SELLERS NEW 2022 LAW EVERYONE will most likely get a 1099

[spirit-n-history]

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales.  For the People who are saying it's no different you are INCORRECT, the law now will require people to 1.  track every sale  2.  determine if the sale was profitable,  3. or prove if they sold the item for less than it's purchase price, 4. or prove the item was an inheritance and the value at the time of death is the same or higher at the time of sale, 5.  track any expenses (fees, mileage to/from Post Office, receipts for Packing Supplies, internet expenses etc etc to offset the FEW items sold that might have been profitable, WHEREAS sellers didn't have to do this under $20k IF they knew that their sales were from items that were sold less than purchase price or an inheritance whose value hasn't increased since the time of death - this is a ludicrous waste of time for eBay sellers who aren't a business to have to track and report each item and expense at such a LOW threshold.  Mothers, housewives, senior citizens sell household items and things they inherited to make ends meet, they have a right to get a RETURN on these items without profiting more than the items worth and not be taxed and they still will under the new law EXCEPT NOW they have to be a junior ACCOUNTANT and create spreadsheets, calculations and reports, consult and pay an accountant for accuracy on reporting sales  to prove to the IRS that their household items and inherited items aren't selling for more than their original value and aren't taxable - MOST PEOPLE will NOT know how to itemize all the required information on a spreadsheet and won't take the time to do this so they will get charged the full 28% capital gains tax on the amount reported on their 2022 1099!!!  PEOPLE PLEASE WAKE UP and stop saying this law is NO DIFFERENT! It's just another way to stick it to low-income people or senior citizens trying to make ends meet by selling their used/unwanted items as the IRS will profit from the people who don't track all that is required!!!  BTW eBay is lobbying Congress to fight to get the limit raised to something acceptable, it used to be $20,000 and to go down to $600 to keep track of every item sold and FMV, expenses associated with each item (whether that item is profitable/taxable or NOT!) is a complete HARDSHIP on the people selling their used items.  I agree that $20,000 there were probably 'some' people not reporting 'some' items that were profitable but to drop that limit to $600 is LUDICROUS, maybe $12,000 or $10,000 makes more since but certainly NOT $600 as the housewives, mothers, fathers and the senior citizens selling their household and inherited items will LEAVE in DROVES after they get that first 1099 because NO ONE has the TIME to create a spreadsheet with calculations to report that their items made NO PROFIT and weren't taxable in the first place!!!!!  Mothers just need the extra money to feed their kids or buy them a new backpack or senior citizens to pay for food or prescriptions.  Here is ebay's link to HELP lower the threshold and I suggest ALL SELLERS get involved and Send an email to your Members of Congress! https://www.ebaymainstreet.com/campaign/2021-federal-1099-campaign 

[farmalljr]

No, the law ISN'T different. Everyone has been required for YEARS to report ALL income. Even "cleaning the closet" is INCOME that is supposed to be reported. 

What changed in 2018, is that hobby sellers no longer get deductions like they were once afforded. What changed in 2022, was only the reporting payment processors were now required to report sales of 600 or more in the form of a 1099.

There were MANY people not reporting. They can blame themselves if they do not like the new 1099 reporting requirements. If everyone was doing what they were supposed to, the law would not have been penned. It does not affect me, or those like me. We don't care how upset people are, because we see ZERO change. 

I am a business, I report ALL of my income. I don't care if they make $100 the limit to get a 1099. It makes zero difference to me. The only people that are mad, are the people that can't lie about their income anymore. 

If you are "low income" or by some other means, living on government support, you have long been required to ALSO report any income to them, in addition to the IRS. Not doing so was committing FRAUD. In addition to evading taxes, that may also be a felony. 

There is no paperwork for "hobby sellers" and "closet cleaners" to keep. Just transfer the money off the 1099, to your tax form. You don't get deductions. 

No pity, no sympathy here. Do what you are supposed to and there is no issue. 

[katzrul15]

We really need a MOD to PIN a thread on this.

Thread 674 on this.......

Carry on.

[kensgiftshop]

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@spirit-n-history wrote:

MOST PEOPLE will NOT know how to itemize all the required information on a spreadsheet and won't take the time to do this

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Maybe it's time they learn to do their taxes, like the rest of us?

[stuff4divas]

Talk about super LATE to the game 🙄

Just read your title bc paragraphs don't seem to be your friend

Anything you have to say about this subject has been discussed for months

[divwido]

IT IS NO DIFFERENT THAN IT HAS BEEN FOR YEARS.  FOR THOSE OF US WHO DO NOT CHEAT THE GOVERNMENT, THAT IS.

STOP THESE POSTS PLEASE!!!

[fern*wood]

It's not a new law. 

[a_c_green]

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@katzrul15 wrote:

We really need a MOD to PIN a thread on this.

Thread 674 on this.......

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On the plus side, it's not a topic that anyone from Sri Lanka will need to post about...

[7606dennis]

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@a_c_green wrote:

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@katzrul15 wrote:

We really need a MOD to PIN a thread on this.

Thread 674 on this.......

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On the plus side, it's not a topic that anyone from Sri Lanka will need to post about...

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But they probably will. 😉

[southern*sweet*tea]

There is no new law for citizens to report income. It's been the same for decades (the 1930s I believe) - ALL income, no matter the source or amount, has to be reported. You reduce that amount by taking any allowed deductions to get your taxable income.  Reported income does not equal taxable income.

The ONLY change is for those entities that issue 1099 forms.

Eighty years. It's been law for 80 years now, why are people so fired up now? Where were the protests and outrage last year, the year before, the decade before...

Oh wait...now the government will know about all that undeclared income.  Looks like the free ride is over.

[randyshotrods]

  Well it's hard to write off the purchase price of a new item you bought 40 years ago for $20 and no longer have a receipt for but you sell it for $10 so now you made a profit of $10 according to the govt.,  though you really lost $10 not included inflation figured in or storage fees for 40 years.  That's why alot of people are upset.  Many of these items from the small sellers selling even a grand or two is stuff they or family members have had for years and in many cases are actually losing money on,  but now all that money is considered income.  

Also tell me how many of you holier than thow do claim every single penny you have ever made on your taxes? 

Someone gave you $10 for doing them a favor, you claimed it?  Did a little job for some elderly neighbor and they gave you 10-$20 even though you argued you didn't want it.  They get downright upset if you won't. 

Ever had a garage sale and sold a little junk?  You claimed every dime of that?  

Someone gave you cans to take back to a recycle center because they didn't want to be bothered and you were headed that way any way?  You claimed that as well correct?

Yeah I run mine as a business and claim every dime of my ebay sales,  but I can see where this is ridiculous for someone that sells very little.  

 Tell the Gov't to run itself efficiently and promote small business.  The money they make off that will more than compensate them for trying to chase down every dime they missed along the way.  

[katzrul15]

@spirit-n-history 

Unfortunately this has been discussed, posted, threaded, ad-nauseam.

Instructions for Form 1099-K (Rev. January 2022) (irs.gov)

Reporting online income for an e-tailer (or any side hustle, etc) has always been clear.  A Seller potentially owed tax on gross income.  The reporting mechanism for a 1099-k has changed.  See attached link.  

[shoprosella]

Perfectly said.  However you forgot to add the small winning one might get from gambling...lol.  I too claim my income from my business so please people don't bash my post.  It all boils down to this...this adminstration thinks the government is losing out on 1 trillion dollars of unreported taxes....everyone is "cheating".  That is why this adminstration wants 87,000 more IRS agents, to go after those "cheater" and thus the lower threshold to get to that 1 trillion dollars in revenue anyway they can.

[spirit-n-history]

@farmalljr  SORRY you are INCORRECT, the ONLY items you pay taxes on are items that you make a profit above the original PURCHASE price, so if you bought a household item for $100 and sold it for $99 you did NOT make a profit and it is NOT taxable, also if you list/sold an item that was inherited the basis price is what it was WORTH (not originally bought for) at the time of death of the person you inherited it from, so say your aunt leave you an item that she bought for $10 but at the time of her death it was worth $100 and you sell it for $100 then it is NOT taxable.  

[ckimodog]

Not yet anyway...lol