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August 31, 2022
Question

Willl I have to pay taxes on payments sent via paypal freinds and family?

  • August 31, 2022
  • 1 reply
  • 0 views

Before we created a joint account my wife would sent me her portion of the monthly bills via PayPal. These transfers often were far above the $600 threshold.

Am I going to be taxed on these?

What about my wife sending her mother monyt via PayPal when she picks up medications for us on her way over to visit? These will total over 600 by years end. Will she have to pay taxes on something like this?

    1 reply

    Employee
    August 31, 2022

    Tax law has not changed. Those activities are not taxable events. 

    MelkorAuthor
    September 1, 2022

    So even though I have transactions above $600 total, these will not cause a 1099-K to be issued? The law has changed hence why they had the open forum.

    Employee
    September 1, 2022

    PayPal Friends and Family transactions will not be included in the commercial transactions that are notified to the IRS.

    The law change is directed at payments for a business.