1099-K

[ridgep]

I'm just learning about the new 1099-K  form of course after just setting up bank account. I was excited about getting started selling small items but if the threshold is not raised significantly, I will pretty much remain a buyer if all the good deals don't in fact dry up also. Big dissappointment to be taxed again on something I already owned. Time to look for other income sources.

[duffy4444]

    It is not the items that are being taxed again... it is the sales transaction  that is being taxed, less generous Schedule C expenses when you file your income taxes. This is not eBay's fault - it was imposed by the Federal Government.

Cheers, Duffy

[buyselljack2016]

Nothing has changed except the level at which the 1099-K is sent.

There is no change in reporting income profit/loss to the IRS.

[maxine*j]

Whether or not you owe any income tax on your sales and, if so, how much, will depend entirely upon your own tax situation at filing time, assuming you must file at all.   The 1099K reporting requirement at the $600 threshold is new, but nothing has changed otherwise for you.

Since no two people are in the same tax situation, no one here can advise you except in the most general and broad terms.  Only a tax professional, looking at your specific situation, can tell you how to handle sales reported on a 1099K that eBay is required by federal law to issue.

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[this*old*attic]

You are mistaken - you were always required to report earnings and do the bookkeeping for allowable deductions. The only difference is that now no one can do this under the table and fail to report.

[hachumi]

The only answer you will hear from this board on the 1099 is you were supposed to be paying your tax anyway and the only people that are effected by this are the deadbeats who haven't been paying all along.  The internet is wonderful in the fact that everybody becomes law-abiding citizens when it comes to calling somebody out.  The system we live in now,  is where everything that comes to you as a gain, then you are ment to give the government some, and if it wasn't a gain it's up to you to prove it.  But this is only for people that can not afford to pay somebody to find them the loopholes.  Even sadder how people cheer this on, because it gives them the smug feeling of being a righteous keyboard warrior.

[this*old*attic]

That’s an interesting approach to scoffing at the law - we’re all just smug keyboard warriors. Yeah, OK. 

[hachumi]

Struck a nerve,   If the shoe fits...

[albertabrightalberta]

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@hachumi wrote:

The only answer you will hear from this board on the 1099 is you were supposed to be paying your tax anyway and the only people that are effected by this are the deadbeats who haven't been paying all along.  The internet is wonderful in the fact that everybody becomes law-abiding citizens when it comes to calling somebody out.  The system we live in now,  is where everything that comes to you as a gain, then you are ment to give the government some, and if it wasn't a gain it's up to you to prove it.  But this is only for people that can not afford to pay somebody to find them the loopholes.  Even sadder how people cheer this on, because it gives them the smug feeling of being a righteous keyboard warrior.

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You're wrong. No one likes paying taxes but without being able to provide proof, I'd venture to say that most people fear an audit more than their unhappiness with potential income taxes and as such, we keep careful records of our expenses in order to legally take any deductions to which we're entitled. 

[johnrj1226]

There are still some eBay sellers (long time sellers) that a still discovering eBay charges a fee on shipping/handling that went into effect in 2011.  Would  speculate some of those same folks that never  read or complied  what the IRS  states what needs to be declaired as income/revenue.

[aprilmoviebuf2000]

"Time to look for other income sources"

And what, pray tell, do you plan on doing for income that does not involve reporting that income to the IRS?  

[this*old*attic]

No nerve, that was a character analysis.

Smartest thing I ever did was file my Ebay sales the 5 years I sold sort of full time lite - I’ll get $500 or so dollars more in social security when I retire thanks to keeping things on the up and up. Interestingly…. no one ever had to tell me I needed to keep books and file. Common sense, and all that.

[this*old*attic]

LOL, right?

[hachumi]

So you'ed turn in Grandma to the IRS for going to the thrift store a few times a month and making a little profit off of Ebay, so she doesn't have to eat just cat food right?   Or would you just do that on the forums because she's  scoffing at the law?    

[duffy4444]

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@hachumi wrote:

So you'ed turn in Grandma to the IRS for going to the thrift store a few times a month and making a little profit off of Ebay, so she doesn't have to eat just cat food right?   Or would you just do that on the forums because she's  scoffing at the law?    

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    I don't believe grandchildren would turn in Grandma just for making less than $600 a year. People aren't snitches with their own families. And they wouldn't have to do anything if Grandma made $600 or more - the 1099-K would automatically go into effect on its own. It's none of the grandkids business, and it has nothing to do with cat food... get a grip, as you're way over the top here and seem to only be arguing for the sake of arguing tangents that have nothing to do with the tenor of the OP's original post or the comments following.

Cheers, Duffy