The Form 1099-K that you receive is based on your primary address on the last day of the previous tax year. Vermont, Massachusetts, Virginia, Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions. If you live in the following US states, you’re subject to a lower reporting threshold: $600 USD or more in gross sales from goods or services in the calendar year.įor residents in Vermont, Massachusetts, Virginia, or Maryland More than $20,000 USD in gross sales from goods or services AND more than 200 transactions in the calendar year. It’s always best to speak with a tax professional for any specific concerns you may have. Although this transaction is reportable by PayPal, it’s possible that the transaction is not taxable. This requirement applies once you receive $600 USD or more from this type of payment. PayPal tax reporting is required when the sender identifies the product as goods and services to the IRS, even if it was a mistake.Previously, a 1099-K is only required when a user receives more than $20,000 USD in goods and services transactions and more than 200 goods and services transactions in a calendar year. 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, to report goods and services transactions paid to customers with $600 USD or more in annual gross sales on 1099-K forms.
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