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How do I file taxes if Paypal does not have to give you a 1099?

Hi all,

I understand that if Rover sends you checks, you have to fill out a W-9 form. If you get your payments through Paypal, you're instructed to go to your paypal account to get a 1099 form. However, after speaking to Paypal, they aren't legally obligated to give you that form if you make less than $20K.

So I've made more than $600 (not by much), and I'm wondering how I report it because my online tax tools aren't being helpful about it. Thanks in advance!

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I understood that Rover would provide the 1099. I also get paid through PayPal, but I had an office job last year, so I need a 1099 for 2015...I definitely earned way more than $600 last year, and the little I earned here at Rover needs to be added in!

Mary C.

Anyone know what Paypal's federal ID number is? Trying to do TurboTax and feeling frustrated with Paypal's lack of usefulness.

Sarah L.

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Cari C.

An employer is not required to issue a 1099 unless over $600 has been paid to the contractor, and you don't actually need one to file your taxes. That being said, you should use Schedule C for your dog sitting business and income. Just report your total income for the year. Using Schedule C allows you to deduct expenses you had in operating your business. Caveat: I'm not a professional tax preparer any more, although I did work as one for a year. I've also worked and filed as an independent contractor for the past 10 years. Consult a tax pro for specific advice.

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Thanks so much for your input Cari, that's very helpful!

Marisa M.

Does this mean I can send $600 to my paypal account before the end of the year and not get taxed? Then send another $600 to my paypal account in January tax free? Is $600 the threshold? What if I have another job? Is it total income or just income per job?

Heather T.

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Heather M.

Also even after 25k, Paypal does not give you a W-2 unless you have also had 200 transactions. Super annoying because I made well over the 20 threshold lat year from Rover and Paypal still wouldn't give me a W-2 because I only had 180ish transactions. You can get Paypal business mode though which will helps gather up and filter your financial transactions.

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That is a great suggestion, Heather! I'm going to start doing that as well. I was trying to avoid extra work on my tax return for just a few hundred dollars, but I think I have it figured out for this year and now know better for next year thanks to input here!

Marisa M.

Just to be clear, Paypal will issue a 1099, not a W-2. A W-2 is issued by an employer to an employee, and we don't fit that definition. We are independent contractors.

Cari C.

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Carmen C.

Hi, Folks,

I received the following link about Rover and taxes in an email today. You may want to check it out:

https://support.rover.com/hc/en-us/ar...

Good luck to all of us!

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How do I file taxes if Paypal does not have to give you a 1099?

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