal and other platforms totaling $600 or more per year.
So what exactly does this mean for you?
Well, if you’re getting payments from friends and family members, this won’t apply (lucky you!). Friends and family payments are things like splitting a bill, sharing apartment expenses, or paying back friends. None of these are reported.
The new tax requirements only apply to goods and services payments. These transactions are tagged in the app by a buyer, indicating they’re purchasing something like a couch from a seller. Payments received by a Seller Profile are also goods and services payments.
If you receive over $600 in goods and services payments, we’ll automatically keep track of these payments and provide you with a 1099-K form at the end of the year. If your tax info is not complete, we’ll reach out to you with instructions.
And remember, this only applies to receiving goods and services payments. Payments that you send are not reported.
This info isn’t tax advice. Please consult your tax advisor about these. If you need more info, you can learn more here.