Paypal Help

[patrickadams26]

Ok i am still new to paypal. I need some help. I tried to contact paypal by email and they couldn't help. All help is great or if you have a link to direct me to. For paypal I have a personal account not a business or premium account (the money isn't from ebay sales it is from sales on this site.). If I transfer money to my bank account from pay pal how would I put this in my tax return? Do i not need to add it to my tax return? the people i sell the cards to don't get charged tax. we agree on a price.

Please Help

Thanks

[Gtbballer20]

i dont think you add it to your tax return....i dont

[patrickadams26]

thanks

anyone else have input?
i would like a couple Canadian imputs

i dont think you add it to your tax return....i dont

[OnePimpTiger]

I'm not an accountant or anything, so take this for whatever you think it's worth:

Any income you receive is taxable unless it's explicitly designated non-taxable (not just by you, but under the tax code...no idea how to tell what is and isn't, but only a few circumstances are). For general income outside your regular job pay, in America we have a section that's called "other income" or something like that. I'm not familiar w/Canadian filings, but I would assume they have something similar. That's where it would go.

As far as if you should, that's completely up to you. If it's income you receive from personal business transactions (like selling cards), then it is considered taxable. But, as with anything, the only way it would be found is if you were audited and as long as nothing seems out of the ordinary, then most likely you wouldn't be. Take charitable contributions as an example. If you put little to none, most likely that will not be questioned. But if you put a huge amount of charitable contributions relative to your income, that raises a flag. With other income, I'd say most people don't put anything there, so that's not out of the ordinary and would most likely not be questioned. Again, that's completely your call though, as technically it would be illegal to withhold it and no one on here can tell you to do that.

[patrickadams26]

thanks. that helped. the reason i am asking is becasue i don't want to do anything illegal by withholding. i am trying to stay away from that.

thanks again

I'm not an accountant or anything, so take this for whatever you think it's worth:

Any income you receive is taxable unless it's explicitly designated non-taxable (not just by you, but under the tax code...no idea how to tell what is and isn't, but only a few circumstances are). For general income outside your regular job pay, in America we have a section that's called "other income" or something like that. I'm not familiar w/Canadian filings, but I would assume they have something similar. That's where it would go.

As far as if you should, that's completely up to you. If it's income you receive from personal business transactions (like selling cards), then it is considered taxable. But, as with anything, the only way it would be found is if you were audited and as long as nothing seems out of the ordinary, then most likely you wouldn't be. Take charitable contributions as an example. If you put little to none, most likely that will not be questioned. But if you put a huge amount of charitable contributions relative to your income, that raises a flag. With other income, I'd say most people don't put anything there, so that's not out of the ordinary and would most likely not be questioned. Again, that's completely your call though, as technically it would be illegal to withhold it and no one on here can tell you to do that.

[Enigma]

Can't help with Canada, but US policy has changed...

Paypal is now required by US law to report any account with high amounts of Paypal activity as money received from selling on sites such as eBay is supposed to be reported on US Income Tax Return filings. The IRS is looking to crackdown on this activity since there is a paper trail of a transaction between eBay and Paypal.

For instance, with my business account, I have to report the money from every transaction that comes through that account. They are now extending this to personal accounts.