Taxachusetts and Paypal, guess what, you are getting a 1099-K.

[SCAudiophile]

And >200 transactions...have to meet both criteria

[Mahalo]

Originally Posted by dolsey01

Do you live in Massachusetts and did you receive more than $600 in Paypal payments? Well guess what, you will be receiving a 1099-K form reporting all Paypal payments you received.

Mine just came today. My taxes were filed last week.

https://www.mass.gov/technical-infor...or-third-party

I'm not really sure where to go from here but it has HUGE implications on accepting PayPal moving forward.

Your state considers the money you gained via your sales activity to be income. And, therefore taxable. So, have you considered speaking with your accountant / tax person to determine what costs could be considered part of the sale, or the cost of doing business? Such as audio shows, sales costs like your paypayl costs, etc?

[dolsey01]

Originally Posted by Mahalo

Your state considers the money you gained via your sales activity to be income. And, therefore taxable. So, have you considered speaking with your accountant / tax person to determine what costs could be considered part of the sale, or the cost of doing business? Such as audio shows, sales costs like your paypayl costs, etc?

I went ahead and refiled my taxes with the income from the 1099K and wrote of my cost of goods sold with a Schedule C. Took me an additional 3 hours to find all the receipts, fees paid, shipping charges, etc. After all was said and done, the State of MA received an additional $6. Ridiculous

[For The Love of Music]

Originally Posted by dolsey01

I went ahead and refiled my taxes with the income from the 1099K and wrote of my cost of goods sold with a Schedule C. Took me an additional 3 hours to find all the receipts, fees paid, shipping charges, etc. After all was said and done, the State of MA received an additional $6. Ridiculous

I love that dirty water...

[GreginNH1]

Originally Posted by For The Love of Music

I love that dirty water...

It could be worse. The minimum filing fee for my LLC in California is $800 regardless of revenue and profit/loss.