So....several of our MSCs have stated that since they pay via PayPal, we will not be receiving 1099 forms from them this year, as PayPal will be providing a 1099K...however, we know that requirement has been pushed to next year, so...are we on our own for that reporting? Honestly, it's just a pain in the neck to have to go through all of these records - I keep a pretty thorough spreadsheet, but I still have to go through now and filter by company, and then look at reimbursement and profit for each month and add together....Anyone have a better method?

Edited 1 time(s). Last edit at 02/13/2024 03:11AM by Mousegal.

Just got Ipsos. For a minute, I thought it was Intellishop or SeeLeel (Intouch) again as it says Insight instead of Ipsos. Also got SeeLevel and Intellishop before this. I just keep track of everything and then cross reference when the 1099s come in. The only ones I didn't get were ones where I earned less than 600 so they weren't hard to double check, but yes, it's a pain. I'd rather get one for everything.

Paypal only provides a 1099 if you reach $20,000 or more. They provide the 1099 from them and not from other MSC. But, you can go into your account and filter the amount each company paid you and you can print that.

Learn how to use Pivot Tables. They will be your best friend come tax season.

I got this in an email from Confero (whom I haven't met the $600 threshold for.) I think it's pretty crappy to say, "We're not sending you a 1099 since you can rely on Paypal to send you one giant one." I have NEVER received a 1099 of any sort from Paypal.

"Here is information you may need in preparing your 2023 taxes:

Confero will not issue a 1099 to you. We pay only by PayPal, which is a third-party payer (a payment app). If you are to receive a 1099, it will show in your PayPal account. Here is information from the IRS about the required 1099 reporting threshold for 2023: [www.irs.gov]

Excerpts from IRS link: “This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions”. “The Form 1099-K could be sent to anyone who's using payment apps or online marketplaces to accept payments for selling goods or providing services. This includes people with side hustles, small businesses, crafters and other sole proprietors.”

The threshold is for all payments you received -- not just payments from Confero.

The payments you received via PayPal were the total amounts payable to you. This means the amounts included fees and expenses. To see the fees and expenses for each you conducted, please log into your Confero account and view your log. Filter the log to show Paid On dates January 1, 2023 – December 31, 2023.

When preparing your taxes, you will not need Confero’s EIN or Tax ID, as Confero paid you through a third party. Sometimes, online tax software implies that this is required. We do not distribute Confero’s EIN to contractors paid via Paypal.

We hope you find this information helpful. Please understand that this message is intended to direct you to the information you may need to prepare your tax return. It should not be construed as tax advice. Please consult your tax advisor for additional information.

We wish you all the best in 2024!

The Confero Team"

I’m trying to see how we file it without an ein number

I'm trying to figure out how we report the reimbursements...so that's money we spent for product, that was then reimbursed, BUT that reimbursement is not income, so there has to be a way to "subtract" it in business expenses...guess I'll be chatting with a CPA online to figure that out

@Mousegal wrote:

I'm trying to figure out how we report the reimbursements...so that's money we spent for product, that was then reimbursed, BUT that reimbursement is not income, so there has to be a way to "subtract" it in business expenses...guess I'll be chatting with a CPA online to figure that out

You have to report it as income and then offset it with the purchase expense in your schedule C.

You will only need an EIN if you get a 1099 from an MSC or from PayPal. If you get a 1099, it will have the EIN on it. If you don't get a 1099 form, you just report revenue and expenses on the appropriate line on Schedule C. An EIN will not be required to do that.

@cmrgray wrote:

I’m trying to see how we file it without an ein number

There is no need to list EINs. Indeed, there is no place to put them on one's Schedule C.

It has always been silly - and redundant - that some MSC have sent 1099s to those they pay via PayPal.

One should always maintain detailed reocrds of revenue and business expences. Dont rely on 1099s which may contain errors; without having the details one has no aay to lnow if the 1099 is accurate or not.

Thank you! I appreciate .

Thank you! Appreciate it!