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I messed up big time on something....

topazmoon1968
topazmoon1968
that could end up costing me a few thousand dollars in taxes this year. I have a business and I use Paypal. My parents also send me money using Paypal, however they send it as a payment for services, because that is the only way I can do it at this point. So, I generated over 30,000 of income that has not been taxed. Now, I know I need to pay taxes on this money come tax time and I am freaking out because it was my mistake for handling it incorrectly.

I have not told my husband yet, and I know he is going to freak out, but I think I am looking at paying at least a few thousand dollars in taxes. I know I can deduct some money from this for expenses, but not much.

I am so mad at myself I could cry. We certainly do not have that kind of money to spare. I am trying to get a hold of my friend. Her husband is an accountant and I am hoping he has answers for me.

Just had to vent.....
billwfriend
billwfriend
what services were you being paid for? I got loans from my mom that never counted as income....but it did not show up on paypal....but could you not classify those as loans some how?
topazmoon1968
topazmoon1968
Yes, the money was to help us out financially, but the payments came through as goods because it is a business account. I spoke to my friend's husband who is an accountant and he told me that I may be able to put it down as a gift somehow. The problem is it is on a form 1099K, which is for the payment of goods. It is so hard for me, because it really was a mistake on my part (long story) but it just makes me feel really stupid about the whole thing.
billwfriend
billwfriend
I guess I do not use 1099 for anything at paypal because I am not an ebay seller...and do not collect money from paypal I use it to flow out from me to the people I buy from....

I dunno how to correct the info on the 1099? I do think you could call and ask the IRS hotline but the information that so many have been given by that hotline has been poorly correct....but give it try? or use a service such as HRBlock or other that does taxes and explain it to them and see what they suggest? I think it is sad that this happened...I would have parents mail me a check...hugs bill
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