I have used PayPal to receive rover payments and then send them from PayPal to my bank account, and I was told I would get a 1099 from PayPal and I am awaiting their response, but has anyone done this before?
How will I know if I will need to submit a W-9 and receiving a 1099 ?
• If you’ve been paid out over $600 via check over the course of a calendar year, Rover will request a W-9 and will send you a 1099 tax form.
• If you’ve received $20,000 or more in payments via PayPal, then PayPal will contact you directly with details about your W-9 and 1099 forms.
• If you’ve received less than $600 via check or $20,000 via PayPal, you won’t receive a 1099 form from Rover or PayPal or be asked to submit a W-9.
No 1099 from paypal unless you make over $20,000.00, they do not report your income to the govt. :)
You really don't need a 1099 because you don't submit the form with your tax return, like you do with a W-2 from a regular employer. You just report the income you received. What I do is just tally up the payments made to Paypal from Rover for the year and put that on Schedule C.
I do that too, but I haven't received one yet if they do. In many ways, PayPal is just another bank account, so you should at least receive the same information from them that we get from the bank each year.