WEB For those of you who make money through paypal...

Discussion in 'OT Technology' started by Falconer, Sep 3, 2009.

  1. Falconer

    Falconer OT Supporter

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    Say you do some consulting or whatever and make a significant amount of money through Paypal.

    How do you pay taxes on this? Do you just add it to your total income and pay whatever percentage TurboTax takes out? It's just regular income, right?

    Or do you need to fill out extra forms and shit for it?

    I was gonna ask in the Wallstreet Forum but I figured this forum is more active and I know there are some people here who make a lot of money with and get paid via PayPal.

    Thanks.
     
  2. Pepsi1975

    Pepsi1975 Mod of the Year

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    most of them will tell you to fuck paying taxes :mamoru:
     
  3. Phasm

    Phasm OT Supporter

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    I just add it to my income like you were saying. Might be a better way but that's all I do.
     
  4. JesterFX

    JesterFX New Member

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    me too.

    Just print out the months and highlight the income. Though really, paypal is usually one of my main methods to pay out so I end up with a ton of shit to write off instead.
     
  5. Browning

    Browning Active Member

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    :dunno: haven't worried about it yet
     
  6. hank85

    hank85 sudo shred /dev/sda -f -v -z --iterations=6

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    Handle it as if you were being paid by check. Since PayPal doesn't have any way of knowing what you're actually being paid for be it services rendered or goods sold/resold you have to file it yourself using whatever method you currently use, they DO NOT submit W2, 1080 etc forms what so ever.

    Also be sure to deduct whatever amount of fees PP charges you. It might not be a very large deal for you right now but when you have multiple payments made to you per month for large amounts those PP fees add up to thousands per year which need to be written off.
     
  7. marcom10

    marcom10 ...

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    I never bothered to report income neither did my dad..we've been fine..the only way the IRS would suspect anything is if you were to get audited but still its a longshot..youll be fine
     
  8. TomBrady

    TomBrady New Member

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    yeah the fees fuck the profits up
     
  9. JesterFX

    JesterFX New Member

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    I completely forgot to write off the paypal fees. Though I had plenty of write offs without it but still should.
     
  10. Falconer

    Falconer OT Supporter

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    i would assume you only include the post-fee amount that you actually got :dunno:

    so if you're reporting it, can you subtract things you bought with paypal? say i made $1,000 thru paypal but i then bought something w my paypal account for $200, and then deposited the remaining $800 int my bank account. do i only have to report that $800?

    next question: paypal only lets you deposit $500 per month unless you verify by giving them your ssn (or a credit card which i dont want to do). if paypal has your ssn will they report your income then since they can tie it to you?
     
  11. nivleh5

    nivleh5 OT Supporter

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    i think they ask for your ssn as a form of verification. then again...its paypal :squint:
     

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