My wife has been using my eBay/Paypal account to sell things for a while. We've always paid taxes on any profits. This year, she's sold a bit more, and has taken over 20k in payments, and has also taken over 200 payments.So we're going to get a 1099 k next year, which is fine. As always, we plan to claim the profits minus the deduction anyways, which really isn't much (I believe).
Here's the thing... I was laid off my job in July, and was on unemployment for a couple months. I did get hired (thankfully), and am now back to work.
I know that because the paypal/ebay accounts are in my name, the 1099 from paypal will come in my name. We're concerned about this for obvious reasons: I was on unemployment, but paypal is 1099'ing me "saying" I made money, when I didn't. The last thing i need is to get in trouble.
I did sell a few personal things here and there, but nothing that made a profit... more like a loss (which i'm not going to deduct btw...).
So in the event that we can't get the paypal account/1099 to come in her name... WHAT DO WE/I DO??
If we switch to a paypal business account, and then use the business contact name change by providing a copy of her social security, ID, etc... will that ensure the 1099 comes in her name?
Our bank acct. that is tied to paypal is a joint account. Not sure if that helps...
Thanks in advance,
George
Click here to find out what our tax gurus said about G.H.927's concern. What do you think?
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