Hello everyone, I have a few questions about the 1099-K form sent at the end of the year if someone can kindly clarify. I know this topic may be beating a dead horse, but I couldn't find any exact clarity on some key points. From what is listed on PayPal's website: PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year: $20,000 USD in gross payment volume from sales of goods or services in a single calendar year 200 payments for goods or services in the same year* Question 1) I use PayPal exclusively to sell on eBay. Since this starting year (January 1st, 2021), I have gross $22,000 in eBay sales. However, the number of items that I sold on eBay only accounts for 100 transactions (I sell laptops/phones that can each be pretty spendy). ASSUMING I stopped selling right here and right now, although I got >$20,000 in payments to my PayPal account, BUT because I only had 100 sales transactions, does this mean I do NOT get a 1099-K? Question 2) The 2nd bullet point says "200 payments for goods or services", as I eluded to in Question 1, I sold 100 laptops/phones in the last 3.5 months since January 1st, 2021. BUT, I also pay for my shipping labels through PayPal, so that is another 100 transactions I suppose through my PayPal. Does that account for the "200 payments for goods or services"? Or do they only look at the positive (+) green cash flow that is going INTO the account to count towards the "200 rule", as opposed to the (-) payment transactions such as shipping labels? Question 3) To quote PayPal's first bullet point, "in a single calendar year", does that mean starting January 1st 2021 all the way through the end of December 31st, 2020 is what they look at to determine 1099-K eligibility? Additional information, I live and sell in WA state. I only have 1 PayPal account and 1 eBay account. Thank you in advance to all that can help!
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