We do not issue 1099-MISC forms to partners who receive their royalties from us via PayPal payments. The Internal Revenue Service does not require us to include payments made via PayPal on Form 1099-MISC, and as PayPal is currently the only means of withdrawing partner royalties, we do not issue 1099-MISC.
Beginning in 2022, the Internal Revenue Service requires Paypal to send a Form 1099-K if total payments into your Paypal account over the course of a calendar year are at least $600 (down from $20,000 previously). There is no longer a requirement to meet a certain number of individual transactions/payments within a calendar year, in order for Paypal to send a 1099-K.
Therefore, a single payment made via Paypal during the calendar year, totaling $600, will require Paypal to send a Form 1099-K. Paypal sends copies of 1099-Ks to the Internal Revenue Service.
Many partners may not meet the threshold for PayPal to send a Form 1099-K. In this case, partners will neither receive a Form 1099-K from PayPal, nor will they receive a Form 1099-MISC from us.
Such taxpayers can then self-report this royalty income with their annual tax-filing by going to their Account page’s My Money section and visiting the Customer Account Payment History page. This page will report the total payment amounts made via PayPal during the calendar year. For purposes of reporting this royalty income, the payer is our site’s parent company OneBookShelf, Inc..
4593 Hancock Way SW
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For partners who also have publishing partner accounts with DriveThru marketplaces, you may have additional payments from DriveThru made by PayPal or by check from your publishing partner account. See the Publisher Knowledge Base tax information section for more information.