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.

[theteamsetguy]

Hachumi,

Please tell me why it ok for some to follow the rules and others to not. I'm not saying you are not. A vast majority of people pay their taxes as they should but the ones that don't irritate the ones that do pay. If everyone paid their taxes like they are supposed to there wouldn't be new rules requiring eBay and other payment processors to lower the 1099 reporting requirements. Based on the many other comments on these boards there seems to be a big misunderstanding that if income is not reported to the IRS you don't have to claim it and pay taxes on it. 

We live in the best country on the planet and it should be ones patriotic duty to pay their fair share. We all need to pitch in to pay for the roads, bridges, schools, military, foreign aid, police, food stamps, disabled, parks, stadiums, immigrants, healthcare for the poor, student loan debt relief, just to name a few. 

As one that is blessed to be able to live in this great country I feel the least one could do is pay what they supposed to.

[monica-sells]

If grandma was my competitor and competing with me for the same piece of pie, you bet I would

If the B&M Store down the street was selling counterfeit products to my licensed ones, I would turn them in too....

....why should 'grandma' not have the same obligations as I have?

This is where your righteousness theory goes awry......

[hachumi]

Bravo, I salute you for being a great American! 
So would you turn in an old person for trying to get a little bit ahead by selling items on Ebay so they could get by?   Or would you just tell them that here?  Because that's what you might be doing.  You don't know who your talking to or giving advice to.
So If you are giving people advice here you wouldn't tell them to their face, then you're just smug keyboard warriors like I said above.
Thank you for your service...

[slippinjimmy]

---

@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?    

---

If Grandma is so poor that she is forced to eat cat food then grandma could probably report THOUSANDS of Dollars of eBay sales and not pay ONE SINGLE PENNY in (additional) income tax.

The more I read these inane comments the more I wonder how so many people have clearly never filed an income tax return or even read the tax guides provided by the IRS.

This article on Forbes explains the basic deduction, senior deduction and tax rates that apply to those who report more than the that as taxable income. It provides the amounts for 2022 and also the big increase in 2023 due to the high rate of inflation. Even if Grandma sold $10,000 worth of goods on eBay her tax burden would likely be less than $500.

https://www.forbes.com/sites/janetnovack/2022/10/18/irs-sets-higher-2023-tax-brackets-standard-deduc...

[monica-sells]

I can expound on that issue too.....(first hand experience, though your situation might be different)

You can probably have taxable income upwards of 12,000 (which would be about 16,000 in 1099-K income)  without incurring any tax burden (that's a lot of cat food). The EIC (if you qualify) would offset any 'self-employment' taxes that the profit would generate.

This is a general overview....we are all different.

[this*old*attic]

Strawman, Ad hominem, false dichotomy, red herring, bandwagon…so many fallacies to count… With a bit of hyperbole for good measure. LOL. You earn, you file. Welcome to life. The Big Brother reporting change wasn’t designed to catch Grandma; it’s meant to catch full blown businesses flying under the table who took advantage of a loophole for several decades. Anyone smart enough to figure out how to get a listing up on EBay can figure out how to learn and apply the math to allowable deductions. I keep a few things up, thinking I’ll get to the unlisted leftover vintage stash some day - maybe in retirement - and I won’t pay a single red cent of income tax on my little eligible sales this year.

[12345jamesstamps]

 You just save all receipts and file at end of year deductions for selling. I just got a new PC so that will be a great deduction for me. I can also deduct wifi. I use my iPhone for business so I will deduct that also. Deductions is the key to be able to sell. I use H & R Block to file my taxes all the time. 

[hachumi]

Then why is the Treshold for 1099, 600.00?
Why is grandma forced to be a CPA now, let alone try to live, she's old the brain and body don't work like they used to from working all her life?  
What you say works in a perfect world, get off your computer and go outside, it's not so perfect anymore.

[this*old*attic]

Absolutely beyond well said!

[pickermall]

What does grandma have to do with all this? Living on cat food, even? 😆

MY grandma always paid her taxes. She raised me and my two younger sisters back in the 1970's and we never ate cat food. Canned roast beef hash sometimes... never cat food!

[bonjourami]

'Why is grandma forced to be a CPA now, let alone try to live, she's old the brain and body don't work like they used to from working all her life? "

Are you now saying that grandma is not capable of doing her own taxes? I am, and millions of other grandmas just like me,deductions and all. The brain and body are still working pretty darn good,but thanks for your concern.

[monica-sells]

To the OP.....don't let the threshold or fear of making extra money and a small bit of paperwork deter you from listing.....the requirements should not discourage you, but motivate you.....

I have always said (since I have been self-employed my whole working life) that, as convoluted as it sounds.....

"I love paying my taxes...that means I am making money...."

[this*old*attic]

More hyperbole… poor pathetic helpless going senile Grandma, LOL. But she can figure out how to list and ship? Again - yeah, okay. Not sure why you think $600 is some forgive-able magic number - if someone earned that working Saturdays at the local YMCA for minimum wage, they’d get 1099’d. The only reason this didn’t kick in on e-commerce sites is because the internet was new. It was never meant to be an earning freebie.

[gloryglorygifts]

I thought this might help you. Of course, it all comes down to your recordkeeping and your best bet is to have an accountant do your returns. https://ttlc.intuit.com/turbotax-support/en-us/help-article/sales-logistics/report-personal-items-so.... Good luck to you!

[maxine*j]

---

@this*old*attic wrote:

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.

---

YES!   All the folks who think they're such cleverboots for hiding their business income in order to avoid the FICA bite will be here moaning and groaning about their miserable SS benefits in a few more years, if they aren't here already doing so. 

My late  husband had one oh-so-clever friend who worked for cash under the table all his life -- and was absolutely astounded to find that when he hit 65 he not only had no Social Security benefit, he did not qualify for Medicare.

-

-