1099K Limit

[cwilk]

I know this subject had been done to death. But the 600 dollar  limit for 1099s  that will go into effect next year is getting close.  I am a hobbyist.  I don't make a profit on most of my transactions.  I also don't want my hobby to complicate my already complicated income taxes.  I also don't want to pay for tax preparation because I'll need to file schedules to write off expenses related to something I'm doing for fun. Finally,   has anybody thought that 600 dollars is less than 12 dollars a week in sales.  12 dollars a week in sales isn't a business.  It isnt even a lemonade stand!  I'm looking for informed opinion.  Is the 600 dollar limit going to be law in 2025 or will there be another delay, or a more reassonible limit put in place?  This has been going round and round since I began Ebaying in 1999.  This is the closest its come to actually being implemented.  Fwiw.  I'm almost at 5k in sales for this year.  I reckon I'll stop trading until next year soon.  Finally.  It's laughable that me opening a box of baseball cards, finding a card I already have, and selling it at a huge loss  triggers a report to the IRS.

[cwilk]

I'm 59 years old.  I've been in the Navy.  I bartended for 30 plus years.  I worked as a plumber.  In all those years I have never come across of group of people who loves and supports , almost worships, the IRS as much  as some of the posters ive encountered here on this board.  On the contrary.  In my experience. with a highly diverse  group of folks, the IRS is reviled by most, and the people I know, rich and poor, carefully plan their finances to minimize their exposure to the IRS.  And frankly, your tax responsibility ends at your front door.  What people who live beyond that do with their finances or taxes  is not your concern.  Unless you're an IRS  agent.  In which case my name in John Smith, and I live in Springfield.

[kensgiftshop]

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@cwilk wrote:

 In all those years I have never come across of group of people who loves and supports , almost worships, the IRS as much  as some of the posters ive encountered here on this board. 

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It's not that we love the IRS, some of think it's time other sellers pay their fair share of taxes.

You'd be surprised at how many sellers thought just because they didn't sell $20,000 worth of items, they didn't have to report that income.

Some might only sell a couple hundred or a thousand dollars a year and report their income.

Then you have the ones that sell 19,999 and stop to stay under $20,000 and don't report their income.

How is that fair to the ones that are doing what we are supposed to be doing?

[oldwestgold]

Commenting on how to file taxes in regards to eBay doesn't mean you love or hate the IRS. It all depends on the "sleep factor" in my opinion.  I choose to be able to sleep at ease at night knowing that I did the best I could to meet the tax requirement challenges I am dealt here. That doesn't equate to writing blank checks to the IRS. I wasn't a bartender or plumber such as yourself, where one may have "opportunities."  The key to almost everything in life is knowledge. I am 68 and know that all too well. The other thing I have learned along the way is, that most things aren't rocket science. If someone else can do it, I can too - with knowledge. And since I live in Ohio I will add, "Springfield" is much worse than most people can imagine. Knowledge = truth.

[oldwestgold]

B i n g o !

[mam98031]

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@gamersbaystore wrote:

No, the reporting threshold is $5,000 for 2024. The IRS publicly announced this the end of last year and its stated directly on their website:  https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party... 

Anyone who earned a lousy $600 for an entire year is obviously dirt poor. The dems are attacking America's poorest, its sickening and it needs to stop.

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Sometimes our choice of words is what really keeps others confused.  The 1099K has NOTHING to do with the "REPORTING THRESHOLD" for our sales.  The threshold on the 1099K is for when the FORM is required to be generated by the various Marketplaces or other entities legally required to issue the form.

Many of us have seen the link you have provided as well as others where the IRS says  "plans for a threshold of $5,000 for 2024"  As others have said.  This has not yet been approved or at least IRS has not announced that it has been approved.

"Anyone who earned a lousy $600 for an entire year is obviously dirt poor.   The dems are attacking America's poorest, its sickening and it needs to stop. "  I would agree with you regarding that, but you are making an assumption that what is on the 1099K is everything a person has earned and just twisting the heck out of that to make it a another political statement that has NOTHING to do with the reality of why it exists. 

You've been on these threads long enough to know that this is not true.  Internet selling is often done to supplement other income.  

But lets say that somehow what you say is true.  Someone in that category would never owe a penny of income taxes on that amount.  

[mam98031]

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@cwilk wrote:

Gamer.  The IRS site does say they've increased the threshold, just as you said, not that teyre considering it.  This is one of the least helpful help boards I've ever encountered.  Full of sanctimonious pedants

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Then you need to read things again.  You have received a whole lot of great information here.  But if you have convinced yourself that we are all wrong, nothing will change for you.  You will remain having the incorrect information.  Words matter.  This has been explained a few times.  Read it more closely.  It says NOTHING about being approved.

[mam98031]

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@cwilk wrote:

This has been asked of me before.  Why do you care so much?  I prefer to ask this question instead,  Why does the IRS care so much about a little piece of paper?  Both questions are rhetorical.

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You are kidding right?!?!?  You've asked this and it has been answered MANY times on this thread.  Maybe if you step away for some time and let you head take a rest, as there has been lots of good info posted here for you, then come back and start reading from the beginning, you will see how this has been answered a few times on this every growing thread.

A great number of these posts are just different posters repeating stuff to you in the hopes that at some point it will be clear for you.  

[mam98031]

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@cwilk wrote:

And why is it part of a plan that is supposed to provide stimulus to the lowest income Americans?

It bothers me because I see further down the road than you do.  I do not want every aspect of my life tracked, and prodded by the government, especially the IRS.  When Grandma dies and we sell her Hummels on ebay for $650, that should not initiate any sort of communication to the IRS.  You needn't reply.  I know what you're going to say.

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You do realize your post was in response to your own post, right!?!?  

Selling off inheritance items have some specific IRS rules and ways they need to be reported.  So be VERY CAREFUL and learn about what you are doing BEFORE you do it so you can be prepared.

[mam98031]

@cwilk 

I'm 59 years old.  I've been in the Navy.  I bartended for 30 plus years.  I worked as a plumber. 

You've told us your age quite a few times, so that makes me think that you feel it is an important fact to the discussion we are having.  I have to ask, do you think you are the oldest in the room?  Or the most experienced?  You might notice, no one else is touting their resumes.  DON'T mistake that for them not having one, that would be a mistake.

In all those years I have never come across of group of people who loves and supports , almost worships, the IRS as much  as some of the posters ive encountered here on this board. 

WOW, now this is an eye opener.  You came here asking about the 1099K and because you don't like or agree with what that form means, the people that are spending their time to try and educate you are somehow worshipping the IRS.  Have you lost your senses?  

We tell those that ask for help on this subject what we know to be the rules and how they work in an effort to hopefully help that member stay OUT OF financial trouble for not doing what the LAWS require of them.

EGADS, what the heck!!??!??!  If you didn't want to know, why ask?  Then you get answers and your reaction is to insult those that are spending their personal time to HELP YOU!!!  That says far more about you than any other post on this thread.  

On the contrary.  In my experience. with a highly diverse  group of folks, the IRS is reviled by most, and the people I know, rich and poor, carefully plan their finances to minimize their exposure to the IRS.  And frankly, your tax responsibility ends at your front door.  What people who live beyond that do with their finances or taxes  is not your concern.  Unless you're an IRS  agent.  In which case my name in John Smith, and I live in Springfield.

Why you assume you know the outcome of the tax impact to other members that just earn a few hundred $$$s in sales here is remarkable.  The truth of the matter is that while EVERYONE [that does include you whether you like it or not] are required by LAW to report all their income.  But those that only have a few hundred to declare or even a couple thousand likely don't even see a noticeable change in the income taxes owed.

[fern*wood]

As often happens around here, posters with questions often reveal themselves.  Many of us read a question and sincerely try to answer or help them avoid problems.   Often we are attacked if we don't agree with what they want to hear.

[kobebray]

Seems Ebay is wanting to change this threshold also. Wonder why?

[stephenmorgan]

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@kobebray wrote:

Seems Ebay is wanting to change this threshold also. Wonder why?

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EBay is worried about losing income from sellers who quit selling.

[mam98031]

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@kobebray wrote:

Seems Ebay is wanting to change this threshold also. Wonder why?

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Ebay's view of this is purely because as is clear, from this thread and many others, far too many people do not understand what the 1099K is for and what it means.  Too many people make assumptions or get bad information that they just can't seem to let go of.  From that they make bad decisions, like to stop selling online.  They think that is the answer, it isn't and is more likely just hurting themselves.

Or sellers that decide to stop selling when they get close to hitting the minimum threshold for the form.

So from Ebay's point of view, they don't want to lose the sellers that misunderstand how this actually impacts them.

[rudy2828]

The only benefit is that higher postage and fees reduce your taxable income... 🙂

[rudy2828]

Cleaning out my work desk, I just threw out a nice bundle of losers, mostly my own. Used to buy a $20-$30 scratch off every week, and kept an excel spreadsheet. I like numbers and looking for an edge. It's not about the money. After two years I lost around 1/3 of my spend. Roughly the same each year. NY State BTW.