Starting Jan 1 2022 Paypal will now send the IRS a 1099 for each user that receives more than $600 in goods and services throughout the year. BIG change from previous years where you could receive up to $13,000.00 and have 200 transactions.
They don't report money received if sent Friends & Family. You can send a happy birthday note, personal gift, etc. but if you don't consciously pick Friends & Family while you are clicking through the process of sending money, it is set to Goods & Services BY DEFAULT so that Paypal makes sure they get their 3% or whatever they get now.
Just a PSA for those who use Paypal...