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Pay Pal doesn't report income to the IRS if under $20K or 200 transaction?

taxes
sitter

I am looking for clarification on income reported to Pay Pal. I just started House/Pet Sitting last year with http://Rover.com and made less than $1500.00. According to Pay Pal (which I use and have them transfer to my bank account), income less than $20K or 200 transaction is not being reported to the IRS so a 1099 will not be generated. Is this correct? So the IRS doesn't know about any income I made? Just wanted to know if I need to claim this income since it was such a low amount or not. Thank you!

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Karen R.

Book a Stay
Chicago, IL

Independent contractors report their income on Schedule C. No attachments (like Forms 1099) are required. But you still need to file an income tax return with your Rover earnings, less business expenses. Read about Schedule C.

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Anna B.

That only means that PayPal is not required by law to report to the IRS. You are still required to report all income. If Rover was your only source of income it's possible you are not required to file taxes. However, I am not a tax professional, so you should consult with one to be sure. To be clear, if you are filing taxes you need to report your Rover income and pay taxes on that.

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So question if that is the case should we be charging taxes on our services when we book? I have already started adding additional fees for mileage. Does anyone do this?

Nina F.

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Pay Pal doesn't report income to the IRS if under $20K or 200 transaction?

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