Paypal Reporting Income To IRS Starting 2022

[Njsurveyman]

Starting this year (January 2022) Paypal is now required to send you a 1099K tax form if you make over $600. This would most likely include everything you make from surveys altogether. Therefore I strongly suggest keeping track of every payment received from paypal and keep a running total going so that you do not go over. Paypal doesn't show you how much you received in a given year, so it is up to you to keep track. 

[Steve2021]

This is really outrageous.   What happens if you already get a 1099 form from the survey company that is paying you for anything over $600?  That money is transferred to a Paypal account.  Isn't that going to be double counting of earnings?

[Sandy21]

3 hours ago, Njsurveyman said:

Starting this year (January 2022) Paypal is now required to send you a 1099K tax form if you make over $600. This would most likely include everything you make from surveys altogether. Therefore I strongly suggest keeping track of every payment received from paypal and keep a running total going so that you do not go over. Paypal doesn't show you how much you received in a given year, so it is up to you to keep track. 

Thanks so much for the heads up!

[Sandy21]

2 hours ago, Steve2021 said:

This is really outrageous.   What happens if you already get a 1099 form from the survey company that is paying you for anything over $600?  That money is transferred to a Paypal account.  Isn't that going to be double counting of earnings?

You make a very good point!

[jjklavins]

All peer-to-peer payment sites are now required to report commercial transactions exceeding $600 per year - payments by you are not affected, only cash sent to you.

Selecting the Amazon gift code option and accumulating survey rewards in your account is a better choice - gift card balance does not expire, no fees, no IRS reporting.

 

 

[dawn_b_adams]

That's good to know. I've never made over $600 with any one survey site, but combined I believe I'm getting about $1000-$1200/year from my combined survey sites/mystery shopping/GPT sites. I will need to cut back significantly on what I'm doing.

[NFriday]

I never do a pay pal survey.  I always do Amazon.  I can always find things on Amazon that I need.  I just recently spent $600 in Amazon.  I bought a $299 printer, an ergonomic keyboard, a computer mouse, a book, a frying pan and a few other things that I mostly really needed.  Now I just have $69 left in my Amazon account, and so I need to do some more surveys.  BTW-Amazon is going to start charging $139 for Prime soon.  I think it goes up on 2/18.

[Njsurveyman]

Just a FYI, the reason for this new Paypal rule is directly part of Biden's CARES ACT. Yes, it would be a smart idea to opt for gift card rewards rather than Paypal, especially as you approach the $600 limit. 

Yes, if you already get a 1099 from a survey company, you CAN indeed be double taxed. This is not technically legal, but the current administration in charge doesn't seem to care about that. BUT, technically in the past, everyone should have been reporting their cummulative paypal income on their taxes all along. I guess since so many folks are not reporting this, they decided to start requiring it this year.

[Diana9017]

Can someone explain what this means exactly? I'm confused. I'm based in UK. Does this apply to those just in US or everyone who uses PayPal? 

Not sure what the consequences for this is, if we then go above that then what.... We can no longer longer cash out? Can someone please kindly break it down please. 

[NFriday]

This does not pertain to people in the UK.  I hope that somebody that is in the UK will be more explicit about what is required over there.  Do people in the UK have to pay taxes on their earnings?

[Diana9017]

11 hours ago, NFriday said:

This does not pertain to people in the UK.  I hope that somebody that is in the UK will be more explicit about what is required over there.  Do people in the UK have to pay taxes on their earnings?

Yes, of course we do lol. But I think we're slightly different because PayPal here isn't used for same purposes as in US. Like I think the majority of what it's used for is Ebay sellers, and buying online, plus sending money to family or friends. I don't think it's used for businesses where people pay into if that makes sense, plus survey taking in UK isn't classed as earnings in same sense as wages or salaries. I'm not that clued up sadly but I think businesses in US tend to use PayPal for payment from clients maybe.... If there is someone from UK who knows more and can explain better...? 

[somelady]

This is nothing new, companies always had to report $600 earnings. Paypal notified me earlier in 2021 that I was approaching the $600 mark from Prolific and I had to fill out the form. The problem I have is that they inflated mt earnings, including places other than Prolific and adding non existent earnings of about $2.50 per month. I am going to call them to get this straightened out. 

I am pretty sure they shouldn't add earnings from other places because the rule is $600 from one place. If the other companies paid me a total of $600 each that would/should be a separate 1099 for each of them.

[Avemaria92]

On 2/4/2022 at 10:55 AM, Njsurveyman said:

Starting this year (January 2022) Paypal is now required to send you a 1099K tax form if you make over $600. This would most likely include everything you make from surveys altogether. Therefore I strongly suggest keeping track of every payment received from paypal and keep a running total going so that you do not go over. Paypal doesn't show you how much you received in a given year, so it is up to you to keep track. 

So it's all income sent to Paypal starting January 2022?

[Njsurveyman]

On 2/14/2022 at 3:41 AM, somelady said:

This is nothing new, companies always had to report $600 earnings. Paypal notified me earlier in 2021 that I was approaching the $600 mark from Prolific and I had to fill out the form. The problem I have is that they inflated mt earnings, including places other than Prolific and adding non existent earnings of about $2.50 per month. I am going to call them to get this straightened out. 

I am pretty sure they shouldn't add earnings from other places because the rule is $600 from one place. If the other companies paid me a total of $600 each that would/should be a separate 1099 for each of them.

This is indeed NEW. It was part of Biden's CARES Act. Prior to 2022, income was only reported if you made over $600 from ONE individual company. For the first time this year it will be cumulative from ALL income sent to your Paypal account (unless a friend sends you money and specifically indicates the money is to pay you back for something and not for a sale item). Many folks on here have made way over $600/year from all survey companies combined and never received a 1099 from Paypal. That is chamging this year. I am cutting down significantly on surveys this year and most likely will opt for Amazon GC instead once I start getting closer to the $600 cumulative amount. 

[yobry1]

That's BS. I don't use paypal very often to cashout so it's no problem for me. I cashout with walmart and amazon giftcards thru the year and save most of them up for Birthday and Christmas gifts otherwise I couldn't afford to buy anythng for ppl. I also don't like the idea that if I sell a used item on ebay that I bought new, and used it, then i sell it, it shouldn't be included as income as the item has already been sold to me to use, therefore I'm only selling it to some one else so they can get the rest of the use out of it before it's no longer usable. Selling my USED items are NOT INCOME.