Income tax and Paypal checks

[nikon]

Hello

I am working as online freelancer and getting my payment in paypal. I am requesting check or bank transfer. How could I show it in my income tax statement. Can I show my sending paypal money as an expenses?

Please guide

[DianaR]

Print out the Paypal statement to show what income went into your bank account, then look at the expenditures from your bank account associated with your freelance activities. That should help you figure out what went out as expenditures for your freelancing, as well as fees for Paypal's check processing.

If you don't want to tell the IRS exactly what you did as a freelance, or you can't find an industry category for what you did, use the code provided for "other" or what ever is equivalent.

I have used the 9999 code for years, but that code might have changed.

[JoelJonathan]

Using PayPal to send money is no different than writing a check or sending a wire transfer as far as substantiation for tax purposes is concerned.

[premanand]

it is the gud suggestion.iam getting a lot of money from paypal.it exceeds the level.how would i show u proof of income?

[donald]

yes of course that using a pay pal is not the big topic...
its simply you use a check for getting your cash payment like that...
so that's not a big issue...
there is no any complexity in it. its easy also..

.............

[viraj_zaveri]

hey nikon,
i guess you should ask your tax consultant.
He only can give you proper guidance.

[donald]

hey in paypal payment process i know that they take a 50 RS for the transaction tax...
if your amount is below 7000 Rs...