mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@stainlessenginecovers wrote:
- $5000 is ONLY being 'thought about' by the IRS
- Know that you need to report your income over $600 REGARDLESS if you get a 1099 or not; if the 'threshold' is $20k/200 transactions and you do $15k and NOT report it with your Federal Taxes, you are committing Tax Evasion.
- Per Google: (see the blue underline Alabama Dept etc.)
- IRS requires 1099-MISC to be filed by February 28 (paper) or March 31 (electronic). Give vendors their copies by January 31. To read more about how to file in Patriot Software, please read, Electronically Filing Your 1099s
- Alabama requires 1099-MISC filing if Alabama income tax withheld
- Participates in the Combined Federal/State Filing Program? Yes
- Filing deadline: January 31
- For more information: Alabama Department of Revenue
I think you meant 1099K.
I believe that number is $400. And notice, the IRS rules say NET income, not Gross [before deductions].
Who Must Pay Self-Employment Tax?
You must pay self-employment tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.
- Your net earnings from self-employment (excluding church employee income) were $400 or more.
- You had church employee income of $108.28 or more.
Generally, your net earnings from self-employment are subject to self-employment tax. If you are self-employed as a sole proprietor or independent contractor, you generally use Schedule C to figure net earnings from self-employment.
If you have earnings subject to self-employment tax, use Schedule SE to figure your net earnings from self-employment. Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax.
Note: The self-employment tax rules apply no matter how old you are and even if you are already receiving Social Security or Medicare.
Who must file
Most U.S. citizens or permanent residents who work in the U.S. have to file a tax return.
Generally, you need to file if:
- Your gross income is over the filing requirement
- You have over $400 in net earnings from self-employment (side jobs or other independent work)
- You had other situations that require you to file
See if you need to file: answer questions to find out
https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return
@stainlessenginecovers wrote:
@monroe67 wrote:"Know that you need to report your income over $600 REGARDLESS if you get a 1099 or not; if the 'threshold' is $20k/200 transactions and you do $15k and NOT report it with your Federal Taxes, you are committing Tax Evasion."
I thought we -- meaning people who file a U.S. tax return on Form 1040 or appropriate version of it --
WE are all expected by the IRS to report any and all income on our 1040 forms.
Therefore, I think saying "you need to report your income over $600.00" is mistaken, and possibly not good advice.
When an eBay seller earns any amount of money from their eBay sales, they are expected to fill it in on one of those many lines on the first page of the 1040 where we're all supposed to list all our income. That's why there are so many lines in the "Income" section of the 1040. The IRS wants to know all of it.
Income = Money Coming In.You may be correct; used to be that you did NOT have to file if you had NO INCOME over $600..a the $600 is the 'new' threshold that the IRS is bouncing around with, yet SOME states are using that figure, $1000 or $1500 etc.
But yes, I will CORRECT myself- just report ANYTHING you get selling here.
That is only a rumor, never a fact. It is from the assumption that since businesses / employers that hired someone and paid them cash / check for work done didn't have to report the payment to the person on the 1099-Misc unless they paid them at least $600. Kind of like those that thing the threshold on a 1099K FORM sets the threshold for all income needing to be reported.
FORMS never set the standard. IRS does. No one form has ever set this minimum. It doesn't even make sense it would.
I know that you do not believe this, but for those that think the 1099K Form threshold sets the amount you have to report to IRS and if you don't qualify for a 1099K, you don't have to claim that income. So for example this year is $20,000 and 200 transactions, some think if they have $19,999, then they don't have to report that income.
So think about this. What about people that their income is reported on a W2 from their employer. Do they get the first $19,999 free of taxes? Of course not. So then why should someone that gets a 1099K?
@sylvercoins wrote:I've made $19,000 each past 8 years and never paid a dime in Tax. I'm as big a tax scofflaw as the Bidens I guess!
Was that because after deductions you didn't owe any taxes or was it because you never reported the income? There is a difference.
You got the wrong president. It was Trump that proudly said he doesn't pay taxes.
@sylvercoins wrote:I've made $19,000 each past 8 years and never paid a dime in Tax. I'm as big a tax scofflaw as the Bidens I guess!
You're worshiping the wrong guy - it's Trump who's too "smart" to pay taxes.
Agree there is a HUGE difference between tax cheating and tax avoidance. There are a LOT of rich people and billion dollar corporations that pay little to no federal income taxes while continuing to grow the value of the corporation to their shareholders. For example in 2021.
Politicians who harp about raising the taxes on the rich are blowing smoke. It's not how high you raise the tax rate it is how much people actually pay.
