IRS & online selling

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04-01-2011, 01:40 PM

#11

Scissor Queen

Super Member

Join Date: Jul 2009

Location: Southwest Kansas

Posts: 4,820

Quote:

Originally Posted by jaciqltznok

Quote:

Originally Posted by Scissor Queen

You are actually supposed to report ALL income no matter the source. Keep good records. Even if you're under the threshold to generate the 1099 you are still supposed to report the income.

Reporting the income is the big issue here..it is that ANY & ALL paypal transactions will count as income...even if you send your kids a gift/allowances, etc...they would have declare it as income!

If YOU get gifts or money owed sent to you via paypal or any other electronic payment service it counts as income.

and my CPA says only if you make over $600 in a yr do you have to declare it as income!

Basically you're getting all upset over nothing. Any and All paypal transactions do not count as income. You have to meet the threshold of 20K in income AND 200 transactions to generate the 1099.

Besides, you are allowed to gift somebody 13K a year now if I remember right.

Actually you don't have to file a return if your income is below standard deduction + personal exemption or the standard deduction for someone that can be claimed as a dependent on someone else's return.