Finally got a 1099 the other day from paypal (first one ever). Now I have to
go to an actual tax place. Yay.
Which also means less orders as well from buyers.
:
And the 2024 tax year is what the IRS terms as a 'transition' year for
1099K third party reporting, with a $5,000 threshold. Transition, as in from
the former $20,000 to the new $600 reporting threshold set for 2025.
In other words, a lot of 1099Ks being received next year.
Finally got a 1099 the other day from paypal (first one ever). Now I have to
go to an actual tax place. Yay.
Which also means less orders as well from buyers.
:
And the 2024 tax year is what the IRS terms as a 'transition' year for
1099K third party reporting, with a $5,000 threshold. Transition, as in from
the former $20,000 to the new $600 reporting threshold set for 2025.
In other words, a lot of 1099Ks being received next year.
First year getting one. I was talking with another seller about this the other
day and we noticed that the total in Line 1a/b is higher than what actually received.
Line 3 also seems to be a smidgen higher. Am I safe to assume that the 1099K
includes cancelled orders and lines 1a/b do not subtract full or partial refunds?
I can't verify this since I excluded cancelled orders when I downloaded
the orders throughout the year.
First year getting one. I was talking with another seller about this the other
day and we noticed that the total in Line 1a/b is higher than what actually received.
Line 3 also seems to be a smidgen higher. Am I safe to assume that the 1099K
includes cancelled orders and lines 1a/b do not subtract full or partial refunds?
I can't verify this since I excluded cancelled orders when I downloaded
the orders throughout the year.
Hmmm if that's the case then refunds should be counted as business expenses.
First year getting one. I was talking with another seller about this the other
day and we noticed that the total in Line 1a/b is higher than what actually received.
Line 3 also seems to be a smidgen higher. Am I safe to assume that the 1099K
includes cancelled orders and lines 1a/b do not subtract full or partial refunds?
I can't verify this since I excluded cancelled orders when I downloaded
the orders throughout the year.
Hmmm if that's the case then refunds should be counted as business expenses.
Correct but partial refunds are not in the downloaded orders unless i'm missing
something. not a major issue for me since its just a $1000 difference and i
can screen shot most of it, but the other gent somehow has 20x the difference
and doesnt do a lot of refunds.
Correct but partial refunds are not in the downloaded orders unless i'm missing
something.
I couldn't say - I have an entry in a Google sheet for every order so I typically
refer to that and only download to corroborate and get numbers on lots, etc.
not a major issue for me since its just a $1000 difference and i
can screen shot most of it, but the other gent somehow has 20x the difference
and doesnt do a lot of refunds.
Couldn't say here either. I did check my numbers for Jan 2024 (not other
months or 2024 as a whole) and the PayPal 1099 is correct to the cent.
Finally got a 1099 the other day from paypal (first one ever). Now I have to
go to an actual tax place. Yay.
Which also means less orders as well from buyers.
:
And the 2024 tax year is what the IRS terms as a 'transition' year for
1099K third party reporting, with a $5,000 threshold. Transition, as in from
the former $20,000 to the new $600 reporting threshold set for 2025.
In other words, a lot of 1099Ks being received next year.
First year getting one. I was talking with another seller about this the other
day and we noticed that the total in Line 1a/b is higher than what actually received.
Line 3 also seems to be a smidgen higher. Am I safe to assume that the 1099K
includes cancelled orders and lines 1a/b do not subtract full or partial refunds?
I can't verify this since I excluded cancelled orders when I downloaded
the orders throughout the year.
Yes I also noticed it might be higher as well.
Also I noticed that they include the shipping cost as well with the totals per
month? Each of the months seem higher than what I actually should have. Do they
not minus the shipping cost? Very confused.
Also I noticed that they include the shipping cost as well with the totals per
month? Each of the months seem higher than what I actually should have. Do they
not minus the shipping cost? Very confused.
Why would they subtract the shipping cost? What you are paid for S&H is income,
what you actually pay for shipping is a deductible business expense.
When looking at mine it seems the amount shown in column 1a is including everything;
shipping, taxes and all fees. So basically it's just a total of all payments
sent to you and you have to figure out how much you paid for the year in shipping,
fees and sales taxes.
When looking at mine it seems the amount shown in column 1a is including everything;
shipping, taxes and all fees. So basically it's just a total of all payments
sent to you and you have to figure out how much you paid for the year in shipping,
fees and sales taxes.
Great. Lots of time spent figuring that all out which I don't have with taking
care of my elderly mother.
When looking at mine it seems the amount shown in column 1a is including everything;
shipping, taxes and all fees. So basically it's just a total of all payments
sent to you and you have to figure out how much you paid for the year in shipping,
fees and sales taxes.
Great. Lots of time spent figuring that all out which I don't have with taking
care of my elderly mother.
download your orders for jan 1, 24 through dec 31, 24 and it will at least tell
you what you charged people for shipping. then you can request a year end report
from shipstation for what you actually paid.
Finally got a 1099 the other day from paypal (first one ever). Now I have to
go to an actual tax place. Yay.
Which also means less orders as well from buyers.
:
And the 2024 tax year is what the IRS terms as a 'transition' year for
1099K third party reporting, with a $5,000 threshold. Transition, as in from
the former $20,000 to the new $600 reporting threshold set for 2025.
In other words, a lot of 1099Ks being received next year.
Unless I’m reading it wrong, the IRS updated the threshold lowering schedule
again, so calendar year 2025 will have a $2500 threshold for required reporting,
and it will be $600 for 2026 and beyond.
Finally got a 1099 the other day from paypal (first one ever). Now I have to
go to an actual tax place. Yay.
Which also means less orders as well from buyers.
:
And the 2024 tax year is what the IRS terms as a 'transition' year for
1099K third party reporting, with a $5,000 threshold. Transition, as in from
the former $20,000 to the new $600 reporting threshold set for 2025.
In other words, a lot of 1099Ks being received next year.
Unless I’m reading it wrong, the IRS updated the threshold lowering schedule
again, so calendar year 2025 will have a $2500 threshold for required reporting,
and it will be $600 for 2026 and beyond.
Good to learn. Things are moving faster than imagined. There'll no doubt
be further "relief" more impactful adjustments to come, sooner rather
than later.
USA, Michigan
" more impactful adjustments to come, sooner rather