Received a 1099-K from Paypal this year...

[paperfist]

Uh huh. Tell us how you really feel.
Careful not to fall off of your pretentious high horse.

I fell off my high horse long ago and landed right on my head.

Everyone worships Lincoln, but he's the bastard that introduced the first federal income tax. It's been a downward spiral ever since.

But if I have to pay tax on every red cent of income that I generate why don't you? Hell in NYS I even get taxed on my gmail for business account.

 

[VirtualLarry]

Ah you tax evaders doing your part to make America great again!

Hanging's too good for you. Burning's too good for you! You should be torn into little bitsy pieces and buried alive!

Just trying to figure out my legal liabilities.

Where have I even suggested anything about tax evasion? I just want to find out what I'm legally liable to pay, and pay it, with the least amount of hassle.

Surely, someone as "American" as you are, can understand that. Or do you just send money to the gov't willy-nilly?

 

[VirtualLarry]

This should clear up any confusion you have regarding 1099's, Massachusetts, and the Federal Government in respect to tax laws.
https://www.mass.gov/service-detail...ents-for-third-party-settlement-organizations

As you can clearly see that outlined in Subsection 3 paragraph 4 this is clearly a state 1099 not a federal 1099.

Payments subject to Massachusetts reporting but not to federal reporting
Where a TPSO has a Massachusetts Form 1099-K reporting obligation but is not required to file Form 1099-K with the IRS, a TPSO may file with the Department using Massachusetts Form 1099-K or IRS Form 1099-K.

Further more under said program using the state DOR program
Submission of Forms 1099-K to DOR using the Combined Federal/State Filing Program
Where amounts paid in settlement to a payee in a calendar year meet both the IRS and Massachusetts Form 1099-K thresholds, a TPSO may use the Combined Federal/State Filing Program to file Form 1099-K with the Department. Where amounts paid in settlement in a calendar year to a payee meet the Massachusetts threshold but not the IRS threshold, a TPSO should submit Form 1099-K to the Department directly using MassTaxConnect (MTC).

The form I received, clearly states "IRS Form", and says nothing about "Massachusetts". It's the federal form. Which, it says, only needs to be generated, if I sold over $20,000 worth, or (mass.gov page says "and", meaning meeting both requirements) 200 transactions, neither of which limit I've hit. It also says, "If I've accepted payment cards". So, someone must have paid me for a forum deal on a CC. That's what I figure. I did not receive a Massachusetts form. However, I am a MA resident, so I'll have to investigate what needs to be done there.

Edit: My form lists total transaction amounts for the year, and "card not present" transactions, which is the same number. Which sort of indicated to me, that none of the transactions were in fact CC transactions.

Which does lend credence to the fact that this is a MA state reporting issue, but why am I receiving, then, an IRS form, and not a MA gov form?

 

[VirtualLarry]

But if I have to pay tax on every red cent of income that I generate why don't you? Hell in NYS I even get taxed on my gmail for business account.

How does that even make sense? It's a gmail account, right? Are you reselling gmail sub-accounts to business, such that you would make an income on it?

Otherwise, I guess I don't understand why you would have to pay income tax on an email account that you hold. Does it earn money for you somehow? Do they 1099 you?

 

[repoman0]

But if I have to pay tax on every red cent of income that I generate why don't you? Hell in NYS I even get taxed on my gmail for business account.

Because it's not income, read the thread FFS. D- trolling attempt.

 

[paperfist]

Because it's not income, read the thread FFS. D- trolling attempt.

It was a joke lighten up repoman0

 

[slayer202]

you wait until 2nd page until you mention you're in Massachusetts? $600 threshold ya sausage

 

[repoman0]

It was a joke lighten up repoman0

Apologies, too many people who would say such a thing in all seriousness these days

 

[Red Squirrel]

The concept of a paypal tax is somewhat new, yeah yeah "ignorance of law is no excuse" but how are people even suppose to know? It's good they are at least sending forms now. I don't think they did before did they?

I know the CRA ordered them to hand over transaction info. I had no idea I was even suppose to pay taxes on paypal transactions, I don't even know how. If they expect us to pay taxes I hope they send forms here too. Crypto is another confusing one. If they really expect people to pay taxes on it, I hope the exchanges are going to just send out the proper forms in the mail for it, because I have no idea how to even do it manually. I have a person do my taxes but she still needs some kind of paper work to go by.

 

[paperfist]

Apologies, too many people who would say such a thing in all seriousness these days

No worries, I thought my reference to the old comic movie Heavy Metal would have been a give away. I get it though. If you spend half a minute in the political forum here you'd think people had 6 heads and were from another planet.

@VirtualLarry i meant paying 'sales tax' on my business email not income tax on resale. It's something NY rolled out late last year. They already started collecting sales tax on digital software too.

 

[VirtualLarry]

@VirtualLarry i meant paying 'sales tax' on my business email not income tax on resale. It's something NY rolled out late last year. They already started collecting sales tax on digital software too.

I'm still having trouble wrapping my head around that. This is a digital service, and not a physical item, thus, it's questionable whether that "item" is even "crossing state lines", but wouldn't you only have to pay "sales tax" on it, if Google has offices in NY? (They probably do.)

Still, pretty weird, and hard to wrap my head around. Do you have to pay "online sales tax" on Netflix streaming subs?

Edit: I thought that the Federal Gov't (legislature) extended the moratorium on "internet taxes". Wouldn't that trump state law on sale of "digital goods" over the internet? At least, as far as "sales tax" goes.

 

[paperfist]

I'm still having trouble wrapping my head around that. This is a digital service, and not a physical item, thus, it's questionable whether that "item" is even "crossing state lines", but wouldn't you only have to pay "sales tax" on it, if Google has offices in NY? (They probably do.)

Still, pretty weird, and hard to wrap my head around. Do you have to pay "online sales tax" on Netflix streaming subs?

Edit: I thought that the Federal Gov't (legislature) extended the moratorium on "internet taxes". Wouldn't that trump state law on sale of "digital goods" over the internet? At least, as far as "sales tax" goes.

https://alpin.io/blog/g-suite-begin-charging-sales-tax/

It doesn't matter in NYS anymore whether a company has a physical presence or not. It started first with voluntary sales tax collection on ANYTHING you bought. Even if I buy a piece of equipment in PA from someone on ebay or craigslist as a business I'm supposed to report it on my quarterly ST-100 filings. Then it started with them forcing Amazon to start collecting taxes on anything you bought, then software and now email services.

I am not sure about the Federal law trumping State on sales tax. All I know is I got audited a few years ago and they pointed out my failure to pay sales tax on some of the equipment I bought from ebay and craigslist.

lol I haven't checked on my Netflix account. Now I'm afraid to.