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Everyone using PayPal (1099-K)...

limsy
Rewards Guide

Just found this article...not really good news for some...

PayPal Quietly Toughens Their 1099-K Issuance Policy

...change PayPal made for the year 2020 and beyond as they broadened the scope of 1099-K issuance to include MassPay payments received, such as payments you’ll receive from Swagbucks, Topcashback, Cardcash, Vivid Seats, Mypoints, Ysense, Cardcash, Ibotta, Dosh, etc

The form 1099-K is for payment processing companies to report those who received more than $20,000 in payments AND had 200+ transactions throughout the calendar year.  In Vermont, Maryland, Virginia, and Massachusetts the threshold for mandatory 1099-K is just $600 in payments with no minimum transaction amount. In Illinois the threshold is three transactions AND $1000 of payments.

https://www.doctorofcredit.com/paypal-quietly-toughens-their-1099-k-issuance-policy/

6 Replies

Re: Everyone using PayPal (1099-K)...

mmoore01
Rewards Whiz

I guess I should be glad that Florida doesn't have a State Income Tax.

Re: Everyone using PayPal (1099-K)...

RachelO
Rewards Hunter

Florida just keeps looking better and better to this Pennsylvanian. 

Re: Everyone using PayPal (1099-K)...

kamartin1
Skilled Saver

@mmoore01 

TN doesn’t have state income tax either, but they are getting very aggressive with online transactions and with small businesses in this state!

0 Likes

Re: Everyone using PayPal (1099-K)...

Sorensoj
Skilled Saver

So if a person withdraws from Ibotta directly to a bank account, then PayPal is omitted from the equation.  

Re: Everyone using PayPal (1099-K)...

FelskyNY
Deal Master

I know Field Agent gives out a 1099 when you hit $600 (I think).  I just started using it in late 2020 so it hasn't affected me yet.

Re: Everyone using PayPal (1099-K)...

mmoore01
Rewards Whiz

This is another reason to buy gift cards with Ibotta earnings instead of PayPal.