PayPal Sales & SSN Requirement

[1966newport]

apparently over 600

 

[1970FuryConv]

That's why our situations are completely different. I have no business and run very little through PayPal.

In reviewing my checkbook, twice, I have in 2021, one PayPal sale, $252 for an intake.
If under $600 is exempt, my question is

 

[Big_John]

Anyone remember the days of cash on delivery? C.O.D in the 90s we would order parts and just pay the ups driver.

UPS still does COD as does Fed Ex and USPS. There's some limitations and there's more fees involved, but yes, they still do it. The fees start at $10 for UPS and $8.60 for USPS.

 

[MAGNUM77]

UPS still does COD as does Fed Ex and USPS. There's some limitations and there's more fees involved, but yes, they still do it. The fees start at $10 for UPS and $8.60 for USPS.

Maybe so didn’t know that. But it’s not like the old days. Everything used to be advertised with COD etc… And I think it may be up to the company??? I know in 90’s we ordered parts and would just pay the driver when they arrived. I haven’t seen COD advertised in years

 

[MAGNUM77]

.
I never paid a UPS driver COD. I prepaid. I was unaware of COD.
I don't mind the IRS agents,. I don't cheat on my taxes, so they'll be very bored if they audit me.

And the point with that is if u have over $600 in your account there gonna go through your bank account etc…. Doesn’t really have anything to do with cheating on your taxes.

 

[1970FuryConv]

Regardless of the reason: access to all my credit info or IRS, I will never give PayPal my SSN.

 

[MAGNUM77]

Regardless of the reason: access to all my credit info or IRS, I will never give PayPal my SSN.

I do agree with u on that 100%

 

[LocuMob]

And the point with that is if u have over $600 in your account there gonna go through your bank account etc…. Doesn’t really have anything to do with cheating on your taxes.

I don't think the amount in the account is an issue, it's deposits and withdrawals of $600 and over. That will trigger some flag.

Another member mentioned the $600 and PayPal for tax purposes, and I get that. Individual contractors and small business owners get a 1099 for when they get paid $600 or more. Why your bank account, that's what concerns me. What if I turn in my loose change I've collected for a couple of years, then I have to explain myself for depositing my own money? No valid excuse and I'm adding that to my income? BS, and nothing else.

 

[Big_John]

Ummm... Guys, you need to read or watch the news more closely.

The $600 transaction reporting went by the wayside when there was a lot of backlash. Basically, the administration did something wise for a change and backed off.

Geeeshh.... This is how this crap gets spread....

Hope that's not too political.

Quite frankly, IMHO, the SSN may be more for verifying your bank account info more than anything else. I think they are more worried about collecting sales tax rather than income tax from the junk you sell on eBay. Either way, once you hook PayPal (or most anything else) to your banking account, they can get your SSN and a lot of other info with a few keystrokes.

 

[LocuMob]

Ummm... Guys, you need to read or watch the news more closely.

The $600 transaction reporting went by the wayside when there was a lot of backlash. Basically, the administration did something wise for a change and backed off.

Geeeshh.... This is how this crap gets spread....

Hope that's not too political.

Quite frankly, IMHO, the SSN may be more for verifying your bank account info more than anything else. I think they are more worried about collecting sales tax rather than income tax from the junk you sell on eBay. Either way, once you hook PayPal (or most anything else) to your banking account, they can get your SSN and a lot of other info with a few keystrokes.

My bad, I thought the bank thing was still in the works.

 

[halifaxhops]

Thanks for all the input. PayPal is asking for my SSN on their website, or threatening to limit me to Buy transactions only. My SSN is none of their business and it is none of ebay's business. I don't sell much. It's a lot of work to sell. Not a big loss if I recycle instead. Too bad they put invading my privacy above me helping someone with parts every now and then.

I agree but the reason is to report your incoome to the IRS!

 

[Big_John]

I agree but the reason is to report your incoome to the IRS!

Yes and no...

You guys are using the word "income" incorrectly. When dealing with the IRS, you have to define "taxable income"

If I sell a used widget that I bought new for $10 on eBay for $5, that's not taxable income. If I buy a case of widgets and the cost is $5 each and sell them for $10 each, that's profit, which could be taxable income of $5 for each widget.

Your PayPal does not differentiate, is really incapable of showing what is taxable income and what isn't.

From the following article, PayPal will only report to the IRS if:

• You received $20,000 in gross payment volume from sales of goods or services in a single year
• You received 200 payments for goods or services in the same year

Does PayPal Report Income to the IRS?.

If you are doing business for profit and taking PayPal, then you should be recording your expenses. If you sell 10 of those $10 widgets, the gross was $100 but when you subtract the cost of $50, that's the profit ($50), which could be taxable income. Your 1099 will show $100, but it's up to you to report it correctly, showing your expenses.

Bottom line, the average guy that sells some leftover parts here and there isn't going to hear from the IRS because PayPal isn't reporting it.

Sales tax... That's another story... eBay and PayPal collect sales tax and that probably will require your SSN or business ID#.

BTW, Poshmark, which is basically eBay for clothing, asks for cost up front of what you sell. Mrs. Big John sells a lot of stuff on Poshmark, usually the grandkid's clothing that they've outgrown. That $20 sweater that sells for $5 isn't making a profit, but the people with the used clothing stores are buying for $5 and selling for $10, so that makes some sense that they are taking the guesswork out of the equation.

 

[1970FuryConv]

Most stores submit my sales tax without my SSN.
I will not make exception for PayPal or Ebay. They can't have my SSN either.
I pointed out earlier that after cost, the IRS would gain nothing from auditing my PayPal transactions.
I have no taxable income from anything paid on PayPal.
I agree with those who say, PayPal is strong arming me to get my credit history. I will not knuckle under to vague threats about making my account Buy-Only.
I'll just throw the stuff away. My annual sales this year are $252. My privacy is more valuable than that.

 

[ayilar]

AFAICT, the "plus" that PP brings to the table is the option of buyer protection. That has a cost, however. When buying from someone whom one knows well, therefore, one might prefer to use Zelle which is free to use and guarantees an immediate deposit.

 

[1966newport]

try opening any other back account without giving them your ss number. aint happening

 

[1970FuryConv]

try opening any other back account without giving them your ss number. aint happening

Precisely why I have decided not to "open" a seller bank account with them. $252/year is not worth giving up my private info.

You have the right to disagree with me and the right to give PayPal any of your personal info you want, if you want to have a seller account with them. In that case, we'll agree to disagree.