PayPal’s limit for sales before you had to report for taxes was $20,000. Im at around $12,000 before my ebay account switched over to managed payments in June/July. Do the managed payment sales combine with the PayPal sales for the year or are they separate?
I believe they are separate however I am not on managed payments so I don’t know what their threshold is.
I believe they’re separate. The following paragraph is from the IRS website
Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:
- from payment card transactions (e.g., debit, credit or stored-value cards), and/or
- in settlement of third-party payment network transactions above the minimum reporting thresholds of –
2a. gross payments that exceed $20,000, AND
2b. more than 200 such transactions
And because your first 12k is technically processed by Paypal (though eBay knows about it), it should be counted separately with the amount that’s actually processed by eBay.
Makes sense and that’s sorta what I was thinking too. So basically managed payments is a fresh $20000?
I think so.
Remember that even if you don’t hit the number to receive a 1099 you are still supposed to be paying taxes…
I was wondering if anybody else had anymore information/input about this?
Your best bet is to contact ebay and ask.