1099k

[Conte613]

When someone goes over a state threshold for 1099k- does PayPal send the form to both federal and state? I know you have to report regardless, but a few years ago I received one because I went over the state limit but the irs had no record or form and it is not in my federal transcript. Just seems like a giant mess and the country should have a singular threshold.

[PayPal_Meghan]

Hello @Conte613, 

Welcome to the PayPal Community! 

I apologize for the confusion caused by the 1099-K reporting thresholds. If you've surpassed your state's reporting threshold, PayPal must report your income directly to the IRS. For the majority of the US, the reporting threshold for 2023 was $20,000 and 200 more than Goods & Services transactions. However, for the states of Vermont, Massachusetts, Virginia, and Maryland, income has to be reported if $600 USD in gross payment volume was met. 

You can review the different reporting thresholds to determine if you'll receive a 1099-K in this Help Center article: Will PayPal report my sales to the IRS? As of the 2024 tax reporting year, the IRS has changed the reporting threshold so that all states will have the same reporting requirements of $600 USD in gross payment volume. 

I hope this helps! 

- Meghan

[Conte613]

Here is where it is confusing for me. The article you posted lists 4 states in which PayPal will report 1099k to IRS. Other states have lower thresholds than federal and some are even listed on other sections of tax section. But does PayPal send 1099k to irs only to those 4 states and the other states with lower thresholds are sent to state taxing authority? Because last year there were again those 4 states listed and other states had a lower threshold. What is it specifically about those 4 states even though other states have a lower threshold as well? Thank you!

[PayPal_Meghan]

Hi @Conte613, 

Thanks for reaching back out! 

I apologize for any confusion. The 1099-K is a report of gross payments received that's sent to the IRS only. You will want to consult with a professional tax advisor to find out how you should report the income when filing state and federal taxes. I'm sorry, but I am unaware as to why some states have lower thresholds for reporting than others. You can find more information regarding 1099-Ks on our Help Center here. 

Have a beautiful day! 

- Meghan

[Conte613]

Thank you. Has the forms for this year been sent out yet? I see a lot of people commenting they have received one and the deadline is tomorrow. Should we expect more and if not issued by tomorrow contact PayPal or maybe we just don’t qualify?

[PayPal_JonK]

Hello @Conte613, 

Great question! You should expect to see your 1099k soon if you haven't already. They are normally generated and mailed out on or before Jan 31. If you haven't received one by Feb 1, that normally means your payments received and / or the gross amounts received on your account did not meet the thresholds to generate a 1099k. 

I hope that helps!

 - Jon K

[Conte613]

So it’s obviously past January 31- it’s February 2 and nothing is in my tax section online. So I guess I didn’t qualify and will have to add everything myself. Thanks for your help.