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Paypal Tax ID

Forums: General Discussion
Created on: 05/09/15 01:19 PM Views: 982 Replies: 8
Saturday, May 9, 2015 at 1:19 PM

I'm ready to throw my hands up! HELP PLEASE! I am trying to set up Paypal for my reunion. The tutorial said to get a Business one. They ask for tax id or non profit number. Am I supposed to have these? I've searched and read for three days and I can't fugure out this "easy" process.
Thanks bunches from East Texas

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Sunday, May 10, 2015 at 12:28 AM - Response #1

Hi,
I see you've had 32 views and no replies. Maybe because it's Saturday. I don't know. Anyway, I have a PayPal Business account and used my soc. sec. # for my tax I.D.. PayPal accepts that. It's under your name as signer but is listed under your school Name.
Different states charge differently to establish a 501K which is a non-profit status. Mine was a very small school with only 75 in my graduating class. I now live in Arizona and here the state charges $500+ for that non-profit status. It wasn't worth it for me. I told PayPal and they informed me I could use my s.s.# but then I am responsible for reporting any profit from the site. Well, the profit is donated by me back to a PayPal Debit Card in my name used exclusively for the reunion. So there's no problem.
First thing is to check with your state and see what non-profit status costs. Then decide which way to go. BTW, I still have the website open for a 2nd reunion in 2018 and still maintain the debit card.
Hope this helps.
Barbara

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Sunday, May 10, 2015 at 1:30 AM - Response #2

Correct, a SSN is a tax id. PayPal must report to the IRS totals exceeding $20,000 or over 200 sales. So be careful. This actually also applied to the prior CC payment method.

I recommend talking to an accountant since large classes can easily exceed 200 sales.

This rule is probably what triggered the change to "Business Accounts" for everyone.

For more info refer to this link https://www.paypal.com/us/webapps/mpp/irs6050w

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Edited 05/10/15 1:30 AM
Sunday, May 10, 2015 at 8:25 AM - Response #3

I have both. You can apply online for tax id number online. Do not pay for it. They are free on the govt website.

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Sunday, May 10, 2015 at 8:25 AM - Response #4

I have both. You can apply online for tax id number online. Do not pay for it. They are free on the govt website.

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Sunday, May 10, 2015 at 4:28 PM - Response #5

Theresa,
I didn't know that about the free tax I.D. Thank you.
And Jack,
thank you. I was working on the old CC rules too. Didn't know they were updated. Been in the hospital with a partial amputation. Home now and back to the computer.
Barbara

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Tuesday, May 12, 2015 at 11:39 AM - Response #6

Thanks to all.
Barbara, well wishes for a fast recovery from Tyler, Texas!
I will email the class and see who is a CPA and ask them to assist me in this process. If the $20,000 is per year we don't have a problem. We are able to have a reunion for 3 days for about $50 per person. We are planning on about 200 classmates and 100 guests. Our committee is providing the food for the poolside meet and greet Friday night. Dinner, dance is Saturday night with shopping and golf during the day. Sunday we will have a devotional around the pool and those that don't have to hit the road will pay for their own lunch. We have a classmate that owns the BBQ Company and is providing the food at a discount, (perfect for East Texas) one that is a DJ and one that is a minister and song leader. We made arrangements for the Hotel for the Friday Noon through Sunday noon for $1,800. We are also getting a group room rate of $89 instead of $139.
Again, thanks!
Cindy

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Tuesday, May 12, 2015 at 2:21 PM - Response #7

Great Cindy, Sounds like you have everything covered. Yes. I believe the $20000 is per year. Thank you for your well wishes and prayers. I can use them all.
Barbara

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Tuesday, May 12, 2015 at 2:22 PM - Response #8

Great Cindy, Sounds like you have everything covered. Yes. I believe the $20000 is per year. Thank you for your well wishes and prayers. I can use them all.
Barbara

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