PayPal 1099K Deadline - Was Jan 31 the cutoff date to receive them?
So I'm trying to finalize my tax filing for the year but I'm not sure if I should wait for a 1099K from PayPal or just go ahead with what I have. Yesterday was January 31st which I think is the deadline for them to send these forms out? I've been selling some handmade jewelry on the side and made about $780 through PayPal last year, but I haven't received any 1099K from them yet. I've already reported all my income on Schedule C (including what I made through PayPal) because I keep pretty detailed records of my sales. I'm just worried that if I file now and then get a 1099K later, there might be some discrepancy or I'll have to file an amendment. Anyone know if I should just go ahead or wait a bit longer? I'd really like to get my refund processed sooner rather than later.
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StarStrider
You're right that January 31st is generally the deadline for companies to issue 1099 forms, including 1099-K forms. However, there are a couple of important things to know in your situation: First, for tax year 2024 (what you're filing in 2025), the reporting threshold for 1099-K is $5,000, not the $600 threshold that was originally planned. Since you mentioned making about $780 through PayPal, you're well under that threshold, which means PayPal is not required to send you a 1099-K. Second, even if you don't receive a 1099-K, you're still legally required to report all your income - which it sounds like you've already done correctly on your Schedule C. The 1099-K is just an information reporting form, not a determination of your taxable income. If you've already included all your income on your tax return, you should be good to file without waiting. The IRS matches the information they receive, but they're looking at the totals you report, not whether each individual transaction has a corresponding form.
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Zara Malik
•Wait so the threshold is $5,000 now? I thought it was supposed to be $600 starting in 2022? I'm confused because I made about $2,300 selling stuff online last year and was expecting a 1099K but haven't gotten one.
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StarStrider
•The threshold change has been a source of confusion for many people. The IRS originally intended to lower the threshold to $600 starting with tax year 2022, but they've delayed implementing this lower threshold multiple times. For tax year 2024 (filing in 2025), they settled on a $5,000 threshold as a transition step. You're correct that there was a lot of talk about the $600 threshold, but it hasn't actually gone into effect yet. That's why with your $2,300 in online sales, you won't receive a 1099-K for this tax year. However, you still need to report that income on your tax return, typically on Schedule C if it's a business activity or Schedule D if you're selling personal items for more than you paid for them.
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Luca Marino
I was in the same boat as you last year and discovered taxr.ai (https://taxr.ai) which really helped me figure out my reporting obligations when I wasn't sure about my 1099-K situation. I sell vintage clothing online and was getting conflicting info about what PayPal would be sending me. The tool actually analyzes your specific situation and lets you know what forms you should expect and when, plus what to do if something seems missing. It saved me from filing an amendment later because I would have otherwise missed some income that wasn't on a 1099 but I still needed to report. Since you've already tracked your income carefully, you might not need it this year, but it's super helpful for double-checking everything before you file, especially with all these threshold changes happening.
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Nia Davis
•Does it work for other payment processors too? I use Venmo and Cash App for my side business and I'm totally lost on what I'm supposed to receive from them.
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Mateo Perez
•I'm kinda skeptical about these tax tools. How is this different from TurboTax or H&R Block that already check this stuff? Seems like just another expense when filing is already expensive enough.
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Luca Marino
•Yes, it absolutely works with Venmo, Cash App, and pretty much all the major payment processors. It's particularly useful for people using multiple platforms since it helps ensure you don't miss anything across different services. It's actually quite different from TurboTax or H&R Block. Those services help you file your taxes, but they don't specialize in analyzing your specific payment platform activity. Taxr.ai specifically focuses on reconciling your digital payments and helping you understand what forms you should expect to receive. It's more like a pre-filing check to make sure you have everything you need before you go to those tax filing services.
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Nia Davis
Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it was seriously helpful! I uploaded my Venmo and PayPal transaction histories and it clearly showed what would and wouldn't generate a 1099-K based on the current thresholds. Turns out I was under the reporting requirement for both platforms but still needed to report about $4,200 in business income. The best part was it helped me categorize which transactions were actually business income vs. personal transfers (like friends paying me back for dinner) that don't count as income. Saved me from either over-reporting or missing something important. Definitely using this before filing from now on!
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Aisha Rahman
If you're still waiting on tax documents or need to talk to someone at the IRS about reporting requirements, I highly recommend using Claimyr (https://claimyr.com). I was pulling my hair out trying to get through to the IRS about a missing 1099 situation last month - kept getting disconnected after waiting on hold for 45+ minutes. Claimyr basically holds your place in the phone queue and calls you when an actual IRS agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was honestly shocked when they called me back with an IRS person ready to talk. The agent was able to confirm what forms I needed to wait for and which ones I could proceed without. For my situation with missing 1099s, this saved me weeks of uncertainty and helped me file on time instead of having to file an extension.
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CosmicCrusader
•How exactly does this work? I'm confused how a third party service can somehow get you through to the IRS faster than calling them directly.
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Mateo Perez
•This sounds like complete BS honestly. The IRS phone system is notoriously terrible. You're telling me some random service can magically get through when millions of taxpayers can't? I'd be very careful about giving any personal info to services like this.
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Aisha Rahman
•It's actually pretty straightforward. They use automated systems to continually dial and navigate the IRS phone tree until they get through to an agent. When an agent answers, they connect that call to your phone number. You're not jumping the queue - they're just waiting in it for you so you don't have to sit there listening to hold music for hours. I completely understand the skepticism - I felt the same way! But they don't ask for any tax details or personal information other than your phone number to call you back. They're just providing the connection to the IRS - once you're talking to the agent, it's a direct conversation between you and the IRS representative. I was skeptical too until I tried it and had an IRS agent on the line within about 2 hours instead of spending my entire day trying to get through.
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Mateo Perez
Well I have to eat my words about Claimyr. After posting my skeptical comment, I was still struggling to get through to the IRS about a question related to my missing 1099-K (similar to the original poster's situation). I decided to give Claimyr a shot as a last resort. Not only did they get me through to an IRS agent, but I got the call back in about 90 minutes which saved me literally hours of hold time. The agent confirmed I don't need to wait for a 1099-K from PayPal since I was under the threshold, and I can go ahead and file with the income I've already tracked myself. For anyone else waiting on hold with the IRS or wondering about forms that haven't arrived yet, this service is legitimately helpful. I'm not a tech person at all but it was super easy to use.
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Ethan Brown
I'm in a similar situation but with Etsy rather than PayPal. Made about $3,700 last year and no 1099K yet. Based on what others have said here, I guess I'm under the threshold too? Just to be safe, I'm reporting everything on my Schedule C anyway since I have all my records. One tip though - check your PayPal account online. Sometimes they make the 1099K available electronically before sending the paper version. Go to the tax documents section in your account settings.
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Yuki Yamamoto
•Does anyone know if the threshold is per platform? Like if I made $3,000 on Etsy and $3,000 on PayPal, is that still under the $5,000 threshold since they're separate platforms?
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Ethan Brown
•Yes, the threshold applies separately to each payment processor. So if you made $3,000 on Etsy and $3,000 on PayPal, neither would be required to issue a 1099-K because neither one individually crossed the $5,000 threshold. However, you still need to report the total $6,000 as income on your tax return. This is one of those situations where the reporting requirements for the companies don't align perfectly with your tax obligations. You're always responsible for reporting all your income regardless of whether you receive a tax form for it.
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Carmen Ortiz
I waited until February 15th last year before filing because my PayPal 1099K came super late despite the January 31 deadline. Some companies just don't meet the deadline and there's basically no consequence for them. So frustrating!
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Andre Rousseau
•If you're worried about filing and then getting a form later, you could always file an extension. Gives you until October to file your actual return, though you still need to pay any taxes you estimate you owe by April 15.
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