PayPal fees

[Gary Lauer]

I am in the process of purchising a electric hydro. I am using paypal but dont want to use friends & family what percent extra should I include to cover the fees?

 

[Bruce Jacobs]

3.5%

 

[BigChuck]

And get ready for the 1099 to show up...

 

[Wally Duarte]

If you exceed $600 in sales transactions

 

[Danny King]

If you exceed $600 in sales transactions

Right for the whole year not in 1 transaction.

 

[nitroracer]

Hi Go to E transfer we use it in Canada.so far no fees and I have order parts in USA. who have set it up with there bank. I stop use pay pal with fee keep going up.
Ed

 

[timothy johnson]

From what I've read so far no body knows how this scheme is going to work. Is Pay Pal going to look at my transactions for the year and just determine that everything I sold was for profit for my non business account. That's a joke !!! If you have a business account with Pay Pal that may be a different story. We're buying and selling used things for the most part. Let's just wait and see how this BS works .

 

[Raydee]

You will receive a 1099 and it will be up to you to itemize each item you sold showing that you sold for a loss. Total Gov corruption at its best.

 

[RalphFichtl]

paypal fee calculator
https://thefeecalculator.com/

 

[timothy johnson]

By the way PayPal has posted a lengthy overview of the new law in which they advise that some members may be contacted to provide their social security #. If you get that msg I would think for sure your going to get a 1099K.. Time will tell.

 

[Wesleys Custom RC]

Right for the whole year not in 1 transaction.

It's my understanding that they stuck an amendment in the last omnibus bill making any 600. Any transaction. I've heard it's gonna put many small banks out of business with mounds of paperwork.

 

[Don Ferrette]

It's my understanding that they stuck an amendment in the last omnibus bill making any 600. Any transaction. I've heard it's gonna put many small banks out of business with mounds of paperwork.

The $600 per transaction was buried in Biden's "covid relief" package in 2021, it took effect Jan. 1st of this year. Any peer to peer transaction (Paypal, Square, Venmo, CashApp etc.) over $600 will qualify for a 1099k unless it is friends/family but even those will be subject to scrutiny. They (Congress) are currently trying to undo that as they've realized it's a logistical nightmare but can't agree on new amount. Republicans want it to go back to the original 20k annual threshold but Dems want it 5 or 10k. It is not going to happen in time for the 2022 tax year but hopefully fixed for 2023. In the meantime keep all your transactions under $600 if you can (like splitting up payments) and hope for the best........

 

[Danny King]

It is $600 in annual gross sales not each transaction over $600.

 

[Danny King]

This is from PayPal’s page. It is BS as 90% of what we sell is for less than we paid. But hey Biden said if you make invader $400k you won’t pay more taxes. Lmao
This change was introduced in the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require Third-Party Settlement Organizations (TPSOs), like PayPal and Venmo, to report goods and services transactions made by customers with $600 or more in annual gross sales on 1099-K forms. Currently, a 1099-K is only required when a user receives more than $20,000 in goods and services transactions and more than 200 goods and services transactions in a calendar year.

 

[Carl Van Houten]

When you start receiving money that totals over $600 per year, that's where they will send you the 1099. I have way exceeded the $600 income this year but have all but stopped using it. At the end of this year I will unplug my account with them as many of my friends have already done. They can stick it!

 

[Don Ferrette]

This is from PayPal’s page. It is BS as 90% of what we sell is for less than we paid. But hey Biden said if you make invader $400k you won’t pay more taxes. Lmao
This change was introduced in the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require Third-Party Settlement Organizations (TPSOs), like PayPal and Venmo, to report goods and services transactions made by customers with $600 or more in annual gross sales on 1099-K forms. Currently, a 1099-K is only required when a user receives more than $20,000 in goods and services transactions and more than 200 goods and services transactions in a calendar year.

That 20k/200 transactions number was history as of 1/1/2022, business transactions totaling over $600 for goods or services gets reported to the IRS-
What you need to know: The IRS is tracking payments over $600 on Zelle, Cash App, Paypal and Venmo

 

[Don Ferrette]

It is $600 in annual gross sales not each transaction over $600.

Yes but if you keep them under $600 and done as F&F it makes a huge difference. Even though they say F&F is excluded many tax specialists are saying an F&F transaction over $600 can still be reported and then it's up to you to explain that it wasn't for goods or services.............

 

[Danny King]

We shall find out. But I dont have any faith in that. This is purely a power grab and an open door reason for audits.

 

[Don Ferrette]

We shall find out. But I dont have any faith in that. This is purely a power grab and an open door reason for audits.

And why Biden got money added in the "inflation relief act" (LMFAO) for 87,000 new IRS agents.......

 

[Daniel's Racing]

The $600 replaced the $20,000

It is a $600 total sales combined threshold. If you exceed $600 by $.01 and all/every one of your sales are reported.