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Taxes - PayPal, other credit card processors reporting income (gross receipts) to IRS - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited
All U.S. credit card processors MUST send you a 1099 if you process over $20,000. in transactions AND which represent over 200 transactions during the calendar year. SO, if for example in 2013 if you processed $21,000. in transactions AND this was processed in say, 210 separate transactions, then your payment processor is required to send you a 1099. This is required by law and there is no way around it.
HOWEVER, some payment processors will send you a 1099 even if you process a single dollar in transactions! In other words, some processors will send you a 1099 no matter what - even if you are under the $20,000. / 200 transaction threshold.
So far, I have determined that the following payment processors follow the law, and send you the 1099 ONLY if you cross that $20,000. / 200 threshold:
PayPal
Amazon
Square / Venmio
Braintree (through BankCard USA)
The following will send you a 1099, even if you process under the threshold:
iPayment (through First Data)
Intuit
Wells Fargo
EVO Merchant Services (Merchant Focus)
What about your experience? Please post and let us know! as we update this list.
All U.S. credit card processors MUST send you a 1099 if you process over $20,000. in transactions AND which represent over 200 transactions during the calendar year. SO, if for example in 2013 if you processed $21,000. in transactions AND this was processed in say, 210 separate transactions, then your payment processor is required to send you a 1099. This is required by law and there is no way around it.
HOWEVER, some payment processors will send you a 1099 even if you process a single dollar in transactions! In other words, some processors will send you a 1099 no matter what - even if you are under the $20,000. / 200 transaction threshold.
So far, I have determined that the following payment processors follow the law, and send you the 1099 ONLY if you cross that $20,000. / 200 threshold:
PayPal
Amazon
Square / Venmio
Braintree (through BankCard USA)
The following will send you a 1099, even if you process under the threshold:
iPayment (through First Data)
Intuit
Wells Fargo
EVO Merchant Services (Merchant Focus)
What about your experience? Please post and let us know! as we update this list.
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