mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@cwilk wrote:The number of sales I have is the total since 1999. 25 years. 100 sales per year. 2 sales per week. I understand the IRS wants a piece of every penny that goes into, or comes out of my pocket. What I could do with all the profit I ever made on eBay. Feed a puppy. Or a kitten. I am at the end of my life now. I am disposing of the accumulations of a lifetime to make sure that burden is not left to my family. That does not make me a small business. Except in the eyes of the IRS. As for forced reporting. The 600 dollar a year amount is ridiculous. 13 dollars in sales week is not a business. I don't know where they came up with this number. I will comply. I will pay taxes on every penny I earn. And I will probably pay more because writing off expenses against my sales will probably be something a little too complicated for me. And I'm not going to hire a CPA because I sold $4600 worth of collectibles on Ebay.
I just went by the information that Ebay allows to be public.
There isn't anything for you to worry about. If you aren't making much of a profit, it is unlikely there will be any additional taxes for you, but that doesn't mean you aren't required to report your sales as income. Once you subtract your expenses, then you will arrive at your Net Taxable amount and if that is zero or near zero, it won't have an impact to what you might owe. But you still are required to report the income.
The current activity on your account shows you have had about 38 sales in September. Congratulations, that is terrific.
This has nothing to do with "IRS wants a piece of every penny". For many sellers like yourself it has absolutely no impact on what you owe in taxes, but that is not the determining factor if the income is suppose to be reported. That is simple. ALL income is suppose to be reported.
I'm unsure why anyone fights the designation of being called a "business". It isn't a bad word and it is much better than being designated and "hobby seller" as you can't take deductions.
Again, it isn't likely you with OWE taxes, you are missing the point entirely. Chances are extremely high, even if you did make a profit that you wouldn't owe more taxes.
The $600 minimum threshold for the 1099K report should not cause anyone any stress. It is simply a form and nothing more than a form. It does NOT determine when or if you need to claim your income, it is merely a form. With or without the form, we are all suppose to claim all our income. So don't blame the form and don't fear the form.
Some fall under the income levels to file a tax return. So if that is the case you likely don't have to worry about all this.
You can likely work this out yourself. Just keep good records and you will likely be just fine. Here are some further information that can help you too.
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
@gamersbaystore wrote:The reporting threshold for this year is $5,000, next year its supposed to be back to $600 again. You can thank the democrats for this monstrosity of a $600 threshold. The dems are just attacking poor people selling old items around their homes, its pathetic.
Ukraine gets $60 billion, the poorest of Americans get threatened by the IRS because they sold old baby clothes, that they dont owe any taxes on to begin with.
No it isn't. That is what IRS wants it to be. It is NOT yet approved. IRS says that is what they PLAN to have the threshold to be, NOT that it is approved. We are still waiting to hear if they get it approved.
OMG I don't know why this is such a hard concept. The only people that get taxed on the amount that a 1099K states are those that don't understand how to report their income and take their expenses as deductions. The vast majority of people that only earn a small amount on Ebay likely don't pay any additional taxes.
@gamersbaystore wrote:You need to to let got of the idea that someone who did $600 in sales somehow owes taxes. The majority of people who sell on this platform are selling old items from around their homes, and they're typically selling at a loss. They don;t owe any taxes to begin with, and theres no logic in forcing them to have to fill out a bunch of additional tax forms for nothing.
This $600 threshold crap is nothing short of demonic.
Wow that is such an overstatement.
Remember the IRS requires ALL income to be reported. The FORM has nothing to do with that. Even when the Form's threshold is $600, if you earned $400 you still need to report the income.
@cwilk wrote:Thanks for the kind words. I got a ways to go to the end, thankfully. It's a real drag losing the ability to drive at 56. I had a stroke while I had covid and lost a lot of my vision. I am very excited to be doing something fun, and useful on Ebay again. It has been years recovering to get to this point and it gets a little better every day. I'm sure Im worrying over nothing with this 1099K topic, but in my old life the reporting limit was 20 grand, and when I woke up from my long slumber it had been reduced to 600 bucks. If the government needs 20% of my coin, stamp, and baseball card collections that desperately, they can have it. By the way. Final value fees are way up too. As is postage.
I am very sorry you have had to go through so much with your health. Healing and recovering from significant health events can be more than just challenging. I am glad you are on the mend and hope you continue down that path.
I just want to add that it does still appear that you don't understand that the 1099K is just a form and nothing more than a form. It does not now nor has it ever set the minimum threshold for reporting income. When the threshold was $20,000 and 200 transactions, that did NOT meant that those that made $19,999 and less did not have to report their income. They most certainly did, they just didn't get this form.
With or without the form. Whatever amount we make on the internet, whether here or elsewhere. Is reportable income. There is not ANY form that the IRS has that sets any kind of minimum threshold for reporting income.
What Ebay FVFs have you seen go up? To my knowledge there haven't been any raises in quite a while. Postage, well that is always going up. It goes up again in just a few days.
@cwilk wrote:I just read. The House Ways and Means committee moved a bill through committee last month, September 2024, that would return to the 20K threshold, limit, level, whatever word satisfies you, for issuing a 1099K. If it will pass in the full House, or the Senate, or if the President will sign it is anybodies guess.
It wouldn't change anything for you. You still need to report your income to the IRS. We all do. All that means is the you likely [and many others] wouldn't get this form. However you still have to report your income. So it doesn't change anything really.
@cwilk wrote:President Biden probably wouldn't sign it. The $600 threshold is his policy. The article is easy to find. I believe the bill advanced 21-16, which means it was probably along party lines.
Tell me why it matters? If you are required to report your income, with or without this form. Why does it matter what the threshold for the form is?
