When does Paypal start to send you tax papers?

Z@ck: When does Paypal start to send you tax papers?
I heard after you get like $ 500, paypal sends you tax papers? Is that true and is it after 500 or more that they will send you the tax papers. Thanks for your answers.

Answers and Views:

Answer by cs
Tax papers?

>”I heard after you get like $ 500″

You heard, from whom?

Why don’t you ask PayPal?

Answer by TROJAN
PayPal is basically a money transfer service allowing you to send money to sellers or receive money from buyers. It’s a little like Western Union. Why would they send “tax papers”

Answer by keithgormezano
The only time I got a 1099 form from PayPal was when I earned interest. Is that what you are referring to? If so, you have a long way to go at their current interest rate.

I wonder if you are thinking of eBay. Under some new IRS rules, if you earn more than $ 600, they may have to sent you a 1099 form reporting that income. This is the same rule that applies to any business that pays an ordinary vendor or service provider who is a LLC or a sole proprietor.

Answer by hrblockerrolquinn
Dear Z: I have used PayPal for many years and have never recd any type of tax papers.

$ 500 what – Interest? Profit?

You will be responsible for the calculation of any profit/loss.

This advice was prepared based on the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent.

Answer by the tax lady
Because so many sellers *forget* to include their income from eBay, the IRS now has form 1099-K to report the transfer of money by paypal and/or credit card companies.

Starts in 2011.