Quote:
Originally Posted by JustinD
Nothing like taxing people on things that should not be.
I used Venmo, ppff, and cashapp every holiday season to collect donations at work to "adopt" several children as a secret Santa. These donations can total several thousand and myself and a few others would do shopping for each child, wrap and deliver new clothing, winter clothes, and of course toys to these homes. I never made a penny on this and in fact usually lost hundreds, but did not care.
I switched jobs this year and have not organized this of yet. Really happy to know that in their zeal, PayPal feels I need to not do this as the PPFF money needs a gratuity to the irs and myself having to somehow document that all these purchases are for gifts...I am not a 501c, I am just trying to frickin' help.
Of course we all know that people can abuse it. But while in college I sent my son thousands over those years for food and supplies, was he supposed to explain on a return that his dad was giving him pizza and book money?
If that is indeed true, it is an absolute travesty.
Bob C, I expect you will add...I just want to vent as these are unnecessary complications and will absolutely discourage me from using this service. I was using it correctly and now per this information, correctly is not good enough. Garbage, absolute garbage.
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No problem Justin, I get it and agree with you. Go look at that article I linked to in post #20, you'll note how it clearly states that donations and charitable type contributions are NOT supposed to be getting included in these G&S type amounts being reported on 1099-K forms, along with all F&F type payments to not be reported as well.
I can also understand the issues and errors that can be made, especially when these changes to the reporting limits get suddenly tossed out the door at literally the last minute. This whole issue has been a potential cluster-you-know-what from the very beginning, and in the IRS' attempt to hopefully make things easier for everyone, it may be having the exact opposite effect for many. But don't go blaming the IRS or any of the companies that have to prepare and issue these 1099-K forms. The bullseye should be squarely on our wonderful federal government, and all the dedicated, hardworking, and wonderful members of Congress, and whoever was in the Executive office that then signed this into law. (And that statement is made with complete and fully intended sarcasm.)
Hopefully you are not getting any of what you talked about reported as G&S type income, and having it show up on a 1099-K directed to you. If you have a concern or potential issue, I would possibly try being proactive, and contacting whatever TPSO (Third Party Service Organization) you may be using to handle these transfers, and explain what you're doing to them, and how to ensure that this activity does not end up as G&S taxable income to you on a future 1099-K.
One other suggestion, try using Zelle for cash transfers. Unlike all the TPSOs like Paypal, Venmo, and so on, Zelle is a direct bank-to-bank transfer, and is not considered as a TPSO, and therefore is not subject to any 1099-K reporting whatsoever. I myself have never used Zelle or set up an account with/through them, but understand they currently, at least, charge no fees for using their money transfer services. However, individual senders/recipients should check with their own bank/credit union to make sure they may not have some processing fee or additional charge they may try adding on to such transfers.
Sounds like a great thing you and others have going. Good luck to you all in keeping it going long into the future.