If my company uses a contractor and pays over $600, we must have issue a 1099. How is this any different? The rule does not include payments made between friends and family. People are using Venmo and Zelle to avoid paying taxes on income from selling goods and services. If I must pay taxes on income so should everyone.
“The rule does not include payments made between friends and family. “
This seems to be a common perception. Can you cite where on the IRS forms I am to subtract for payments made between family and friends? Because there is none.
You will get a 1099-K for the amount, PayPal may cut you some slack if it was labeled as a ‘gift’. But otherwise, this looks like INCOME.