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This wasn't overly surprising, since I'd been expecting it.
But it really brought home an important point about this new form that the IRS expects: A lot of my income is going to be double-reported.
What is the 1099-K?
The IRS introduced the 1099-K a couple of years ago, but tax year 2011 the debut.
The idea is that third-party payment processors notably PayPal are required to report income from transactions handled.
The real targets are likely eBay sellers and others who make money each year with online auction sales, or other types of sales, and haven't been reporting their income.
This is where a home business owner, especially a freelance contractor like myself, runs into problems.
Double Reporting Income to the IRS Most of my payments are handled through PayPal.
It's easy, and it ensures that I get paid.
However, I fall into the requirements for reporting, and I have a 1099-K from PayPal.
Of course, since I provide services to clients as an independent contractor, these folks are issuing me another form: the 1099-MISC.
For a owner, this can result in headaches galore.
My clients are sending 1099-MISC forms.
Meanwhile, many of them have paid using PayPal.
So PayPal is also reporting that income.
Some of my income is double reported to the IRS, so it looks like I am making more money than I actually am.
Which means an audit red flag could be raised because what I'm reporting as income isn't going to match what the IRS thinks I'm making, due to the double reporting from kak oplatit v pay pal imeya wallet yandex money new 1099-K.
The result is that I am going to have to make sure I can match up which 1099-MISC forms come from people who pay me via PayPal.
That way, if there is a problem, I can prove that I really haven't made as much money as the IRS thinks I have.
It means extra work this year and probably future years for las vegas usa casino no deposit — and for my accountant.
Perhaps this situation can be resolved if I ask clients who pay by PayPal not to issue 1099-MISC forms.
One of my bigger clients already decided not to issue the 1099-MISC, preferring to let PayPal do it.
However, I don't know how that affects my clients and their efforts to report their expenses to the IRS.
At any rate, if you are a home business owner, and if you have received the 1099-K, you should go back through, and evaluate whether your income is being double reported.
Banks, PayPal and any other third-party payment processor are all required to issue https://us-park.info/bet-bonus/bonus-bets-luxbet.html forms, so you need to be on your toes, and know where all of your income comes from — and how read article clients and customers pay you.
Then, reconcile it all, and make a note of what income is being double-reported.
Written by Miranda Marquit Miranda Marquit is a freelance writer and professional blogger, specializing in personal finance, small business, and investing topics.
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Wish I had known!
Pretty much everyone else has issued me a 1099-MISC.
I think there is a lot of confusion about who is issuing what right now.
You can be in violation of IRS rules and also be penalized for not issuing the form along with not being able to claim the expense of the payment.
The correct tax preparation software can and should be able to work around this issue and help your client to NOT be double taxed.
Check with a tax professional before ceasing to issue this vital document.
To bad the honest tax payer gets caught in the cross fire kak oplatit v pay pal imeya wallet yandex money with proper information you and stay safe.
There is likely not a perfect answer this year due to what you have pointed out.
I would want to have the 1099-misc to show the IRS the source of true income.
The problem is that third party payment processors are issuing the 1099-Ks.
For independent contractors like myself, this creates a different situation.
PayPal is issuing a 1099-K because it has to as a third-party payment processor that facilitates most of my transactions.
At the same time, my clients are issuing 1099-MISC forms.
The result is that two different sources are reporting the SAME income.
Which means that it kak oplatit v pay pal imeya wallet yandex money like I made more than I did.
Yes, it will be possible to cross-reference the payments.
But it will require extra documentation kak oplatit v pay pal imeya wallet yandex money my part.
Curse you internet, I was agreeing with the problem you described, I was providing the likely best way to deal with it and to point out that the 1099-MISC is still required to be issued by your client s.
This will likely change, of course.
I ran into this when I was doing some bookkeeping for a client and just turned it over to the CPA to decide if to issue.
This is a confusing topic for sure.
On a side note, The purpose for the 1099-K was to help close the gap in lost taxes.
Howeverit is aimed only at the little guys.
For example, a person can have ten million dollars in sales within 150 transactions and have PayPal no bonus bet 10 deposit the processing and this person will not get a 1099-K Seems a little one sided to me… Hi!
I am freelance designer and get paid from one of my clients via PayPal.
PayPal is issuing the 1099-K because it handled the transaction.
Technically, your client should issue you a 1099-MISC.
If you are a sole proprietorship, the instructions for Schedule C indicate that you should report, for 2011, all your income, https://us-park.info/bet-bonus/best-way-to-play-online-slots.html line 1b.
The IRS ended up waiving the third party payment reporting, presumably to work out the issues associated with potential double-reporting.
So, enter all your income on Go here C.
Just report all of you income on Schedule C, and fill out the form as normally.
I reconcile it with my 1099 forms, but I always end up reporting more income than is reported to me on my collective 1099 forms.
I also suggest that you consult a tax professional.
I have an accountant do my taxes, since I am not a tax professional, and I might be wrong about some things.
I work as an independent contractor.
One of my clients said their bookkeeper would be mailing me a 1099.
After I failed to receive it, I emailed the bookkeeper directly last week.
She informed me that my client had not issued a 1099 because of the change in the law and that PayPal would be issuing it to me instead.
This was news to me, so I started looking online for more information.
I am confused as to how this document is sent.
Does it come in the mail, or do you download it from the PayPal site?
Meeting with my tax lady next week and not sure what to do.
It should come in the mail.
Avoid missing out the deadline on your 1099 forms.
For fillable 1099 forms or any tax form you need visit this website Download, edit, print, save, sign, email or even fax your tax form online.
This is happening to me now.
The IRS told me I would have to get in contact with the people who issued the 1099-MISC forms and have them state, on their letterhead, that they paid me via Paypal, and how much, for that tax year.
I agree that this is a huge burden because of the confusion surrounding the new policy.
You can also without commenting.

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I found out this also, the hard way.
I just started selling, and my first two kak oplatit v pay pal imeya wallet yandex money got put on "pending", and not available for me to use.
Why don't they tell people UP FRONT that they are doing this???
I'm into filing a complaint.
Let me know, we'll do a group filing.
Ivan I have kak oplatit v pay pal imeya wallet yandex money argueing with paypal over this issue till i'm pulling my hair out.
I have been a member of paypal for almost 4 years and never had any issue with my account.
I have 100% positive from eBay as well.
I finally decided that I was ready to start my own eBay Store.
And 2 days later, at my first sale of my new store, I cant get MY money.
That was 2 months ago.
The first lady I spoke to at pp took the hold off.
I have spoken to 5 or 6 others since then and sent email after email, but no luck.
I love eBay, and I love my own little store.
But everyday I find article source more and more doing business on Amazon.
I had to borrow money to pay my bills, they don't even let me pay for shipping but they do take their fees upfront.
I have been on the phone many times these past few days and they told me that 3 days after the packages arrives they will release my funds, it has been over a week and i still have no access to my money.
I just signed up with etsy.
I also learned the hard way.
I should have stuck with Amazon!
Welcome to ebay people the started this policy a long time ago.
Your fighting a up hill losing battle when it comes to ebay and paypal.
When they started this policy along with not letting sellers offer money orders and checks as a way to be paid except in ebay motor's, real estate, adult items and europe which won't allow ebay block checks and money orders.
I decided the best way was not to battle ebay but to simple side step them.
There are other ways that ebay allows payments where you don't have to use paypal.
One of them is opening a merchant account.
I take credit cards.
My auctions do not take paypal I take all major credit cards and that's how people pay me.
It takes paypal out of the picture.
I don't have a paypal account and I never will.
Feebay, sorryI meant to say Ebay, has turned into a money hungry corporation.
More concerned with charging 10% on transaction fees, and not to mention 2-5% on PayPal fees in addition, you have even started charging us the sellers for Shipping fees???
You take HONEST sellers kak oplatit v pay pal imeya wallet yandex money HOLD money for 21 days.
BAN THOSEWE LEAVE.
YOU LOST China, can not treat Americans like dirt.
We will not conform to your dictatorship auctionrude representativeshanging up on us and treating us like they do not want to take customer calls.
You are paying a call center for that right?
And you fees are way out of handas kak oplatit v pay pal imeya wallet yandex money your rules.
They seem to be very comdemming to the average person.
Take for instance single mommaking a living off Ebay above.
You are throwing the average guy out on the street again!!!
And at one time it was all about a PEZ.
Ebay will mostlikely delete this.
However, the reason for holding YOUR money for 21 days, is not your feedback scores, your transaction historyor anything else.
Sorry guys - I have been selling on Ebay for over 10 years and I get my money from my sellers from Paypal in under 3 days in all instances.
Building a solid selling reputation is important to both sellers and buyers.
I do understand the frustration however.
I also sell on Amazon a lot and if you use Amazon's checkout system they hold your money for 2 weeks as well as you only get paid from Amazon every 2 weeks.
So not much difference there.
I've been selling on ebay for about 3 years, but more seriously since February.
I have never had a problem getting my money, bu then I generally leave a few hundred in my PP account at all times.
I'm going to assume that the biggest problem is that people want to draw their PP acct.

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