If you're selling on Drip and need to access your 1099-K form for tax purposes, PayPal makes this process straightforward. Since all payouts for Drip sales are handled through PayPal, you can easily retrieve the necessary tax forms directly from your PayPal account.
Here’s how to find your 1099-K form in PayPal:
Step 1: Log into Your PayPal Account
Begin by visiting PayPal.com and logging into your account using your username and password. Make sure you’re using the account where your Drip sales payments are deposited.
Step 2: Access the Account Settings
Once logged in, click on the gear icon located at the top-right corner of the page. This will open your account settings.
Step 3: Go to Statements and Taxes
In the account settings, navigate to the “Statements and Taxes” section. This is where PayPal stores important tax documents like the 1099-K.
Step 4: Look for Your 1099-K Under Tax Documents
Under the Tax Documents section, you should see your available tax forms, including the 1099-K form for any applicable years. If your 2023 tax form is available, you can download it here. Forms are usually available starting January 31st of the following year.
Important Note: Starting in the 2023 tax season, the IRS lowered the threshold for reporting income via third-party payment networks. PayPal will issue a 1099-K form if you receive $600 or more in payments for goods and services within a calendar year, regardless of the number of transactions. This is a significant reduction from the previous threshold, which required $20,000 in total payments and 200 transactions.