New 2023 Tax Burden

[buy-here-save-here]

There is a new tax bill trying to be passed to lower the reporting threshold from $20,000 to $600 with no transaction minimum. This will undoubtedly hurt a lot of sellers and many other businesses as well. How do you feel about this new tax burden? 

[the_fancy_fox]

That passed already. 

Personally? I pay my taxes so it’s a non issue for me. 

[nocoolnamejane]

It’s already been passed…

[maxine*j]

Click on this link to the hundreds of threads on this topic and begin reading to find out how people feel:

https://community.ebay.com/t5/forums/searchpage/tab/message?q=1099&collapse_discussion=true

And, by the way, it is a new reporting requirement, not a new "tax burden."  Your tax obligation remains unchanged by this. 

-

[hartungcards]

If you have $6 in sales, you're technically supposed to report that.

[fern*wood]

The threshold only refers to receiving a 1099k, there is no new tax.  It might be a burden only if a seller wasn’t reporting their sales.

[theteamsetguy]

Buy-here-save-here,

Its only a tax burden if you have not been paying your taxes. Just because it wasn't reported previously didn't mean you didn't have to claim the income and pay taxes. 

Everyone should pay their fair share to live in best country on the planet. 

[hartungcards]

Everyone should pay their fair share to live in Denmark?

[r_lresale]

Any income is supposed to be reported to the IRS regardless if one received a 1099 or not and the threshold for issuing the 1099 makes no difference. Reporting gross sales/income does not necessarily mean you are taxed on that amount. Every persons tax situation is different but after even the most basic deductions one could take (shipping costs, shipping supplies, cost of goods, etc.) ones net income would likely require little to nothing as far as taxes owed. We have been selling on multiple platforms for 3 years and have reported all sales/income every year. The first two years my husband also had a full time regular job and even with that we owed no taxes and in fact got a refund. As I said everybody's situation is different but just saying the threshold for issuing is not as scary as everyone thinks it is.

[alky181]

Don't vote Democrat. They are the ones that came up with this.  

[hartungcards]

You're about a week late on that advice.

[reallynicestamps]

You  got income?

You report income.

[reallynicestamps]

https://www.forbes.com/advisor/taxes/taxes-federal-income-tax-bracket/

2022 Single Filers Tax Brackets

If taxable income is: The tax due is:

Not over $10,275	10% of the taxable income
Over $10,275 but $41,775	$1,027.50 plus 12% of the excess over $10,275
Over $41,775 but not over $89,075	$4,807.50 plus 22% of the excess over $41,775
Over $89,075 but not over $170,050	$15,213.50 plus 24% of the excess over $89,075
Over $170,050 but not over $215,950	$34,647.50 plus 32% of the the excess over $170,050
Over $215,950 but not over $539,900	$49,335.50 plus 35% of the excess over $215,950
Over $539,900	$162,718 plus 37% of the excess over $539,900

Note that not all income is taxable.

[oldwestgold]

This is old news. This passed a year or two ago. I don't understand why some sellers are worried so much about paying taxes on their sales, especially if under $600. I use to be one of those 20 years ago, but it really is not that painful. Sales Tax licenses are a non-issue also. They help to keep you legit and also provide sales tax exemptions on items used for your business, including buying here on eBay.

The app Wave, like GoDaddy's retired online Bookkeeping app, takes care of all of the hassle of maintaining your records, including generating tax forms and information when it comes time. Sales/Expenses - It's not rocket science.  The people at WAVE are extremely helpful with one-on-one help, especially for beginners. Sometimes things just aren't as hard as you may think.

The sooner you learn and get on board with tax issues in your selling, the better off you will sleep at night. Face it, they gonna get you eventually. No hiding from the taxman.  Better to get in front of it, than put it off. Good luck to all.

[theteamsetguy]

Not interested in living in any SOCIALIST country.