1099k

[moneymaker3919]

I received notice today due selling 600.00 worth of goods, I would need to provide a full SS number. The federal government said they would not attack low income earnings for taxes. Paying taxes for sales over 600.00 doesn’t seem worth all the responsibilities that go along with selling my items. Besides, their idea and my idea of low earnings are way apart. What does everyone think about this. Keeping records of all my cost is not worth selling as a hobby on eBay.  We should have never taken those small stimulus checks… now it’s thier turn to get it back.

[chapeau-noir]

Start here for the hundreds of threads about this. 

[jda04121]

"The federal government said they would not attack low income earnings for taxes." Not sure where you got that but it is totally false. Once the government has a 1099k it is really easy for their system to check your return to make sure you used it. They can and probably will send you a nasty letter to amend your return or simply add the number to your income and send you an amount due. And this has nothing to do with the stimulus checks.

[moneymaker3919]

Sure it involves the stimulus. They created a new tax to offset funds sent out. Just my thoughts not sure I’m correct.

[dnasilver]

Who told you that you pay taxes for sales over 600 dollars? You pay taxes on income and always had to.  You can sell a billion and have cost of a trillion and no taxes. You can sell a billion and have cost of a million and pay taxes. 

[jameshen1]

Oh, Good Lord.  Not again.

[kensgiftshop]

@moneymaker3919 

It doesn't matter if you get a 1099K or not, you're supposed to be reporting your earnings anyway.

I always report my earnings, so it's no big deal.

Myself, I think all the income should be reported to the IRS and do away with all the tax cheats.

[luckythewinner]

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@moneymaker3919 wrote:

I received notice today due selling 600.00 worth of goods, I would need to provide a full SS number. The federal government said they would not attack low income earnings for taxes. Paying taxes for sales over 600.00 doesn’t seem worth all the responsibilities that go along with selling my items. Besides, their idea and my idea of low earnings are way apart. What does everyone think about this. Keeping records of all my cost is not worth selling as a hobby on eBay.  We should have never taken those small stimulus checks… now it’s thier turn to get it back.

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It does not matter what I think of it, or whether I think it is worth it, or what my idea of low earnings is,  or what I remember that the "federal government said".

You decide what is best for you.

[caldreamer]

1099 is sent to you and IRS.   You must report "gross sales amount" shown on 1099.   But the good news is you can claim all your business expenses (EBAY fees, cost of goods, mileage, packing materials, etc.)  so your tax liability will be very low.

[soh.maryl]

Can you cite where the Federal government made that statement? 

[lawnmowerpartsstore2]

You were also told you could keep your doctor and your health insurance would not go up. Hows that working out ?

[buyselljack2016]

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@moneymaker3919 wrote:

Sure it involves the stimulus. They created a new tax to offset funds sent out. Just my thoughts not sure I’m correct.

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No "new tax" was created.  As has been posted in 100's of other threads about this, the only thing that has changed is when a 109K will be sent. 

[aprilmoviebuf2000]

Seeing as your id is "moneymaker", were you not "taxpayer" for all those prior years of sales?  

[dbfolks166mt]

     It doesn't matter if it's over or under $600 you should still have been reporting the revenue. The 1099 is just a document that third party financial processors are required to send to the IRS. It also applies to funds you may have received directly through PayPal, Venmo, Stripe or any of the other multiple third party financial processors out there. This is probably going to be another shock to a lot of sellers who may be selling things on other forums like CL and getting paid through PayPal, Venmo............. 

[authentirama]

it could potentially be a pain in the butt but just get into the habit of keeping a 'record' of some kind about cost of goods / inventory 

it wouldn't necessarily bump you into a higher bracket, it would depend on how much you earn elsewhere besides eBay

if you're going to continue selling just remember to take every deduction you're entitled to ... postage, shipping materials, and the portion of your home you use as your 'office'

then simply make sure your deductions and 'costs' are always equal to or more than your putative 'income' or as close to equal as possible