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Paying taxes with PayPal?

I'm having a hard time figuring out how to pay taxes for my Rover income. Rover says if you make over $600 and withdraw via check, then you fill out a W-9. However, I withdrew via PayPal, which says you receive a 1099-K if you exceed $20,000 in gross payment as well as 200 payments for goods and services. This information seems to be directed toward merchants, so I'm not sure if the criteria is different for non-merchants. Either way, I have not made that much nor have I received that many payments, so does that mean I have no taxes to pay? If so, why do people withdraw via check from Rover in the first place?

I know Rover doesn't answer tax questions, but this is a somewhat specific question that I can't find a solid answer/response to. I may call PayPal to double check, but was wondering if any other sitters are in the same boat.

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I also need to know this so will be checking back to see what kind of answer you get!

Kay J.

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Darla T.

Yes , I have the exact same problem. i just asked the question here how do I show proof of income and nobody has the answer for me. Meanwhile I'm losing discounts I should have received from programs to help people with low income. Really frustrating.

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No, your problem is not the same. They are asking about doing taxes; you need to show your income for another purpose. See if they will accept a copy of your individual tax return as proof.

Karen R.

But i do have the same problem as well. I dont know how to do my taxes. I dont have a 1099 and i didn't know how to get it either. I didn't do my taxes last year. Before you say anything about that I am currently in serious debt to them ever since my husband took off leaving me with all his debt.

Darla T.

You can get a 1099 from the IRS website along with directions on how to fill it out. You can deduct your mileage on this form as well. I recall using this in addition to a 1040 when I did my taxes at the beginning of 2017.

Emily K.

What about schedule C? Thanks for the info.

Darla T.

No one needs a 1099 for Schedule C. It doesn't have to be attached like a W-2 to Form 1040. You fill out your earnings and business expenses on Schedule C. You can find the Instructions for Schedule 6 at the IRS site.

Karen R.

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Karen R.

Book a Stay
Chicago, IL

You report your earnings on Schedule C , which doesn't require attaching a 1099. Read the instructions for Schedule C and keep good records of earnings, as well as deductions.

Do a search here for "taxes." Cari usually provides the most detailed and accurate responses.

FYI, not all people have Paypal or want to use it. That is why a check option is provided.

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Is this how you've done it previously? It says a Schedule C is used to "report income or loss from a business you operated or a profession you practiced as a sole proprietor." I see Cari's comments, thank you for pointing me in her direction! Just want to get this right!

Emily K.

Yes, you are an independent contractor. You do not work for Rover. This is a business you operate. You are using Rover to get clients as well as certain general business services, like the backup, insurance, etc.

Karen R.

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Cari C.

The others are correct. You report your income and expenses on schedule C. You don't need the actual form.

And thanks for the compliments! I'm no expert, but I have been an IC (independent contractor) for over 10 years so I am quite familiar with filing taxes and Schedule C.

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Moureene T.

There is a tax thread on here somewhere with some great suggestions. Some might answer some of your questions or questions you hadn't thought about. There was a discussion on the thread about how to pay quarterlies and good record keeping.

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Paying taxes with PayPal?

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