Question

Paypal

Forum|Forum|3 years ago
August 31, 2022
1 reply
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I receive money through Paypal as an online ESL teacher. How will this affect my taxes? Will Paypal generate everything I need when its time to file?

Donna F 77

Congratulations on your ESL teaching position! Generally speaking - no - Paypal is not going to generate everything you need when it is time to file your taxes. The institution/company/person that is paying you should provide you with a Form 1099-NEC specifying how much money you were paid (through all sources, not just Paypal). You will need to keep track of all expenses relating to your ESL teaching position throughout the year. At year end, you will claim the income from the Form 1099-NEC on your Schedule C (Business Income & Expenses). You can check out this IRS resource to learn more about reporting your self-employment income:

https://www.irs.gov/businesses/small-businesses-self-employed

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