eBay

coastaltechsolution · ‎03-11-2021

Looks like the law will change on the Federal level that next year (Jan 2022) $600 is the 1099 limit

No biggie to me as I report all income but get ready for the influx of postings coming

congress.gov/bill/117th-congress/house-bill/1319

kc11671 · ‎03-11-2021

Some small sellers will probably just stop selling on ebay. The effort at tax time may not be worth the trouble.

coastaltechsolution · ‎03-11-2021

But keep those receipts for expenses, gas, shipping supplies, eBay expenses, etc.

Deductions are they key to offset especially for the part-time (smaller) reseller's

farmalljr · ‎03-11-2021

Most small sellers that have been NOT reporting the money they make here, likely have no clue what a schedule C is, or what they need to do, to file taxes properly, let alone know what they can deduct.

Either lots of CPA's will be over run with new clients, or many people will screw up their taxes, OR some may just "ignore" the 1099 and not report it anyway. Either way, I'm sure lots of people are going to be dealing with headaches next tax season.

Those that continue to try and avoid paying taxes on the INCOME they make here, eventually are going to get burned. Those that haven't been treating this like a business, better get up to speed FAST, because before you know it, it will be the next tax season.

While I do not like paying taxes anymore than anyone else, I find great humor in what this is going to do to the people that have been committing the crime of tax evasion for all this time. They can either leave, or act like they are supposed to. Otherwise jailtime and fines might be in their future.

Hmmm.. I wonder if all the people that sold "as a hobby", still think this is a hobby? Uncle Sam doesn't think it's a hobby. LMAO.

yawe_1956 · ‎03-11-2021

It's about time, I have long suspected a major portion of sellers flat out evading the entire tax process... Some may say that it's not a lot of money but even a few to several thousand, multiplied by 100's of millions of people who casually "forget" to report this income because it's just convenient...
We all like to blame the rich for tax evasion, but believe me on this scale it's worse.

ky-thrill · ‎03-11-2021

This basically constitutes a tax hike on the middle class. Thanks Democrats!

Now the person who spring cleans and basically has an online yard sale a couple of times a year will now have the choice of jumping through a bunch of hoops and creating documentation to not pay taxes on it, or just lose 25-35% of what they sold to the government. Or if they don't understand the paperwork, they get to pay a CPA $50-$100 to try and save $150.

Business sellers who already sold alot and were doing this anyway won't be effected.

It's a slap in the face to the average citizen trying to scrape together a few extra dollars.

ky-thrill · ‎03-11-2021

But it goes beyond that.

For years, the IRS said if you sold a treadmill for $100 that you paid $500 to basically not bother reporting that $100. Or if you wanted to be above board, you can self-report (without a receipt) that the item cost $500 and you sold it for $100, and your tax burden is $0 (but as an individual, you can't treat the additional $400 as a loss).

But most online "yard sellers", "hobbyists", or whatever, aren't going to understand how to do this. And now because there is a 1099 involved, they can't just not report it, as previously guided.

It's just going to get a bunch of unsuspecting people in hot water with the IRS.

This is really just a tax hike being placed on private online sellers by Democrats, who said they weren't going to raise taxes on the middle class. Oops, looks like they lied! Anyone shocked?

kc11671 · ‎03-11-2021

Turbotax business edition will be a hot seller when completing 2022 taxes since the standard program does not address schedule C. Sellers who have not been obeying the tax laws have some time to get ready. The new policy will apply to sales starting in 2022.

farmalljr · ‎03-11-2021

Let me correct a few things.

1 This is NOT a tax "hike" on the middle class. It's closing a loophole TAX EVADERS have been using as an excuse NOT to report taxable income. These people have been illegally avoiding the tax they owe for years. Probably the same people that complain about the "rich" that use legal loopholes to reduce tax liabilities. The amount of tax money this potentially will generate will be a good chunk. Instead of screaming for the "rich" to pay "their fair share", it's about time the playing field gets a little more level.

2 If you have more than 599 dollars of junk to clean out of your closet, you should be rethinking your wasteful spending. I'm willing to bet, there is hardly a yard sale ever, that nets $500 in proceeds. A real "closet cleaner" would probably not have more than a couple hundred dollars of "junk" to get rid of.

3 If it's a slap in the face, I hope it leaves a big ol' red mark. If you got a part time job to make some extra money, would everyone start throwing a fit when you had to claim that income on your taxes? Why in the world should the "extra" money made here be any different? It's INCOME. It's required to be reported.

If people don't like it, there are always part time jobs hiring.

m60driver · ‎03-11-2021

@ky-thrill wrote:
This basically constitutes a tax hike on the middle class. Thanks Democrats!

Now the person who spring cleans and basically has an online yard sale a couple of times a year will Or if they don't understand the paperwork, they get to pay a CPA $50-$100 to try and save $150.

Good luck finding a CPA to do your taxes for $100. Just purchasing the self-employed version of TurboTax that lets you file a Schedule C is an extra $100 over the regular version.

But yes, say a person sells $1,000 on Ebay. I estimate typical net profits for a small seller after all expenses to be about 30-40%. So you declare say $400 in income and then you pay an additional $100 just to file using the TurboTax that includes a Schedule C. But now your net taxable income is down to $300. (If you have to now use a CPA you are selling at a net loss.) The government then takes 15-25% of that, about $45-75. It will not be worth my time and effort to keep all the necessary records and I will stop selling in December of 2021 and look for alternative sources of income to make lunch money. Now if they just let me declare my net profits as miscellaneous income, they will have to trust me in any event as I purchase most of my inventory at garage sales where there are no receipts, I would be happy to make an honest estimate of additional income on my 1040.

ky-thrill · ‎03-11-2021

When you are born, they might as well start giving you a social security number, setup an LLC, get a TIN, and tax exempt status.

luckythewinner · ‎03-11-2021

@kc11671 wrote:
Turbotax business edition will be a hot seller when completing 2022 taxes since the standard program does not address schedule C.

I did my taxes on Credit Karma this year. Entirely free, including the schedule C.

luckythewinner · ‎03-11-2021

@m60driver wrote:
Just purchasing the self-employed version of TurboTax that lets you file a Schedule C is an extra $100 over the regular version.

Credit Karma does self-employment and a schedule C for free.

badgerboy2022 · ‎03-11-2021

Remember when they told you you could keep your doctor and insurance would be $2600 a year cheaper and it would be so much better? Ever see on Maury where the fat guy stands up out in the audience and says "That was a lie"?

You haven't seen anything yet. They are massively devaluing your $ thru inflation right now. And to those that say there's little inflation, they don't go grocery shopping. I pay to the King what the King is owed. 88 billion in new revenue over 10 years is a **bleep** in the bucket to the drunken sailor. They have been printing $$ with nothing to back it up.

It won't really matter when your job is replaced by AI and robots. How are YOU going to eat? The 2 parties are robbing you and you continue to believe your pants aren't wet from you wetting them.

badgerboy2022 · ‎03-11-2021

They already sold your SSN when you were born. To claim a kid as a dependent you need a SSN. These can be bought I was told when you cross the border.