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PayPal info withdraw limit

kev5982

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When did PayPal start limiting the amount you can withdraw from your account per month. Mine is set to $500, and the only way to increase it, is to give up my social and link and confirm my credit or debit card on the account.

Thank,

Kevin
 

Tank

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Government wants to make sure they get whats coming to them when the time comes.

I have no limit, but I registered
 

kev5982

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Hey thanks for the info, so if you give up the info, they will be tracking your activity.
 

Saintsfanfl

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When did PayPal start limiting the amount you can withdraw from your account per month. Mine is set to $500, and the only way to increase it, is to give up my social and link and confirm my credit or debit card on the account.

Thank,

Kevin

Probably when Paypal first started. It's been that way for at least 5 years if not since inception. $500 per month is the default limit unless you take action to increase.

This limit has absolutely zero to do with the government. This is a security feature to protect the account holder from an unauthorized fraudulent withdrawal.

Hey thanks for the info, so if you give up the info, they will be tracking your activity.

Not likely. You would have to reach the high threshold of a 1099 from a payment processor before the IRS would have it tracked. That said, income is still taxable and not reporting it can be a felony.
 
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ekajun1957

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I do believe though that all transactions are tracked if over $5000. Sure government don't look at everyone but they can.
 

DavidnRobin

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I have no limit on PayPal that I am aware of (most I transferred is ~$2000), and never had to request an increase. My account with them goes back about 10 years.
 

DeniseM

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Paypal has had my social security number, and bank acct. info. forever. Just as you would expect to give it to a bank, or credit card company, or any other financial institution, if you opened an Acct. with them. I would not be concerned about providing this Info.

You generally have to go over $20,000 before Paypal issues a 1099. However, if you get audited, the IRS will discover your Paypal Acct., whether you go over $20K and received a 1099, or not.

How will I know if IRC Section 6050W affects me?

PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:

-$20,000 USD in gross payment volume from sales of goods or services in a single year

-200 payments for goods or services in the same year

You may be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.

If you cross the IRS thresholds in a given calendar year, PayPal will send Form 1099-K to you and the IRS for that year early in the following year.

MORE INFO: https://www.paypal.com/webapps/mpp/irs6050w
 
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Saintsfanfl

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I do believe though that all transactions are tracked if over $5000. Sure government don't look at everyone but they can.

Where do you get this number from? I'm not saying it doesn't exist but I do not know of any legal method of reporting based on this $5k number. The Currency Transaction Report threshold is $10k but that is for a cash transaction and this does not qualify. The CTR is a countermeasure against money laundering and counterfeit currency. It does not apply to electronic transactions.
 

mjkkb2

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Where do you get this number from? I'm not saying it doesn't exist but I do not know of any legal method of reporting based on this $5k number. The Currency Transaction Report threshold is $10k but that is for a cash transaction and this does not qualify. The CTR is a countermeasure against money laundering and counterfeit currency. It does not apply to electronic transactions.

What do you mean by cash transactions only? Are you saying that it only applies to cash transactions, which would also include electronic money transfer?

I had 10k+ wire transfer from oversees that triggered the report.
 

SMHarman

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What do you mean by cash transactions only? Are you saying that it only applies to cash transactions, which would also include electronic money transfer?

I had 10k+ wire transfer from oversees that triggered the report.
Banks are a little over the place on this.

A 10k wire transfer from overseas is not likely to need reporting per the rules as it has a clearly defined source. However out of an abundance of caution a bank may choose to report. So far no bank has been penalized for over reporting on this rule.

This all said, once again the law writing without an indexation clause has made this rule compliance more onerous over time and it's continued existence pushes the move to a cashless society and the centralized risks that creates.
 

Saintsfanfl

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What do you mean by cash transactions only? Are you saying that it only applies to cash transactions, which would also include electronic money transfer?

I had 10k+ wire transfer from oversees that triggered the report.

A wire will trigger a CTR if it started or ended with currency. Essentially it is a cash transaction with the wire being the method of delivery due to the distance. The wire would not trigger a CTR if it is being sent from an existing account to an existing account and therefore no physical currency changed hands by the sender or receiver during the day.

As stated by SMHarman I suppose a bank could report on all wires but that would be a pain.

There is also an SAR which is a suspicious activity report. The customer will not even know one has been filed. There are some $5k thresholds on it so this may be what ekajun1957 was referring to but an SAR is not common or automatic. There needs to be some level of knowledge or suspicion of fraud or illegal activity. That said, when a customer refuses a CTR and instead cancels the transaction it automatically triggers an SAR.
 
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ronparise

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paypal generates a 1099 if you exceed $20000 income to the account and 200 transactions (actually I think its 200 invoices,)

But Denise is right just because you dont get a 1099 doesnt mean you dont have to report the income...You do and you have to pay taxes on that incom less expenses


To the original question I have a $400 daily limit on my paypal debit card and a $1000 limit on the amount they will let me take when there is no money in the account (they go to my linked bank account for any shortfall up to $1000) but to my knowledge there is no limit on the amount I can transfer from paypal to my bank except that I cant transfer money thats not there) Ive moved as much as $14000 in one transaction
 

jjmanthei05

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When did PayPal start limiting the amount you can withdraw from your account per month. Mine is set to $500, and the only way to increase it, is to give up my social and link and confirm my credit or debit card on the account.

Thank,

Kevin

I think this may also have something to do with preventing fraud \ money laundering by limiting withdrawal limits if they don't have a SS# & bank account for you.

Jason
 

kev5982

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So I gave them my social and they lifted the limit.
It said they need it for security reasons.
Thanks for the help

Kevin
 
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