Classifieds and PayPal (update)

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ThomasT said:
Did I hear you right, that Friends and Family, me as an individual can still send money to my brother or just a friend and NOT be charged any additional fee?
ThomasT
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Correct. Any monies received totaling over $600 for the year will generate a 1099k regardless if it’s friends/family or goods and services. Also fees will be incurred now on friends and family.
 
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baranjhn said:
Correct. Any monies received totaling over $600 for the year will generate a 1099k regardless if it’s friends/family or goods and services. Also fees will be incurred now on friends and family.
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I am not sure where you heard this. As far as I know, and I checked again with PayPal, there are no fees for individuals using F&F to send money to other individuals. What has changed is that if you are a business then they will charge the fees on all transactions, even if it is set up by the payor as F&F.

This is not surprising to me, since its kind of hard to see why a Business should be getting paid as Friends and Family.

So, if you, as an individual, receive money from another individual using PayPal Friends & Family there are still no fees!
 
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ChRiSiS said:
I am not sure where you heard this. As far as I know, and I checked again with PayPal, there are no fees for individuals using F&F to send money to other individuals. What has changed is that if you are a business then they will charge the fees on all transactions, even if it is set up by the payor as F&F.

This is not surprising to me, since its kind of hard to see why a Business should be getting paid as Friends and Family.

So, if you, as an individual, receive money from another individual using PayPal Friends & Family there are still no fees!
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You as the receiver may not incur any fees but you do still have to pay a fee when sending to friends and family.

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baranjhn said:
Just a heads up. Looks like PayPal updated their policy again on 6/28. Now Friends/Family transactions will be charged fees. Also, they will generate a 1099k for taxes on these transactions too.

Here is a sort video from the economic ninja to explain:
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Just a fair warning. Paypal is NOT fire arm friendly. I did not read the fine print, and sold my shotgun a legit online firearms forum, the buyer paid me .24 hours later my paypal account was permanently terminated.
 
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mudbone said:
Just a fair warning. Paypal is NOT fire arm friendly. I did not read the fine print, and sold my shotgun a legit online firearms forum, the buyer paid me .24 hours later my paypal account was permanently terminated.
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Yep, that is why midway does not accept payment from them, very anti 2a.
 
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CTairgunner1288 said:
You as the receiver may not incur any fees but you do still have to pay a fee when sending to friends and family.

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Let’s be clear what is happening here. PayPal has always had a fee if one pays via a Credit Card, regardless of whether the transaction was done Friends & Family. There is no fee if paying from a Bank account and sending the money to Friends and Family.

A lot of people do not know this and are shocked when they see a fee pop up on a payment they are making via PayPal to F&F but are using a Credit (or other) Card to charge the payment. The only time that this does not apply is if you are using your bank account, or if you have an existing PayPal balance. Again, this is not new.

Here is a quote from PayPal:
”You can make a personal payment to anyone with a personal PayPal account in the U.S. for free. Just make sure that you pay the entire amount using your bank account or your balance if you have a PayPal Balance account. There is a small charge for payments made with a debit or credit card.”
 
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Revoman said:
Yeah. I just sent a PP F&F yesterday only to see a +$60 charge for sending +$2500.
Sucked!
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We’re you using a Credit Card to make the payment? Because that’s the only way I know of that there is a PayPal fee for F&F. I did it up to three days ago with no fee, as usual, because the money was coming from my bank account!
 
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Chuck-in-Ohio said:
I juat sent a payment last week F&F and incurred no fees. The recipient incurred none either as I am sure that I would have been informed.
The payment was from my bank account, not funded with a CC.
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Precisely! There are lot of people making comments that there are new fees for F&F, but that is incorrect (as far as individuals go).
 
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ChRiSiS said:
Let’s be clear what is happening here. PayPal has always had a fee if one pays via a Credit Card, regardless of whether the transaction was done Friends & Family. There is no fee if paying from a Bank account and sending the money to Friends and Family.

A lot of people do not know this and are shocked when they see a fee pop up on a payment they are making via PayPal to F&F but are using a Credit (or other) Card to charge the payment. The only time that this does not apply is if you are using your bank account, or if you have an existing PayPal balance. Again, this is not new.

Here is a quote from PayPal:
”You can make a personal payment to anyone with a personal PayPal account in the U.S. for free. Just make sure that you pay the entire amount using your bank account or your balance if you have a PayPal Balance account. There is a small charge for payments made with a debit or credit card.”
Click to expand...
Finally someone that is actually correct.
 
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baranjhn said:
Just a heads up. Looks like PayPal updated their policy again on 6/28. Now Friends/Family transactions will be charged fees. Also, they will generate a 1099k for taxes on these transactions too.

Here is a sort video from the economic ninja to explain:
Click to expand...
I had a 1099K sent to me from Ebay. If you have under $20K in sales and less than 200 transactions
you will not receive a 1099K. I received one for $754 in total sales. I received it after sending in my 2021
Tax return. I ended up doing a 1040X Amended return since I didn't include that 1099K income in my
1040 return. About three weeks after I mailed my Amended return I get a letter from Ebay apologizing
and stating that I should have never been mailed the 1099K for reasons I mentioned. I am still waiting
for my tax refund after mailing it on February 1st ! Bottom line, don't do a Amended return until your
original tax form you filed is processed.
 
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