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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2605
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have an online business and I receive payments through

Customer Question

Hi! I have an online business and I receive payments through Paypal
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I receive my payments through Paypal, but I have not met the $20k a year AND 200 transactions threshold for Paypal to notify the IRS and give me a 1099-K. I've heard rumors about this being a loophole that I can take advantage of, and I want more information about that
JA: Is there anything else important you think the Accountant should know?
Customer: I don't think so
Submitted: 3 months ago.
Category: Finance
Expert:  ABC Accounting Group replied 3 months ago.

Hi. Great Question. If you received income from sources, such as consulting, etc., the IRS requires you to either in Miscellaneous income or on a Schedule C. If it is from a sale of goods - you would take the net (what you sold it for, less what your cost of the product was). All income (unless tax-exempt) is reportable on your 1040.

Expert:  ABC Accounting Group replied 3 months ago.

Let me know if you have any questions. Thank you.