1099k

[donnav2323]

So under the new policy for 1099k  for 2022 we will have show a business venture and pay taxes for any amount over $600 per year total thru paypal  instead of the existing $20,000.  Is this correct 

[carloscycle]

If total yearly sales are only $1,000 per year (not profit) then it's not a business.

[monica-sells]

why would you mislead someone with this statement? 

Where did you get this information?

[duffy4444]

---

@carloscycle wrote:

If total yearly sales are only $1,000 per year (not profit) then it's not a business.

---

   Totally NOT true! You'd better get a CPA to give you a reality check before you delude yourself into a possible IRS audit that may include a good sized tax bill and more for earlier years.

[carloscycle]

You are full of it. Good luck making any money on your own. No point criticizing me as I'm out.

[iart]

I don't think your info is correct. You were asked where you got it from, and won't answer.

If you are wrong and others believe you, you're setting them up for an IRS audit and fines.

---

@carloscycle wrote:

If total yearly sales are only $1,000 per year (not profit) then it's not a business.

---

[carloscycle]

If you get a 1099k from ebay or anybody else just justify your costs equal to or higher than sales to equal zero profit. Ebay reporting my sales of far less than the 20k federal limit ( state requirement may be as low as $600) means I quit selling (my choice).

[nobody*s_perfect]

---

@carloscycle wrote:

If total yearly sales are only $1,000 per year (not profit) then it's not a business.

---

It must be true. I read it on the internet.

The financial advice that you get on these discussion boards is worth every penny that you pay for it.

I would take nothing seriously except documents actually provided by the IRS.   

[firejake2003]

Yeah I don't understand why sellers are confused about this.  I've reported all of my business income for over 15 years!  Maybe a visit to an accountant would help those who aren't aware of how to report income and expenses for tax purposes whether it's for their state or federal taxes.  This is nothing new.  SMH

[firejake2003]

You nailed it!  Any seller who handles sales through electronic means is subject to receipt of a 1099 from their payment processor.  The only way to get around it is to accept good ole' cash.

[firejake2003]

It's not ebays job to determine if you make a profit or not.  Your proper recordkeeping and good business practices determine that.  You only pay income taxes on your net income after expenses, not the amount of money that you bring in or reported on your 1099.  That's a basic tax rule.

I've received 1099's every year I've been in business from my payment processors, no matter what the dollar amount is.  They're legally required to report any income they process for you.  However you are the one who reports your expenses that reduce your tax liability.

[carloscycle]

First year I ever received 1099k from ebay and the last as I am not a business.

[fern*wood]

---

@carloscycle wrote:

First year I ever received 1099k from ebay and the last as I am not a business.

---

I wonder if I could have just claimed I wasn’t an employee whenever I received a w-2.

[carloscycle]

I think you could. If you feel you are paying too little tax you can donate.

[erkosuniverse]

I saved this screenshot dated October 19 2021

It was scaled back from the initial proposal of $600.00 to $10,000.00

I myself do not know what to believe anymore

[slippinjimmy]

---

@erkosuniverse wrote:

I saved this screenshot dated October 19 2021

It was scaled back from the initial proposal of $600.00 to $10,000.00

---

The banking activity reporting is a completely different thing than the 1099K reporting that eBay is required to do. There have been NO changes to that reporting and no indication from either party in DC that there is ANY interest in changing the current (effective 01/22) $600 rule.