Under the existing tax regulations, when your commissions reach $600 USD or more in gross earnings in the calendar year, you are required to fulfill tax obligations. PayPal will ask customers to provide tax information like an Employer Identification Number (EIN), Individual Tax ID Number (ITIN), or Social Security Number (SSN), as they approach the reporting threshold, so you may continue using your account to accept payments for services without any issues. If your TIN (tax identification number) fails verification, you'll need to fill out an equivalent tax form W-9. You can access your Form 1099-K from your PayPal account from January 31. Please go to the new PayPal Statements & Tax Center.
Federal Reporting Threshold:
Tax Year Earned 2023 | Form Available 2024 | $600 USD or more in gross sales from goods or services in the calendar year. |