posted on September 2, 2012 02:55:03 PM new
I was going over some of last years docs.
I just noticed our Paypal 1099 shows a different amount than what our Paypal Financial Statement shows under Sales Activity for 2011.
Sales Activity on the FS is the difference between Payments Received - Refunds Sent.
Refunds are $6391.53 while the difference between the 1099 and the Financial Statement is $6176.53. That doesn't seem to add up.
Does anyone know if the 1099 only shows payment received or does it include refunds issued? Mine doesn't add up and both of these documents are directly from Paypal.
If you wouldn't mind checking your statements against each other, please tell me if there were any discrepancies too.
posted on September 2, 2012 03:00:53 PM new
The 1099 shows $215 less than the Financial Statement.
The odd thing is why would Paypal report to the IRS the gross amount of Payments Received instead of the amount paid after refunds? That would technically be what we actually received through Paypal.
That is very odd.
[ edited by shagmidmod on Sep 2, 2012 03:11 PM ]
posted on September 2, 2012 03:37:47 PM new
You should ask Paypal.
I recall credit takes longer to process than debit.
We are spoiled,those who have their own credit card account,they dont see the fund deposited in their account immedicately,usually it takes 24-48 hours and longer with overseas transactions.
But with paypal,the fund is available to us immediately,say you paid me 100 via paypal and I n see a 96.70 in paypal account,I can spend it right away or download to my bank account.
Paypal is actually loaning us the money while it waits for its credit card processor to collect the money from the other side.
posted on September 2, 2012 04:21:21 PM new
I figured it was a "hanging" transaction that fell on the last day or first day of which ever year it fell. I was just a bit surprised that the two Paypal documents were off. I pulled the Financial Statement around January 9, 2012 figuring it would give enough time for everything to be accurate.
posted on September 2, 2012 04:51:27 PM new
I just got my SS statement.
Because Paypal sent me 1099 form,I reported it on my tax return and paid self employment tax,and it is showing up on my SS statement.
posted on September 2, 2012 07:17:46 PM new
Checked both on the PP site.
1099K only shows payments received, NOT refunds issued.
Yes, it would make more sense not to include refunds in the amount. It would be so easy for PP to report a net instead of making more bookkeeping and paperwork for us small businesses. <sigh>
posted on September 3, 2012 05:48:14 AM new
There must be a reason why Paypal does not net the two/
If you ever ready an annual report of a company,on the income statement,they will report gross sales and then another line would be returns and allowances!
posted on September 3, 2012 12:37:31 PM new
Aren't refunds considered a "business expense" rather than a decrement of income? If so, the PayPal statements are correct: they paid (well, transferred to) you X-dollars, what you did with it is up to you to account for.
