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.

[stephenmorgan]

Here is a nice video that explains how to report 1099k sales of non-business personal use items.  There is a lot of historical information explained to start with, but if you jump to about minute 8:10 thru 10:00 it is shown in understandable terms how to fill out the IRS Form 8949 and account for loss or gain on your items.  

How to Report Form 1099-K on Form 1040 for Personal Use Sales

[mam98031]

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@cwilk wrote:

Thanks for the encouragement.  This thread has gotten completely out of control and I can't really follow it anymore.  It's what having had a brain injury leaves you with.  There was a time, a long time ago, that I was a part time tax preparer.  I vaguely remember filling out schedule Cs for some small business clients.  I also know how much tax law changed from year to year back then.  And I haven't prepared anything other than a short form return in  at least 10 years.  I can only imagine what has changed in all those years.   I also feel like I have to really watch what I say in here, because of some of the highly  unusual responses I've received.  I'd like to delete this thread and be done with it.  I have gotten the chance to read up on how the new 1099k threshold law squeaked through congress, though.  I did not realize that it required VP Harris to break a  tie in the Senate.  It was part of President Bidens recovery plan legislation.

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Something that may help you is a tax program.  I use one every year to do my taxes.  They are really easy to use.  Mostly just answer the questions and the program fills out the correct forms for you.  We've used Turbo Tax the most, I think.  But there are others and they aren't that expensive either.  Just a little thought to consider.

Yes, you are correct, it was part of a bill that got the stimulus checks most if not all of us received approved back then.  Not every part of a bill is necessarily what the current administration always wants.  Many times things get added in order to get the main bill passed.  Not sure if that happened here, but it is what normally happens when ANY bill gets passed on all kinds of subjects.  Bills are rarely specifically about what the subject of the bill started as.

But again.  It is merely a form.  The threshold on a form, ANY form does nothing to set the requirement by IRS on when you are suppose to report your income.

[mam98031]

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@cwilk wrote:

So would you report  the $90 on your 1040?

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While I have reported all the income I've earned on the internet since the day I started my little business some 25 years ago.  Long before the 1099K form even existed.  

I don't think I  would have claimed that $90 win gambling on my taxes.  

I do believe in reporting my income and paying my fair share of taxes, but I'm just not one that is going to go that far.  If my neighbor gives me a few bucks to take care of her pets while they are gone for a few days, not that I would ask for any money, but lets just say they did pay me for it.  It would also not be something I claim on my taxes.

I'm just being honest here.  I get it that some might do that, I'm just saying I wouldn't.  But if I'm getting paid for something regarding my work expertise or regarding things I sell on the internet, I claim all that income.

[gamersbaystore]

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.

[kensgiftshop]

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@cwilk wrote:

So would you report  the $90 on your 1040?

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Yes.

When I picked up pop cans, I reported that income.

[oldwestgold]

I'm not sure why some small sellers still find the 1099k an issue. It is extremely easy to file tax forms as a hobby or business. It's even easier to have your income and expenses automatically calculated for you as you sell via one of at least 2 free online accounting software packages. Even a duck could understand how these function and how to maintain them. (No offense to ducks.) Then at the end of the year, they automatically spit out your Form C and all the tax documents you are required to file completed and filled out! Don't be afraid of filing this form or being able to rest easy knowing you have a minimal risk of an audit. If you need the names of these two online and FREE software packages, just PM me. Quit being afraid of the 1099K! It won't bite if you understand the basics.

[kensgiftshop]

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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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No it's not.

It says they plan on it.

[kensgiftshop]

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@oldwestgold wrote:

I'm not sure why some small sellers still find the 1099k an issue. It is extremely easy to file tax forms as a hobby or business. It's even easier to have your income and expenses automatically calculated for you as you sell via one of at least 2 free online accounting software packages. Even a duck could understand how these function and how to maintain them. (No offense to ducks.) Then at the end of the year, they automatically spit out your Form C and all the tax documents you are required to file completed and filled out! Don't be afraid of filing this form or being able to rest easy knowing you have a minimal risk of an audit. If you need the names of these two online and FREE software packages, just PM me. Quit being afraid of the 1099K! It won't bite if you understand the basics.

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Filing taxes now is a piece of cake.

I remember having to go to the PO to pick up the forms and there was always one they didn't have.

[gamersbaystore]

The IRS made the announcement last November that 2024 would have a $5K threshold. Its literally stated directly on their website and was publicly reported by the media last November.

I am well aware of what the IRS requires, I just don't agree with it. They wouldnt have those requirements if the morally bankrupt democrat leaders you proudly endorse hadnt attacked America's poorest with ridiculous tax rules.

Americans are not even required to file taxes at all unless they made over $14,600 in 2024. But if they sell $600 on ebay now they suddenly have to file.

The fact you approve of inflicting pain and misery on America's most vulnerable says all I need to know. Its sickening.

[nobody*s_perfect]

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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...

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You are misreading the IRS memo.  It states that "This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024".  Note that they PLAN for a $5K threshold and that they are inviting comments about it.  When they decide to implement it, there will be another announcement.

[kensgiftshop]

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@gamersbaystore wrote:

Keep lying and deflecting if it makes you feel better.

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You show us where they said it's been changed?

That site says they are planning on making it $5000, not it has been changed to $5000.

[cwilk]

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

[nobody*s_perfect]

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@gamersbaystore wrote:

I can read just fine. You people on the left are nothing short of morally bankrupt and have nothing but contempt for the most vulnerable people in our society. You must be proud defending this disgusting assault on America's poor.

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Hmm, I thought I was defending reading comprehension.

[dbfolks166mt]

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.

     You need to read the information in the link more carefully. The IRS does not have the authority to change what is already currently law which is why they simply delayed the $600 limit for the last two years and I imagine there were some strings to pull to make that happen. Several bills have been put forward but none has passed and none are likely to this calendar year. 

This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions.

    For some of us sellers the 1099-K reporting issuance limit is already set by state laws. The official IRS 1099 policy still reads 

     "A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 from over 200 transactions. However, they can send you a Form 1099-K with lower amounts. Whether or not you receive a Form 1099-K, you must still report any income on your tax return."

[gamersbaystore]

Yep. Notice they all just keep lying and deflecting, even when the facts are right in front of their faces. Any statement that doesn't fit their political narrative is immediately met with ire. Notice how they all out attacked you right after you told them you're legally blind, elderly, and have cancer. They dont care, they are all about themselves. We are all just bystanders in these self-entitled, self-absorbed peoples world.