Paying for Goods(ies)

[Mike Goetzke]

I was going to purchase an item that is too far of a drive to pick up. The seller will not use Paypal because he said on his last transaction they withheld 24% tax. Is this true? Is there another way to still be protected and send funds?

Thanks

 

[4nthony]

PayPal, Zelle, and I believe Venmo, allow you to send money without fees.

In PayPal, you can specify "Friends and Family". (EDIT: Just noticed you mentioned "...and still be protected". For that, I don't know)

As for the 24% fee, the person is probably doing a lot of "goods and services" transactions (more than $600/yr) and has not given PayPal sufficient information for them to issue a 1099.

https://www.paypal.com/us/cshelp/article/help1131

 

[squall_line]

PayPal, Zelle, and I believe Venmo, allow you to send money without fees.

In PayPal, you can specify "Friends and Family". (EDIT: Just noticed you mentioned "...and still be protected". For that, I don't know)

As for the 24% fee, the person is probably doing a lot of "goods and services" transactions (more than $600/yr) and has not given PayPal sufficient information for them to issue a 1099.

https://www.paypal.com/us/cshelp/article/help1131

The best (worst) part of the 1099 withholding by PayPal is that the government decided to kick that can down the road yet another year.  I wonder what PayPak is doing with those withholdings now...