I have a 1099K from Paypal. The income is not buisness related or rental income. It is from my dad giving me money. How do i list this?

[npierson7]

You don't need to report payments received from your father as income. It is a simple transfer of funds. You'll need to keep detailed records of your funds received, especially any received through PayPal. If you have detailed records matching PayPal receipts then you'll have the documentation needed if the IRS asks you to prove the payments weren't your income. 

Keep in mind, it could potentially create a tax liability for your father and he might need to file gift tax return and pay applicable gift taxes. 

[Ejr84]

What if the federal rule is supposed to be that my 2021 PayPal money is off-limits to the irs, meaning, it’s supposed to be the last year you don’t file 1099k’s unless you hit the 20k/200 transaction threshold? Except I live in Maryland, and evidently they’re one of the states that jumped the gun last summer and implemented it?? So do I add my $3000 PayPal 1099k to my tax return THIS year, or don’t I???? It’s SO confusing. 

[Opus 17]

Gifts are never taxable income, but they can trigger a reporting requirement.  There are two ways to deal with this on your tax return.

1. Enter the 1099-K as "other income."  Then go back and create another item of other income with a negative value (minus sign) equal to the 1099-K to offset it.  Call it something like "1099-K adjustment for non-taxable gift."  You can e-file with this solution.

2. Leave the 1099-K off your tax return.  File by mail and attach a copy of the 1099-K and a written explanation of the gift.

In either case, the IRS may send you a letter asking for more details, so keep records related to the gift and the transactions for at least 3 years.  The IRS used to recommend #2 but they are so backlogged with paper returns that I would use #1 so you can e-file.