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Question about taxes and paypal

Discussion in 'Business & Tax Advice' started by element_of_0ne, Apr 25, 2011.

  1. element_of_0ne

    element_of_0ne Junior Member

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    Do you have to claim income that is still in your paypal account and hasn't been moved to your bank, but was earned for the tax year in question?

    Secondly, if you only claim income that you moved from paypal to your bank that year, can you write off any expenses paid for using your paypal balance?
     
  2. fnd80

    fnd80 Regular Member

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    1. If it's income, you have to claim it, no matter where you have it "stashed."
    2. You can't deduct expenses against income that you didn't report, but expenses are expenses, so it doesn't really matter how you paid for them. Your second question is really moot however, because you need to be reporting ALL of your income, and then you'd obviously want to deduct ALL of your legitimate expenses.
     
  3. suga051982

    suga051982 Regular Member

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    if you earned it, claim it. doesnt matter where its sitting. Especially seeing as how pp is an IRS snitch now