1099K

[esn1988]

New (ish) to paypal. Use the account to receive payments from grocery shopping rebate apps, like ibotta. Paypal issued me a form 1099K for my rebate app payments. I did not sell anything. How does paypal make the determination as to what they think is a good or service? TIA

[PayPal_Olivia]

Hi @esn1988,

Thank you for your post. I'll be happy to provide some clarification.

It sounds like the rebate app payment company is sending these payments as goods/services payments. PayPal is beholden to issue a 1099-K for goods and services payments that meet or exceed certain thresholds. For federal reporting, the threshold is a total volume of $20,000 or more over 200 or more payments. In Vermont and Massachusetts, additional requirements exist, and any number of payments totaling $600 or more will cause a 1099-K to be generated.

I hope this helps!

Olivia

[cbear]

So we have to pay taxes on ibotta and grub hub?  What the heck paypal!  I would have been UNDER 20K if that had not happened.  I am closing my paypal account!  **bleep** this