If you hit the number, Paypal will demand your SS# before they will let you transfer the money out of Paypal. Then they will send you a 1099, and it will be up to you to figure out which SB activities are taxable. It is listed on the SB website. The rules have changed and for 2022 Paypal will now have to report any money earnings over $600. I think SB was already asking for that info if you hit $600 in gift cards, I had been cashing out everything to Paypal after my first discounted GC every month to avoid that.
From the website - Upon reaching $600 or more in SB redemptions in one calendar year, you will be prompted to fill out the required tax information about yourself.
You will not be allowed to continue redemptions (except for PayPal and Gambit) for the rest of the calendar year until you successfully complete the tax form.
Common Questions
Q: What types of SB redemptions count towards the $600 IRS threshold?
A: All Gift Cards and Rewards, except: PayPal & Gambit
Q: Which earning activities count towards being taxable?
A: The following activities
ARE classified as taxable:
- Registration/Promotional/Referral
- Search
- Answer (Surveys, Tasks & Any Receipt)
- Games (except GSN)
- nCrave /Watch
- SB Live
A: The following activities
ARE NOT classified as taxable:
- Gambit Earnings
- Discover / Offers
- Shopping
- GSN
- In-Store Deals
- Buy SB