Question

1099K Transaction Updates

Forum|Forum|3 years ago
October 31, 2022
1 reply
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Has there been any updates as to everything I BOUGHT through PayPal is to be reported on the 1099-K or Section C?

TurboTax Deluxe Online

Employee

Form 1099-K reports amounts that you received, not amounts that you paid.

If the purchases that you paid for with PayPal are personal expenses, you don't report them on your tax return at all. If they were business expenses, you enter them as business expenses and they will go on Schedule C. But the tag below your question indicates that you are using TurboTax Deluxe Online. You cannot enter business expenses in TurboTax Deluxe Online. You would have to upgrade to Self-Employed, or use any version of the CD/Download TurboTax software.

If you receive a Form 1099-K for money that was paid to you, you report it in the appropriate place on your tax return, depending on what the payments were for.

In a question that you posted a few days ago you indicated some uncertainty about whether your purchases and sales constitute a business or are personal. It might be a good idea to consult a local tax professional to clarify the nature of your buying and selling, and how you have to report it. If you want to try to get clarification here, you have to provide a lot more detail about exactly what you bought and sold, and for what purpose.

If you want to continue this discussion, please continue in this thread. Do not post any more separate questions about your buying and selling activity. When information is scattered in multiple threads it's confusing and hard to follow, and hard to see the whole picture.

B

BlueDuck14Author

My Apologies for posting on multiple threads

I Just am really curious in regard to the next filing season.

I will try my best to clarify what I bought and sold On Paypal.

"You have to provide a lot more detail about exactly what you bought and sold, and for what purpose."

- In the online art community, people pay and get paid to draw pictures for customers; one of the most popular transaction sites to do this Is through PayPal. Almost all of my purchases that were transactions via PayPal were for these artists to draw specific ideas and pictures for me for references to use for my own drawings. The Payments for stuff i bought were categorized under "Goods and Services". In June, I decided to try out selling commissions myself; with my average price being $13 for character sketches. I ended up grossing a little under $600 dollars overall from customers ordering custom drawing commissions from me. Most of this net gross money I transferred to my bank account in order to help pay off my credit cards.

All the transactions that were made (whether it being ordering art commissions or getting money to draw them) were made on my Personal PayPal account; I have never set up a Professional Business Account on PayPal.

Would you like more info?

Critter-3

Ok ... once again a 1099-K is ONLY issued for INCOME you earned and not for expenses you pay for in your paypal account. The rest of your issues/questions are with Paypal rules so talk to them directly.