CONTACT US
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Noel Santos
Emmanuel A. Santos JD CPA, Incorporated
447 Sutter Street, Suite 714, San Francisco, CA 94108
Phone: 415-362-8921
Fax: 415-362-8924
Cell: 415-412-5839
Email: noel@eas-cpa.com
Website: www.eas-cpa.com
Your Business...Your Family...Our Concern
November 2022
Income From PayPal and Other Cash Apps
If you use PayPal or other electronic payment processors to collect payments from your customers, you’ll need to include that income on your tax return. Even though you might not receive a Form 1099-K from PayPal, Airbnb, or Venmo, it’s still considered taxable income according to the IRS. If you have not received a 1099-K before, it’s more likely you will for 2022 due to the new reporting requirements. (See article Form 1099-K Gets an Overhaul for details).
If your customer paid you via PayPal you could receive a Form 1099-NEC/1099-MISC from your customer and a Form 1099-K from PayPal, resulting in a double reporting of income. So, keep good financial records to support the amount you invoiced your clients. Otherwise, the IRS may conclude that you’ve underreported your income.
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