Is this expense a type of income?

if paypal charges me $3 on my credit card to verify my identity and then puts this money into my paypal account,is this income or not? i need to know for tax purposes.

 

on the CC, it is an expense.

in your Paypal account it is an income.

net effect = 0.

 

also, "is this expense a type of income"

when has an expense ever been an income?

 

It is a wash. To be 100% correct you would record the the $3 expense and the $3 income. Net income = 0.

Same principle as a returned check. The return is noted as negative income and the redeposit if you are that luckey is recorded as income.

 

It is not income or an expense. You are simply moving funds from one asset account to another asset account. If you PM me with the accounting program you are using, I'll tell you how to enter it.

 

it is money laundering

 

It is an expense and then an income and zero's itself out.

 

net affect is 0 so do now worry about..

in general the amounts are so small.. IRS would never come after you for not payment taxes on $3..