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Csan2000
August 31, 2022
Question

Paypal or other money changing apps

  • August 31, 2022
  • 1 reply
  • 0 views

If someone is using Paypal to pay for a puppy online, what is the limit before it is reported to IRS by Paypal?

 

Also, what is the limit for a deposit of cash or check in your checking account before it is reported to the IRS?

 

Are these limit amounts for the entire year or just per transaction?

    1 reply

    KochuK
    KochuK
    August 31, 2022

    Hi Csan2000, thanks for posting the questions.

     

    If the recipient of puppy sale receives more than $600 in total from PayPal for tax year 2022, regardless of number of transaction, PayPal will issue a Form 1099-K.

     

    Cash payment report helps government combat money laundering

    https://www.irs.gov/newsroom/cash-payment-report-helps-government-combat-money-laundering

    The above is per transaction.

     

    Hope the above helps.

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