1099k, what happens with family and friends

[ACodgerRan654]

question, new IRS rules, 1099k.  WHAT HAPPENS with family and friends?  I set up a paypal account to use to give the grandkids some christmas gifts.  all are family.  but i did not realize that this might trigger a 1099k, and then if it is errant, and they have to document an exception on tax return, that makes it paper-fileable, and that creates disaster.

can anyone explain (possibly from paypal) what will  happen, for year-end 2022, for 1099k,and family/friend transactions?

AND, if a 1099k IS issued, where does it go on the form so that the IRS knows it WAS family and friends, and not a taxable transactin?

[ACodgerRan654]

hello, any feedback on this, any clarifications?

thanks

[PayPal_Olivia · Accepted solution]

Hi @ACodgerRan654,

Thank you for your post and for joining the PayPal Community Forum! I'll be happy to set your mind at ease regarding 1099Ks. Only Goods and Services payments are used when calculating a 1099K. You can learn more in this Help Center article.

I hope this helps!

Olivia

[ACodgerRan654]

thanks very much !!

[Patriceok]

How does PP calculate the total on the 1099 form and how do I see the transactions year to date that are included in the 1099 form?  I want to prepare if I am over the limit of $600.  I know I can download all my transaction monthly - but where is the YTD total?  How do I know which of the transactions are included?  Is it anything you created an invoice for and nothing else?  Is it just the $ amount of the goods sold?  Or do they include shipping totals?  I can’t find this basic information anywhere.  All I see is the verbiage that says they have to report anything over $600 - but what makes up what they report?