$600.00 now taxed

[skydragonslair]

Hello,

I have been reading a lot on here in regards to the new tax laws and have seen many comments about tax evaders, good riddance so on and so forth.  I would like to maybe give a different perspective and possibly give an  idea how harmful this will actually be to this economy and frankly capitalism.

You may think what right do I have to come on here and say anything with the few feedbacks I have but in reality I used to sell with a friend and have over 3000 of my own feedbacks (and paid taxes) from there and was recently selling with another. I was going to try to sell again with my original ID but can't now. Not don't want to but can't. So I do have some experience.

When I say what I am going to say I am not referring to people who make $19,999.00 and then probably open another to do again.

For many who sell on here it is a way to make just a little extra money and which I am not saying is a good reason to not pay taxes. So bear with me. We can no longer earn it out in the "real" world because we are disabled. Or maybe just old. Many reasons that have nothing to do with wanting to skip paying taxes.

For myself, I have paid taxes my entire life until I was injured at work, been royally screwed over and am now disabled. I do understand where many of you are coming from because at one point I probably would have felt the same way. I know there are many on here in similar situations and the same reasons they are now desperate. Or even more than they were.

So here is the problem for a lot of us.

If I sell over a measly $600.00 now, I will lose insurance.  Again, I am not the only one in this position. So $601.00 would cost me thousands of dollars that I do not have and yet I have plenty of medical bills I have to pay for something I should not  have had to pay a penny on. Insurance is literally forcing us to be paupers and now we can't even try to change that. It isn't paying taxes that have us opposing this. It is losing insurance. I know there are people who will always take advantage but for many of us, this is the only way we have of making a little more that we desperately need. it isn't even only  here but the entire country actually. AS an example: People who make say $2,000.00 at a part time job would then have to pay $13,000.00 more in insurance. And it isn't net profit but gross if a person is selling something.

I have actually sold some items for a old lady down the street who needs it for her meds. Heat. Now? I can't because I can't lose insurance. And I feel very guilty about that because I don't know what she will do and I can't help her.

We have been called tax evaders, deadbeats etc. but if it were only the taxes I think most of us would be extremely grateful. but it isn't and let's face it, it won't accomplish much of anything. If they were really wanting to crack down on people not paying taxes they would crack down on the already rich and I am NOT saying anyone should pay more than a fair share if they are rich but we know they don't. Nor do corporations. Which is why the Republicans didn't even put up a fight from what I understand. It was only directed at  us. Small businesses get screwed but not big  business.  And for those who just need a little more for needs, not wants but needs, they will have to go without again because we CAN'T even try. Because of insurance.

Some might be wondering why I said the economy and capitalism. The economy is obvious. We won't have those few extra dollars at all because it is not about not wanting to pay taxes fair or not. Capitalism? Think about it. There will now be millions of people who will be forced to look to the government for help. You may think you never would. You would if it came down to those you love suffering or....not. It is an ingenious move if you want socialism. 

Anyway, I'm not trying to whine or say you should feel sorry for anyone. Just another perspective because I for one am not a deadbeat and frankly, I don't know one. And it will definitely result in more people being forced to seek help from the government.

[house*of*paws]

---

@gosimus wrote:

@nocoolnamejane 

< Health care is a basic human right >     

I don't think so, no more than having an automobile is a human right.  We've been sold that bill of goods because the tyrannical members of the government want to get us dependent on them so they can dictate the health care they're going to allow us to have.  There's basic human truth in the old saying "Whoever pays the fiddler gets to call the tune."  I'd rather pay the fiddler myself, and be able to get that kidney transplant that the government would deny me because under their rules I would be considered not as valuable to society as somebody who'd be more likely to keep voting them in to office. 

---

As one who’s spent most of my professional life in the healthcare field … and who has dealt with insurance as both a provider and a user … I don’t recognize much factual reality in that statement.  It’s very nicely written propaganda, however.  😉

[skydragonslair]

Medicare and Medicaid.

They count everything as profit. No cost of goods sold etc.

I  know we all think of taxes being tied to our Fed and State returns but that is not how they view it at all. Not one bit.

From what I have been told that also applies to anyone who uses the insurance Marketplace. They pay whatever based on their income but if they sell anything, it is all considered pure profit and all of a sudden their premiums will go up in the future and pay retroactively.  But again, it isn't the same as what we fill out for profit and loss for our taxes.

[skydragonslair]

Hi rock.star

Yeah but the problem is that for insurance it is all considered profit. All of it. Gross not net. Can't even take away the cost of the item.

[keziak]

Everything I am going to now say is probably wrong because it's been too long. But I was on the insurance Marketplace for some years before it become possible to get on hubby's insurance. I do not recall it being tied to income. The premiums reflected the amount of the deductible not income. 

But as I say, maybe I just do not remember.  I certainly was not making a fortune on my online sales business.

[iart]

@skydragonslair 

Are you sure about this?

Are you saying that if I get a 1099 for $1,000, and have receipts for $900, they count the full $1,000? Even if I file with Schedule C? Or have I read your comment wrong?

Do you have a link to this? If not. Where did you get the info?

---

@skydragonslair wrote:

Hi rock.star

Yeah but the problem is that for insurance it is all considered profit. All of it. Gross not net. Can't even take away the cost of the item.

---

[skydragonslair]

I understand what you are saying and I agree. Being disabled or elderly does not mean you should not pay taxes on PROFIT. But as you know, not every dollar you bring in is profit and let's face it, on paper that can be made to look even less. However, they view every single penny as PROFIT. You can't deduct the costs associated with selling that item.

I also understand the confusion. How can they tax you on something you never had. But we aren't talking about paying taxes really. We are talking about they view it all as profit which takes you over whatever the amount is that you are allowed and then you lose your insurance because you can't afford it. I also understand there are many people who struggle to pay their insurance BUT there is a huge difference between paying whatever it might be based off of true profit/income compared to every penny you received whether you would owe any tax or not. Profit or  not.  It really isn't about any objection to possibly paying taxes.

I personally would not owe any tax anyway.  Many wouldn't. If I did, I would not mind paying any more than we all do. But they would lose insurance because it is based off of false numbers. (not sure that is the right word)

[glgenterprise]

---

@skydragonslair wrote:

From what I have been told that also applies to anyone who uses the insurance Marketplace. They pay whatever based on their income but if they sell anything, it is all considered pure profit and all of a sudden their premiums will go up in the future and pay retroactively.  But again, it isn't the same as what we fill out for profit and loss for our taxes.

---

That's not even remotely true. The only thing that the marketplace has access to for purposes of verifying your reported income is your tax returns. If you are properly recording your NET profits on your sales, you're not going to be paying based on your gross receipts.

My taxes had an issue when somehow, after 15 years, my spouse's SSN got screwed up in the system and the IRS thought that we had not been filing for several years. That showed up as part of the review for the marketplace insurance application that caught us by surprise in February - well after the closing of the enrollment period.

It is true, however, that if you report a lower income when applying and there is not a tax return from the previous year to support it, they will adjust your premium and charge you retroactively for it.

[chapeau-noir]

---

@house*of*paws wrote:

---

@gosimus wrote:

@nocoolnamejane 

< Health care is a basic human right >     

I don't think so, no more than having an automobile is a human right.  We've been sold that bill of goods because the tyrannical members of the government want to get us dependent on them so they can dictate the health care they're going to allow us to have.  There's basic human truth in the old saying "Whoever pays the fiddler gets to call the tune."  I'd rather pay the fiddler myself, and be able to get that kidney transplant that the government would deny me because under their rules I would be considered not as valuable to society as somebody who'd be more likely to keep voting them in to office. 

---

As one who’s spent most of my professional life in the healthcare field … and who has dealt with insurance as both a provider and a user … I don’t recognize much factual reality in that statement.  It’s very nicely written propaganda, however.  😉

---

And one had best turn down Medicare (ooo bad) and save up for that kidney transplant because, guess what, it will probably bankrupt them, if they're even accepted for it by most insurance companies (who operate on risk).  A for-profit health system (as we have got now) is the REAL determinant of who gets what.  That's something people just never seem to think through.

[dq3141]

---

@skydragonslair wrote:

From what I have been told that also applies to anyone who uses the insurance Marketplace. They pay whatever based on their income but if they sell anything, it is all considered pure profit and all of a sudden their premiums will go up in the future and pay retroactively.  But again, it isn't the same as what we fill out for profit and loss for our taxes.

---

This is patently false. Your “Modified adjusted gross income” is used, and that ONLY includes your profit.

And until you prove otherwise, I’m going to assume that your statement about Medicare/Medicaid is also false.

[skydragonslair]

yeah, I just used that because that is the threshold. Everyone's number would be different as to when it would lose them their insurance.

It would be so different if they didn't count it all from Gross sells as opposed to Net. But they do. I know we are all used to filling out our Fed and State income tax forms and that's it. Pay if you owe or don't if you don't. Profit and loss etc. Unfortunately for insurance it isn't at all that simple. Let's say I sold something for $1,000.00 but it cost me $900.00 in costs. They say I profited $1,000.00 and there goes my insurance. Because then I would owe $5,000.00 for a premium (just an example of something exorbitant)

From what I understand that type of computing also applies to people who get their insurance through the "marketplace".  And I have to admit it makes no sense to me because how can it be considered all profit? In other words we lose considerably more than we make so we can't even try to make things better.

As far as being wrong, I hope I am. Which is kind of why I brought it up. Hoping someone would be able to help. It isn't and never has been about paying taxes. Not for me. Not for many with very limited income who are being held hostage by insurance.

Do you by chance know if the information is accurate as far as someone using the marketplace is concerned? I have a friend who has been told (by someone who is supposed to know) that if she were to make another say $2,000.00 she would end up paying almost an additional $13,000.00. But again, not actual  profit and it certainly isn't worth it is it? The numbers might be off but I am just trying to show how ridiculous it is.

[dq3141]

---

@skydragonslair wrote:

yeah, I just used that because that is the threshold. Everyone's number would be different as to when it would lose them their insurance.

It would be so different if they didn't count it all from Gross sells as opposed to Net. But they do. I know we are all used to filling out our Fed and State income tax forms and that's it. Pay if you owe or don't if you don't. Profit and loss etc. Unfortunately for insurance it isn't at all that simple. Let's say I sold something for $1,000.00 but it cost me $900.00 in costs. They say I profited $1,000.00 and there goes my insurance. Because then I would owe $5,000.00 for a premium (just an example of something exorbitant)

From what I understand that type of computing also applies to people who get their insurance through the "marketplace".  And I have to admit it makes no sense to me because how can it be considered all profit? In other words we lose considerably more than we make so we can't even try to make things better.

As far as being wrong, I hope I am. Which is kind of why I brought it up. Hoping someone would be able to help. It isn't and never has been about paying taxes. Not for me. Not for many with very limited income who are being held hostage by insurance.

Do you by chance know if the information is accurate as far as someone using the marketplace is concerned? I have a friend who has been told (by someone who is supposed to know) that if she were to make another say $2,000.00 she would end up paying almost an additional $13,000.00. But again, not actual  profit and it certainly isn't worth it is it? The numbers might be off but I am just trying to show how ridiculous it is.

---

It sounds ridiculous because it’s not true. Your friend needs to reconsider who she takes advice from.

[yuzuha]

---

@skydragonslair wrote:

From what I have been told that also applies to anyone who uses the insurance Marketplace. They pay whatever based on their income but if they sell anything, it is all considered pure profit and all of a sudden their premiums will go up in the future and pay retroactively.  But again, it isn't the same as what we fill out for profit and loss for our taxes.

---

Wrong. I've been using the marketplace ever since it first came into existence (after a bad experience with being stuck in a job way longer than I should have stayed there because I needed the insurance) and I can assure you that income has NO bearing on your premiums. In fact, my income went UP last year but my premium went down.

[dq3141]

---

@yuzuha wrote:

---

@skydragonslair wrote:

From what I have been told that also applies to anyone who uses the insurance Marketplace. They pay whatever based on their income but if they sell anything, it is all considered pure profit and all of a sudden their premiums will go up in the future and pay retroactively.  But again, it isn't the same as what we fill out for profit and loss for our taxes.

---

Wrong. I've been using the marketplace ever since it first came into existence (after a bad experience with being stuck in a job way longer than I should have stayed there because I needed the insurance) and I can assure you that income has NO bearing on your premiums. In fact, my income went UP last year but my premium went down.

---

What marketplace are you talking about? In the one I’m referring to, people can receive a subsidy based on their income. And the subsidies were massively expanded last year.

[yuzuha]

Whoops, should have said "income has no bearing on whether or not you can get insurance." It might affect your premiums but it certainly won't prevent you from being able to get it.

[johnrj1226]

Those countries also have a personal income tax rate around examples 52% for Sweden population 10 million  Norway population 5.4 million personal income tax 38.2%+22% for Social Security

https://tradingeconomics.com/sweden/personal-income-tax-rate

https://tradingeconomics.com/norway/personal-income-tax-rate

Most European Countries have  high personal tax rates - including Germany, France and Great Britan and the like to tax purchased items and services like cable TV phones etc.  Check them out on Google 

 Have Swedish cousins that have visited  the US on 3 different occasions - they cant get over how things in the US are so cheap by comparison. even basic Levis 501s  $55, wireless phone hand sets - $600.

Plus There governments control when and how often you can go see a doctor e.g.  Tyroid exam once per year - have mine check every 90 day. just  a simple blood test..

All is not always how it sounds - you need to hear the whole story