2 Comments

  1. Eric – Great info. Thx. I’m the one who asked about the 1099s and Sendowl.

    Thx for bringing p the paypal thing because that is how I pay my affiliates and I had a question about that. Last year I got that form from Paypal. So part of me was thinking they handled it all.

    But then my best friend did not. We dug into it deeper and it turns out that paypal has requirements on that. For them to issue a form to you, you need to have received X number of transactions and/or Y amount of money. (I can’t remember the #’s and whether it was an either/or.

    Should I be worried about that? It sounds like from what you’re saying that I don’t need to do that for the paypal transactions (and thankfully Teachable who I now use, too) will take care of that. Do I have that correct. Don’t do anything on those, but just worry about the 1099s for my VAs and/or other stuff (like my CPA, bookkeeper, etc.)

    Thanks in advance and thanks for this post. And, thx for pointing out the legal/asset protection. That is why i filed on day -1.

  2. Hey Debbie!

    The limits are 200 transactions and $20k in order to qualify for the 1099-K.

    I always tell people that you aren’t the “tax police”, meaning it’s not up to you to worry if the people you pay will qualify for the K in order to determine if you should send a 1099-MISC. If you may someone using a Payment Settlement Entity (PSE) such as PP, Square, Stripe, or any other merchant account you simply ignore the filing. Also, if the organization is an S-Corp/C-Crop, unless they are an attorney , you don’t send a 1099-MISC either 😉

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