1099K? I don't even have a business.

[joejccva71]

I paid in advance for a trip to Florida for me and my friend.  Her share was $1500.  I paid it for her and she paid me back through paypal.  

Why am I receiving a 1099K?  This is a personal account and don't even own a business.  She was just paying me the money back.

[sharpiemarker]

@joejccva71

The payment was might have been sent as a goods and services payment instead of personal payment. And in some States (VT and MA), the threshold to receive the 1099K is $600. It doesn't matter if you have a personal or business PayPal account.

[joejccva71]

Can they fix this?  The person that sent the money to me can verify that it wasn't for goods and services, it was just paying me back for a trip that i paid for in advance.

[sharpiemarker]

@joejccva71

But then again, you'd have to meet both thresholds: 200 transactions and over the $600. 

Contact PayPal customer service to check if there was an error:

Click HELP at the top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.

Or private message via social media:

Facebook: https://www.facebook.com/paypal

Twitter: @AskPayPal 

[sharpiemarker]

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@joejccva71 wrote:

Can they fix this?  The person that sent the money to me can verify that it wasn't for goods and services, it was just paying me back for a trip that i paid for in advance.

---

I don't know if they can so it is best to call PayPal customer service. If you were charged a PayPal fee to receive the funds (click on the transaction for details), then your friend indicated that the payment is for goods and services.

[joejccva71]

I just spoke to someone at Paypal.  They said that it's up to the IRS on whether or not I have to pay taxes on this.  I tried to explain that I can have the other party verify that this wasn't for goods and services, it was to pay the money back to me for a Florida trip that I paid in advance for.   They said that it doesn't matter what the other party verifies, it's already done and it's now up to the IRS whether or not I have to pay the taxes on it.

I'm really confused.  

[pkraehn]

What happened with this? Did  you claim it or just let it go.  I have had the same thing happen to me this year.