12-01-2023 02:02 PM
Why has eBay not mentioned the fact that small sellers will not be impacted this year under 5000 dollars?
12-01-2023 09:44 PM
"I predict that by the end of 2024, most states will have a minimum reporting threshold of their own and there will be no need for a Federal threshold. Someone write this down. " Tend to agree that more states will jump on the bandwagon in 2024 and set their own thresholds.
Whether or not more states establish minimum income reporting thresholds, those state thresholds ONLY apply to STATE income tax -- and NOT Federal income tax. But it is a Federal form so when it is issued it is going to the IRS at the Federal level as well as probably to the IRS at the state level either through the Fed or directly. Not sure what state you are in but my Federal return feeds to my state return so I would need to report the income on my Federal return as well as all of the deductions to get it to flow to my state return.
Thus, it is VERY unlikely that "there will be no need for a Federal threshold." There already is one codified in law. Whether the Fed chooses to continue to screw around with or not in order to eliminate it they would need to pass a law rescinding the original law.
And that is already written down -- in Federal income tax statutes.
12-01-2023 10:37 PM
Regardless of the threshold, report your profits in your tax paperwork. You will sleep better. 🙂
12-01-2023 11:17 PM
This again.
12-02-2023 12:27 AM
You have a MAJOR misunderstand like so many others. The threshold on an IRS FORM, ANY FORM, does not set the minimum for reporting income to IRS. The 1099K is merely a FORM and nothing more.
When the minimum threshold on the FORM was 20K, that met that only those that made above that got the FORM. What it DID NOT mean was that anyone below that 20K did not have to report their income to the IRS. And that is likely what will get some people in trouble because they assumed something that was not ever based in FACT. IRS does NOT HAVE a minimum requirement on reporting your income. So even when the FORM threshold was 20K, those that made 15K, 10K, 5K, 1K, etc. were still responsible for reporting their income.
Everyone needs to remember that the 1099K is ONLY A FORM and nothing more. It does NOT set the minimum requirements to report income to the IRS. That would be like saying if you don't receive a 1099K for ANY type of income you receive, you don't have to report your income and that is ridiculous. The 1099K only covers internet related payments. It doesn't cover when people are paid by check or any other form. So to think that the 1099K has the power to set the minimum standard for all of IRS, all those people that are NOT paid via the internet would not have to claim their income, which we all should know is not true.
12-02-2023 08:12 PM
They probably will still send 1099K to IRS for anyone with gross sales of $600 or more even though the IRS delayed it again in 2023
12-02-2023 08:37 PM
"They probably will still send 1099K to IRS for anyone with gross sales of $600 or more even though the IRS delayed it again in 2023"
I think that statement will be proven to be, well, mistaken. Maybe you can come back to this forum next February and tell us if you received a 1099K from eBay.
12-02-2023 11:18 PM
@*jrcollect* wrote:They probably will still send 1099K to IRS for anyone with gross sales of $600 or more even though the IRS delayed it again in 2023
Why would they do that? They didn't last year and IRS didn't announce till late December that the weren't going to change the threshold for 2022.
02-05-2024 08:23 PM
It's not always about evading taxes -for example, there are some sellers who could be selling inherited or purchased items for less than they were valued at the time of inheritance or purchase and wouldn't owe any capital gains tax anyway, so it saves a lot of paperwork for small amounts.
02-05-2024 10:47 PM
@stewlel wrote:It's not always about evading taxes -for example, there are some sellers who could be selling inherited or purchased items for less than they were valued at the time of inheritance or purchase and wouldn't owe any capital gains tax anyway, so it saves a lot of paperwork for small amounts.
I'd be sure to clear that with a tax expert and not assume on your own that the IRS doesn't want it reported.
If you are buying things for resale, you absolutely need to claim your sales whether they were a loss or not.
Maybe something in these links will help you.
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