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Is It Safe to Send Money Through Facebook?

Facebook employs several safeguards to protect your money and financial information when you send money through its Messenger app and the more recently launched Facebook Pay. Like anything online, however, there remains a chance that your safety may become compromised.

Cybercriminals and hackers can be ingenious, and that has led to numerous online security breaches at big companies. Facebook employs some of the brightest minds in cybersecurity to keep its users safe. However, a security breach in 2018 exposed the personal information of an estimated 87 million users and raised some doubts about the company's ability to protect its customers' data.

Here is what you need to know about using Facebook's Messenger app and Facebook Pay to send and receive money, what cybersecurity measures Facebook employs, and what you can do to protect your information and your money.

Key Takeaways

  • Facebook allows users to send and receive money through the Messenger app and Facebook Pay, free of charge.
  • Facebook's software plays the role of financial middleman between the sender and the receiver.
  • The company's software is also set up to provide security and protection from hackers.
  • Even with good security, users need to be proactive and employ cybersecurity best practices on all devices.

How Sending Money on Facebook Messenger Works

Facebook offers a feature that allows users to send and receive money through the site's popular Messenger app. Facebook's software facilitates the money transfer, acting as a conduit between the user's bank and the payee's bank. The software also gives the transaction extra layers of security to prevent hackers from compromising either party's financial information.

Facebook does not charge users to send or receive money in Messenger. Both the sender and the receiver must live in the United States, be at least 18 years old, and link a bank-issued debit card or PayPal account to Facebook or Messenger.

How to Send Money Using Messenger

To send money through Facebook, open a Messenger conversation with a friend, click the plus icon, and then click the dollar sign icon. From there, enter your bank-issued debit card number or PayPal information, which may be stored in the app for future use. Lastly, input the amount you want to send and submit it.

You can send money to multiple friends through a group conversation. You can also use group conversations to request money from multiple friends.

How to Receive Money Using Messenger

To receive money in Messenger, you must add a debit card to your account. First, open the Messenger conversation containing the money and select "Add Debit Card." Once you've added a debit card to your account, money sent to you will automatically deposit to that account.

You can only send and receive money with family and friends via Facebook Messenger—business payments can't be made.

How Facebook Pay Works

Meta (as Facebook’s parent company is now known) launched Facebook Pay in November 2019, making it possible to send and receive money across its platforms and to purchase things such as games, event tickets, and items for sale on Facebook Marketplace and Instagram.

Facebook Pay works much like Messenger and also does not charge fees. Users can link a bank-issued debit card or PayPal account, as well as major credit cards (a feature that Messenger does not offer). In the U.S. it is currently available on Facebook, Messenger, Portal, and Instagram and will eventually be offered on WhatsApp. Facebook Pay continues to roll out in other countries too.

Facebook's Security Measures

With sensitive services like Messenger and Facebook Pay, many users wonder what kind of security measures Facebook includes to protect its users. The connection is encrypted by Facebook. Encryption is the process of using an algorithm to turn critical information—such as credit card and bank account numbers—into an unreadable format. Moreover, Facebook uses an additional layer of encryption for financial information submitted through Messenger and Facebook Pay.

Additionally, when sending or receiving money, Facebook only shares your name, profile photo, and the dollar amount between you and your friend. The info the app asks to verify your identity is not shared. To confirm your identity and prevent fraud, Facebook may ask you to provide additional information, such as your legal name, date of birth, zip code, last four digits of your Social Security number, or answers to multiple-choice questions that only you would know. Because Facebook Pay also allows purchases, anti-fraud technology monitors purchases to detect unauthorized activity.

Users who seek even more security can require a personal identification number (PIN) to send money. This prevents fraudulent transactions if an unauthorized user gets their hands on your computer or mobile device.

Another security option specific to iPhone and iPad users is Touch or Face ID, by which the device analyzes your fingerprint or facial features to ensure you are authorized to send money.

More Tips to Keep Your Account Secure

There are additional measures you should take when sending and receiving money via Facebook to keep your account safe. You should only send and receive money from people you know and trust. Protect your Facebook account by activating two-factor authentication (2FA), which is a second layer of security.

Don't accept friend requests from people you don't know, even if the requests seem to come from people who are "friends of friends." Cybercriminals will hack into existing accounts of people you know and pose as friends in order to gain your trust. They might set up an elaborate fake online identity—a strategy known as cat fishing. They'll use Messenger to send messages requesting money. These fraudsters will use a variety of common money scams, including donation, lottery, romance, loan, and inheritance scams.

1.3 billion

The number of people using Facebook's Messenger app monthly in 2020.

The Bottom Line

No information is ever 100% safe on the internet, regardless of the security measures in place. Widely reported large-scale hacking incidents have made some consumers wary of making financial transactions using their phone's apps.

While such high-profile incidents understandably make internet users nervous, the fact remains that the biggest security threat to your information online comes from failing to secure your personal devices. Be sure to password-protect your computer and mobile devices to help prevent unauthorized users from accessing them and wreaking havoc. And install a robust antivirus or anti-malware program to help detect threats such as keystroke loggers, which record the keystrokes you make to a log file and sends them to an unauthorized third party.

Источник: https://www.investopedia.com/articles/personal-finance/092315/it-safe-send-money-through-facebook.asp
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Is It Safe to Send Money Through Facebook?

Facebook employs several safeguards to protect your money and financial information when you send money through its Messenger app and the more recently launched Facebook Pay. Like anything online, however, there remains a chance that your safety may become compromised.

Cybercriminals and hackers can be ingenious, and that has led to numerous online security breaches at big companies. Facebook employs some of the brightest minds in cybersecurity to keep its users safe. However, a security breach in 2018 exposed the personal information of an estimated 87 million users and raised some doubts about the company's ability to protect its customers' data.

Here is what you need to know about using Facebook's Messenger app and Facebook Pay to send and receive money, what cybersecurity measures Facebook employs, and what you can do to protect your information and your money.

Key Takeaways

  • Facebook allows users to send and receive money through the Messenger app and Facebook Pay, free of charge.
  • Facebook's software plays the role of financial middleman between the sender and the receiver.
  • The company's software is also set up to provide security and protection from hackers.
  • Even with good security, users need to be proactive and employ cybersecurity best practices on all devices.

How Sending Money on Facebook Messenger Works

Facebook offers a feature that allows users to send and receive money through the site's popular Messenger app. Facebook's software facilitates the money transfer, acting as a conduit between the user's bank and the payee's bank. The software also gives the transaction extra layers of security to prevent hackers from compromising either party's financial information.

Facebook does not charge users to send or receive money in Messenger. Both the sender and the receiver must live in the United States, be at least 18 years old, and link a bank-issued debit card or PayPal account to Facebook or Messenger.

How to Send Money Using Messenger

To send money through Facebook, open a Messenger conversation with a friend, click the plus icon, and then click the dollar sign icon. From there, enter your bank-issued debit card number or PayPal information, which may be stored in the app for future use. Lastly, input the amount you want to send and submit it.

You can send money to multiple friends through a group conversation. You can also use group conversations to request money from multiple friends.

How to Receive Money Using Messenger

To receive money in Messenger, you must add a debit card to your account. First, open the Messenger conversation containing the money and select "Add Debit Card." Once you've added a debit card to your account, money sent to you will automatically deposit to that account.

You can only send and receive money with family and friends via Facebook Messenger—business payments can't be made.

How Facebook Pay Works

Meta (as Facebook’s parent company is now known) launched Facebook Pay in November 2019, making it possible to send and receive money across its platforms and to purchase things such as games, event tickets, and items for sale on Facebook Marketplace and Instagram.

Facebook Pay works much like Messenger and also does not charge fees. Users can link a bank-issued debit card or PayPal account, as well as major credit cards (a feature that Messenger does not offer). In the U.S. it is currently available on Facebook, Messenger, Portal, and Instagram and will eventually be offered on WhatsApp. Facebook Pay continues to roll out in other countries too.

Facebook's Security Measures

With sensitive services like Messenger and Facebook Pay, many users wonder what kind of security measures Facebook includes to protect its users. The connection is encrypted by Facebook. Encryption is the process of using an algorithm to turn critical information—such as credit card and bank account numbers—into an unreadable format. Moreover, Facebook uses an additional layer of encryption for financial information submitted through Messenger and Facebook Pay.

Additionally, when sending or receiving money, Facebook only shares your name, profile photo, and the dollar amount between you and your friend. The info the app asks to verify your identity is not shared. To confirm your identity and prevent fraud, Facebook may ask you to provide additional information, such as your legal name, date of birth, zip code, last four digits of your Social Security number, or answers to multiple-choice questions that only you would know. Because Facebook Pay also allows purchases, anti-fraud technology monitors purchases to detect unauthorized activity.

Users who seek even more security can require a personal identification number (PIN) to send money. This prevents fraudulent transactions if an unauthorized user gets their hands on your computer or mobile device.

Another security option specific to iPhone and iPad users is Touch or Face ID, by which the device analyzes your fingerprint or facial features to ensure you are authorized to send money.

More Tips to Keep Your Account Secure

There are additional measures you should take when sending and receiving money via Facebook to keep your account safe. You should only send and receive money from people you know and trust. Protect your Facebook account by activating two-factor authentication (2FA), which is a second layer of security.

Don't accept friend requests from people you don't know, even if the requests seem to come from people who are "friends of friends." Cybercriminals will hack into existing accounts of people you know and pose as friends in order to gain your trust. They might set up an elaborate fake online identity—a strategy known as cat fishing. They'll use Messenger to send messages requesting money. These fraudsters will use a variety of common money scams, including donation, lottery, romance, loan, and inheritance scams.

1.3 billion

The number of people using Facebook's Messenger app monthly in 2020.

The Bottom Line

No information is ever 100% safe on the internet, regardless of the security measures in place. Widely reported large-scale hacking incidents have made some consumers wary of making financial transactions using their phone's apps.

While such high-profile incidents understandably make internet users nervous, the fact remains that the biggest security threat to your information online comes from failing to secure your personal devices. Be sure to password-protect your computer and mobile devices to help prevent unauthorized users from accessing them and wreaking havoc. And install a robust antivirus or anti-malware program to help detect threats such as keystroke loggers, which record the keystrokes you make to a log file and sends them to an unauthorized third party.

Источник: https://www.investopedia.com/articles/personal-finance/092315/it-safe-send-money-through-facebook.asp
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Looking for quick answers? Our Support team has rounded up the top questions we get and listed ‘em below for easy reference. If you can’t find what you’re looking for here or elsewhere in the help site, reach out and a team member will be happy to lend a hand. You’ll get a response from a real person, not a bot. 😉🙌

Account Basics

How do I change my password?

To change up your password in the admin, you’ll head to the Security section from the Account area. Click Change your password and then enter your current password and your new password there.

If you don’t remember your password, then we can send you an email that’ll include a link you can use to easily create a new one - just click this link and enter your account’s contact email.

How do I change my shop name or URL?

You can change both your shop name and url from the Account area in your Big Cartel admin. To change your shop name, click Edit profile and adjust your shop name there. Click Edit your shop info to change your Shop URL and click Save changes. Our system will let you know if the new subdomain you choose is available or not.

How do I change my contact email?

Your shop’s contact email can be changed from the Account area in your admin. Click Edit profile and adjust the contact email there. For added security, you’ll need to enter your password to verify the change. Keep in mind that the contact email is used to determine account ownership. You’ll want to make sure you are using an email that can send and receive emails and be sure to triple-check your spelling before saving your changes!

How do I close my account?

To close your shop, log in and complete the closing process here.

Just keep in mind, closing your account is permanent - we won’t be able to recover any store data for you down the road so you may want to download your order data beforehand.

Does Big Cartel make the products I sell?

Big Cartel doesn’t offer order manufacturing or fulfillment, so you’d want to get your merchandise created on your end. Then as orders come in, you’d be responsible for shipping them out. Our job is to provide the hosting for your web store/checkout system.

If you’re looking for spots to help manufacture your goods or sell via print-on-demand, check out our integrations with Printful or Art of Where.

Adding Products

How do I add options like colors or sizes to my product listings?

You can do that with our product options feature. As you’re adding your products into your shop, you can include variants like the size or color of a product under the Options section.

Got more than one set of options? You can display options in multiple lists in your storefront with the product option groups feature.

Can I limit the number of a specific item that is sold?

Yup! If you’re on a paid plan, you can use our inventory tracking feature. You’ll find that under Account > Preferences in your admin. Once you enable that feature, you’ll be able to add quantities directly to your product listings.

When products are purchased, the inventory will automatically adjust. So when a product or option’s inventory reaches zero, it will display as ‘sold out,’ preventing further purchases.

More on inventory tracking here.

How do I charge shipping?

Once you’ve landed on how and where you’d like to ship your products and estimated that cost for each product, you’ve got two shipping options – you can set up shipping on a per-product basis, or you can create shipping profiles. To set up shipping on a per-product basis you’ll head to the Products tab and enter those rates in the Shipping section for each product.

You’ll notice there is a Shipped Alone and a With Others field. The highest “alone” shipping cost among the items in the customer’s cart is added in first. Then, the “with others” costs are added in for every additional item the customer is buying.

So if you want to give the customer a break in shipping when they buy more than one item at a time, be sure to keep the “with others” amount less than the “alone” amount.

More details on setting up your per-product shipping rates here.

If you want to use shipping profiles, which are handy if you’ve got the same shipping rates for all your products, then you’ll head to the admin’s Account tab. Scroll down to the Shipping profiles beta section, click to edit shipping, then toggle on shipping profiles. From there you can create shipping based on zone, and you can even offer different expedited options to your customers. Just keep in mind that enabling shipping profiles will override any shipping you may have added to your indivdual products.

There’s more info on how the shipping profiles work here.

I’m not seeing all of the products display in my storefront?

It sounds like you may be looking at the featured products displayed on the home page. If you’d like to display more products on the home page of your shop, you can adjust that number by clicking Customize design from the Account tab in your admin and then clicking Customize. In the Customize panel, you’ll see the option to adjust number of featured products. Keep in mind, your customers will also be able to view all of your products from the Products page in your shop.

How do I add product categories?

You can create categories in your shop in the Products section of your Big Cartel admin by clicking the three-dot Actions menu > Manage categories.

Then, within each product’s edit page you’ll see a Categories button that you can use to assign that specific product to a category. A category with at least one active product assigned to it will have its own link displayed within your shop.

More details on managing categories here.

What size images should I use for my products?

Each theme will display product images a bit differently to fit the design, so there isn’t a specific set of dimensions to use. Your best bet to get the most out of the theme you’re using is to upload large high-resolution images that are all the same size and orientation to create a consistent, uniform look.

To get those images looking nice and crisp try keeping them at least 1000px wide, and we’ll do the heavy lifting to resize them as needed to fit within your theme’s design constraints.

You can also check out our Themes help pages for specific recommendations on elements like slideshows and header images, which tend to vary across themes.

I’m getting an error when adding or editing products - “At least one option’s price must match the base price.”

This error typically means that all of your added product’s options have a different price from the base price of your product so you’ll need to adjust either the base price or one of your options’ price.

This error could also display if you are using Microsoft Edge or an older version of Safari. We are working on a fix for this issue. In the meantime, switching to a browser like Chrome should do the trick.

Managing Orders

How do I refund or cancel an order?

Since Big Cartel doesn’t actually handle the payments, those refunds will be issued directly through Stripe or PayPal, depending on which checkout option was used at the time that particular order was placed.

You can click the “view in Stripe” or “view in PayPal” link for that order to complete the refund offsite through PayPal or Stripe. We have some more info on that here.

There isn’t a way to entirely delete an order in your admin after the payment has been refunded, but you can add a “private note” stating the order was refunded to help you keep track of things. Then, you can go ahead and mark that order as shipped to get it out of your way. Here’s more info on adding a private note if you’re curious.

Getting Paid

How do I accept payments?

You can accept online payments in your shop via Stripe and/or PayPal. With PayPal enabled, you can also accept PayPal Credit and Venmo (as long your customer is on a mobile device and has the Venmo app installed). There’s more info on setting up your shop’s online checkout here.

With Stripe enabled in your shop, customers using Apple Pay will have the option to complete their purchases directly from a product listing with Instant Checkout.

If you are using in-person checkout in our iOS or Android app, you can accept cash and credit card payments - either manually or with a card reader - via Stripe Terminal.

Does Big Cartel offer more payment options like Afterpay?

Right now we have support for PayPal (including Venmo and PayPal Credit) and Stripe (for card payments).

We keep the payment processors limited so we can provide the most seamless and secure integration for the majority of our shops, while keeping things simple and not bogged down with a bunch of options. For those reasons, additional payment processors, like Afterpay aren’t on our radar at the moment.

Do I have to have a PayPal Business account?

That’s correct! PayPal requires a verified business account to accept payments in your shop. But no worries, it’s simple to upgrade your account. You can login right here to upgrade to a Business account for free.

And there’s some info about how to verify your account here.

After that, you should be all set to accept PayPal Commerce Platform payments in your shop!

How do I update my bank account that payments are sent to?

If you are using Stripe to accept payments in your shop, you can update the bank account in your Stripe dashboard. There’s more on that here.

If you use PayPal, you’ll update your bank account info in your PayPal account. There’s more info on that here.

Customization

Can I translate my shop to another language?

We don’t actually have a built-in tool to change the language of your site, but all of our stores on paid plans have access to their HTML. So, you could either go in and translate your code by hand, or you could embed a translate widget. There are quite a few options out there like the one Bing offers here.

You could also check out an app like Weglot that’s super simple to integrate with your Big Cartel shop and will display your site in multiple languages.

How do I add images to custom pages?

If you want to include an image on a custom page in your shop, you’ll first need to host your image through an external hosting service - there are lots out there! A couple worth checking out are free services like Pasteboard.co or Dropbox.

For Pasteboard, after the image is uploaded there, you’ll click the ‘Go to image’ button and then copy the Embed URL. Here’s a handy video to help out with that!

For Dropbox, you’ll copy the “share” link for your image in Dropbox. Then you’ll need to modify the end of that URL so that it instead of ending in dl=0, it now ends with raw=1. Here’s a quick video walkthrough.

Next, go back to your custom page editor in the Big Cartel admin and click the add image icon in the toolbar (it’s next to the little button that says HTML).

Now paste in the Embed URL you copied earlier.

Can I add customer reviews to my shop?

Sure, stores on paid plans can use third party integrations or widgets to embed reviews or a feedback form.

For example, a service like Disqus or Testimonial Robot might have the tools you’re looking for. They’ll provide an embed code that you can copy and paste into a custom page in the design section of your admin.

Custom Domains

Can I use my own domain?

Yes, all Big Cartel shops — even those on our free Gold plan — can use a custom domain with their shop. There’s more info on that here.

Can I remove the .bigcartel from my URL?

There’s not a way to delete or deactivate your store’s bigcartel.com URL, but you can definitely use a custom domain as well.

First, you’ll need to purchase domain from a DNS provider. If you are in a Google-supported country, you can purchase a domain directly in your admin.

If you are not in a Google-supported country or would prefer to use another provider, we have a list of DNS providers along with instructions on mapping your domain here.

Security

I received a suspicious email claiming to be from Big Cartel. Is this legit?

If you received a suspicious email, please don’t click any links in that message until we can verify that it was sent by us. Please forward it to support and we can take a look.

Is my shop SSL-encrypted?

Each page in your online storefront is SSL-encrypted as is the backend admin, so any time sensitive data like payment details are passed, it’s encrypted.

However, if you see a red lock in the Account area of your admin, it means that your domain is not currently SSL-encrypted. This is due to a problem with your custom domain redirect settings, unsecured assets detected in your shop, or the SSL certificate’s failure to generate. There’s more information on how to resolve those issues here.

Integrations

How do I set up Instagram tagging (shoppable posts) for my products?

While we don’t have a direct integration with Instagram, you can manually set up shopping on Instagram by following our step by step instructions here. Just keep in mind that Instagram and Facebook must approve your products to be tagged in your Instagram posts. We can’t guarantee that your products will be approved, but going through this process will definitely get your products on their radar.

Can I add a newsletter signup?

Sure thing! With the MailChimp integration, you can enable a Subscribe to our newsletter box automatically at checkout so customers can opt in to receive your newsletter, sync up your customers info and purchase data with your MailChimp account, and even send custom order confirmations. You can also implement more targeted newsletter campaigns and easily embed a newsletter signup in your shop.

You can find more info on the MailChimp integration and how to connect it to your Big Cartel shop here.

Billing

Can I upgrade or downgrade my plan at any time?

Definitely! You can upgrade anytime if you find you need more product listings and features. Or you can downgrade if you don’t end up using the paid features. All of that can be done from your Big Cartel admin by clicking Account > Edit your plan & billing > Change your plan.

Источник: https://help.bigcartel.com/faq
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Security researchers have spotted a new PayPal phishing email scam that tries to steal a victim’s Social Security Number (SSN), among other sensitive data.

The attack email informed a victim that their PayPal account was locked, and it instructed them to click a “Secure and update my account now !” button. Doing so directed a user to a bit.ly link pointing to a redirection mechanism, which sent them to a phishing website.

The first page on the site asked the user to provide their PayPal credentials. After receiving those details, the scam instructed them to confirm their billing details including their address and phone number. Next, it moved on to requesting a user’s payment card details.

It’s at that point when the campaign went for broke and attempted to gain as much as possible from the user. It did this by asking that the user provide their birth date, Social Security Number and card PIN.

The scam wanted one more piece of information at that point. As SANS Internet Storm Center (ISC) Handler Jan Kopriva noted in a post:

They didn’t stop even there however, and on the last page asked the user to upload a photo of a valid ID or credit card. What might be a bit unfortunate from the standpoint of a potential victim is that after the user uploads a file, the page is refreshed but no confirmation is displayed. This means that a less vigilant user might upload multiple photos of documents while thinking that their previous attempts were invalid for some reason.

Kopriva reported the scam to PayPal but noted that it could take some time for the service to take it paypal business account ssn of this scam follows less than two months after researchers spotted a PayPal ruse using a valid SSL certificate to steal a victim’s bank account credentials, payment card details and email login data.

Источник: https://www.tripwire.com/state-of-security/security-data-protection/new-paypal-phishing-email-scam-wants-your-social-security-number/

It's going to become harder to avoid telling the IRS about income from selling stuff online. Here's what to know

All that money you make selling stuff online? Don't overlook the taxman.

Depending on your situation, it's possible that you're generating income that the IRS wants to know about. And if you're an ongoing seller, be aware that it could become harder after this year to avoid income-reporting requirements.

While the tax law applying to such transactions hasn't changed, it just has become more visible, said Cari Weston, director for tax practice & ethics with the American Institute of CPAs.

More from Personal Finance:
Buying a Tesla with bitcoin could mean a tax bill
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A decade-by-decade guide to retirement planning

Under current rules, individuals who sell goods or services via platforms like Uber, Ebay, Etsy and others that use third-party transaction networks (i.e., PayPal) generally only receive a tax form if they engage in at least 200 transactions worth an aggregate $20,000 or more. That form, called a 1099-K, also goes to the IRS.

Starting next year, the federal threshold for issuing the 1099-K will drop to $600 with no minimum transaction level, due to a provision in the recently enacted American Rescue Plan Act. (Some states already have lower minimums.)

This means that in early 2023, you could receive a 1099-K for online sales you make in 2022. And this would be the case whether you're an occasional seller or are operating as a business, as long as you sold more than $600 worth on a single platform. It doesn't necessarily mean you'd be taxed on the money, but you would need to account for it on your tax return.

Ebay is among the platforms that would be affected by the new reporting rule, and the company is working with lawmakers to address any issues it may cause.

"EBay believes in following the law and proper tax accounting," said an eBay spokesperson. "Sending confusing 1099-Ks to nearly every occasional or casual seller that uses an online platform to earn extra income, however, is not paypal business account ssn right approach."

Additionally, in order to issue a 1099-K, a Social Merrimack county savings bank jobs number is required, which makes some of the affected companies worry the requirement would be a turnoff to sellers, said Garrett Watson, a senior policy paypal business account ssn at the Tax Foundation. Not all of these platforms routinely collect that information.

However, because of the current high threshold applied to the 1099-K, even sellers who have a clear profit motive may not receive the form — meaning neither does the IRS, which can lead to underreporting of income.

"A good share of folks on these platforms may not be reporting the income, and the IRS isn't getting that information, either," Watson said.

At last count, the tax gap — the difference between what taxpayers owe and what they pay — was an estimated $381 billion per year, according to a 2019 IRS report that examined data for 2011, 2012 and 2013.

Regardless of whether you receive a tax form, there are instances when the income you earn from your online sales should be paypal business account ssn to the IRS.

Here's what to know about the tax rules that apply.

What's taxable

If your sales are akin to having a garage sale — i.e., you unload belongings for less than what you originally paid — there typically is no reason to report what you pulled in, said Weston at the Paypal business account ssn Institute of CPAs. Essentially, there is no "income" to report.

Of those who have sold pre-owned goods on Ebay, for instance, 85% plucked items from their house — things they already owned and no longer used, according to a recent report from Ebay.

Otherwise, the taxation depends on the situation. 

A good share of folks on these platforms may not be reporting the income and the IRS isn't getting that information either.
Senior policy analyst at the Tax Foundation

Generally speaking, if you're paypal business account ssn to make a sunflower bank online banking login for reasons that go beyond nurturing a hobby, you probably would be considered a business owner for tax purposes. For instance, if you regularly buy clothes at yard sales (or other discounted spots) and sell them — whether online or not — with the intent of making a profit, that counts.

The good news is that as a business owner, you can subtract your expenses from the money you earn. And if those costs exceed your business income in a particular year, you can subtract the resulting loss from other income you report on your tax return, Weston said.

The IRS expects to hear from anyone whose net earnings from self-employment are $400 or more. And although you would be required to pay self-employment taxes of 15.3%, you can deduct half that amount elsewhere on your return. 

The IRS also wants to hear about income you generate from a hobby. Unlike with business losses, though, taxpayers can generally only deduct applicable expenses up to the amount of the hobby income. In other words, the excess (the loss) cannot be deducted from other income.

"However, because it's paypal business account ssn hobby and not a business, you don't have to pay self-employment taxes on the income," Weston said.

Figuring out whether you are selling as a hobby or a paypal business account ssn can sometimes be tricky. The IRS has some tips on its website intended to help taxpayers make a determination.

Meanwhile, sometimes a belonging is more valuable when you sell it than when paypal business account ssn acquired it, whether via a purchase or gift. Your profit generally would be the difference between your cost basis — its value when it came into your possession — and what you sell it for.

In these one-off cases, the profit would get treated as a capital gain. Generally, that means it's either taxed as ordinary income if you held the asset (the item) for less than a year, or else it's considered a long-term gain with a tax rate of 0%, 15% or 20%, depending on your overall income.

However, there are exceptions to those rates, including the 28% that gets applied to gains from the sale of things like fine arts, collectibles, antiques, stamps, coins and some jewelry, Weston said.

Источник: https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html
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