04-18-2024 02:07 PM
HI,
Just curious as to if the government is going tax all sales over $600 or will it be safe this year?
Thanks
dacoop1
04-18-2024 02:10 PM
The government is taxing all sales over AND under $600.
04-18-2024 02:10 PM
*Sigh*
Nothing in the laws have changed.
EVERY seller is expected to claim their sales, whether there's a 1099K form or not.
The only thing that changed (so far) for the 2023 year is that the 1099K FORM wasn't sent for sales of $600. Again, that doesn't mean you aren't expected to claim the income and if appropriate, deduct your costs to get to the amount of profit that is taxable.
04-18-2024 02:18 PM
You reporting your income hasn't changed, you're supposed to be reporting all your income, doesn't matter the amount.
04-18-2024 02:23 PM
Don't forget to sacrifice thousands of dollars of revenue plus tax breaks so you stay under $600.
04-18-2024 02:26 PM
The government does not tax your "sales"---it taxes your net profits (sales-expenses).
04-18-2024 02:27 PM
@dacoop1 wrote:HI,
Just curious as to if the government is going tax all sales over $600 or will it be safe this year?
Thanks
dacoop1
What exactly do you mean by "safe this year"? Safe from what?
Whatever earnings you made selling on eBay you are required by federal laws to declare them on your income tax.
04-18-2024 02:51 PM
Looks like the IRS may be getting another call.
04-18-2024 03:11 PM
As others mentioned you are supposed to be reporting the income regardless. If you are asking will you be getting a 1099-K from eBay if you exceed $600 in funds processed through the third party financial processor there are multiple pieces to that.
1. Not sure what state you live in but a number of states already have 1099-K issuance requirements in place. I am in Virginia and the issuance threshold has been $600 since 2020. Nobody knows if any other states will pass their own laws but it would not surprise me given the inability of the federal government to get anything finalized.
2. As far as what the federal government does with regards to the 1099-K issuance threshold NOBODY can give you a definite answer at this point in time and in fact may not be able to until November/December.
Realize that this is NOT specific to eBay but covers any third part financial processor that you receive funds from. So it is possible you could get a 1099-K from not only eBay but PayPal, Venmo, Stripe, Google Pay............
04-18-2024 04:57 PM
All this fuss and bother over taxes. Do you drill the store cashier about taxes? This is America and just assume everything is taxed. Report ebay earnings and expenses like the law requires and stop fretting.
04-22-2024 12:51 PM
I do believe if you dont own a business and use Ebay as a way to sell your items you are not required by law for the sale. I dont have a tax id, it use to be sale of up to 200 items or 20,000 required reporting until the new tax law went into effect. But that got put on hold. How many times is an item allowed to be taxed? Then you got if you can prove you sold it for a loss theres no tax to report. Too much red tape.
04-22-2024 12:56 PM
By “safe this year” I am referring to Ebays old limits before a tax consequence ( 200 items or $20,000.
04-22-2024 12:59 PM
How many times is an item allowed to be taxed?
Regarding sales tax, I suppose it's subject to be taxed every time it's sold. For income tax (to you), report it just the once.
04-22-2024 01:08 PM
There have ALWAYS been tax consequences for ANY amount of sales. Doesn't matter if it was $100 or $1,000,000. You thought anything under $20,000 was "tax free"? You better hope you don't get audited for all those years you were evading taxes.
04-22-2024 01:08 PM