Hello to everyone. I mostly sale my own used stuff, why I have to again pay income tax, not fare at

[mam98031]

The tax laws did NOT change.  A FORM that IRS has changed, but we were always suppose to report our income with or without an 1099K.

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.

Some sources to help you with your tax issues.

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

[femmefan1946]

Nine years of selling high end collectibles, new brand name clothing, etc.

And only now  thinking that there might be some tax implications.

Oh myyyyy!  -- George Takei.

[mg152]

😂 I don’t know about you but I can’t afford anything the op has listed.  Lawdy is right. Lol!

[mg152]

1. Life isn’t fair. I wish it was

2. you have new expensive items listed.

3. pay taxes like us mere mortals.

Not to be rude but the rest of us pay up every year 

[maidenru_40]

Saying income in subject to tax. Is bull**bleep**. Who says you can tax it. ? The government? Lol. Going from 20k to 600 is not ok. 

[dbfolks166mt]

You pay income tax because it’s income. 

When you purchased the item originally, you paid sales tax. 
Your buyer may also pay sales tax when buying from you, unless they are in one of the hand full of states without sales tax. 

If you feel this in unfair, you should contact your state legislators and voice your concerns. These are the people who can change it. 
But they aren’t going to change it. The revenue generated by online sales is enormous. Now that they can see how much $$ is pouring in everyday, they will never go back. 

     From an income tax perspective the Fed's will have no idea how much extra revenue is generated until they actually get through the 2022 tax filing season + xx years to pull the data together and even that may be tough separating all the variables to substantiate the results. 

     There is no doubt it will increase tax revenue but it may fall way short of what the Office of Management and Budget estimated it to be. The changes in the sales tax laws have definitely boosted the states sales tax revenue. 

[djvp53]

This is not good advice. If you have a 1099, you should report that on your tax return. The IRS won't just assume that if the seller doesn't report the revenue it was because they didn't owe any taxes on it. The seller may have offsetting expenses and the net may be low, zero, or a loss, but if that's the case, the revenue from the 1099 and the expenses should all be reported on the tax return.

[chapeau-noir]

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@maidenru_40 wrote:

stop spreading false information. If you had an income of over 20k before. Yes. You had to pay. You cannot lower the threshold by $19400 right after saying. The irs. Is NOT GOING AFTER the little guy. That’s specifically what they said. 

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All profit has always been taxable.  Now we are getting a form.  Please stop spreading false information.

[ms.rodriguez*]

Do NOT confuse sales tax with income tax.  You have always had to report income earned.  Relax.   You had several expenses on each item that you sold.  You deduct those expenses and if there is any money left, that is the PROFIT.  You would pay a tax based on that profit + ALL of your other income.   Here are some of the expenses that you can deduct.    ALL ebay fees,  ALL shipping fees, ALL shipping supplies, the cost of the item, etc. etc.     Did you buy a printer?  A camera or tablet for your ebay sales?  These devices can be partially written off since you can use them for more than a year.    

If you go to MY EBAY, there is a breakdown of your fees month by month. If you ship using Ebay shipping, the amount that you spent on shipping is there too. 

Start saving receipts if you haven't done so.

[coolections]

I am not allowed to bash the IRS here on the boards as it makes people angry. What I can say is if you do not like the new tax system write your congressman.

[krazzykats]

And let's not forget paying those FICA and self-employment taxes.  

Small Businesses Self-Employed | Internal Revenue Service (irs.gov)

[mam98031]

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@maidenru_40 wrote:

Saying income in subject to tax. Is bull**bleep**. Who says you can tax it. ? The government? Lol. Going from 20k to 600 is not ok. 

---

@maidenru_40 

You have the same misunderstanding as many people have.  The 1099K is a FORM and ONLY a Form.  It does not now nor has it EVER set the minimum threshold for reporting income on your income taxes.  IRS has NO MINIMUM requirement for reporting income.  So even if you sold $400 worth of stuff here or $40,000, you need to claim it on your income taxes.

Consider this.  When you work for an employer, draw a paycheck, but your year end W2 was about $15,000 in income.  Do you think that because in previous years the minimum threshold for issuing a 1099K for money processed on the internet that the person with that W2 doesn't need to claim their income on their tax report?

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.

[mam98031]

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@maidenru_40 wrote:

stop spreading false information. If you had an income of over 20k before. Yes. You had to pay. You cannot lower the threshold by $19400 right after saying. The irs. Is NOT GOING AFTER the little guy. That’s specifically what they said. 

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They speak the truth.  You simply misunderstand what a 1099K is.

[mam98031]

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@coolections wrote:

I am not allowed to bash the IRS here on the boards as it makes people angry. What I can say is if you do not like the new tax system write your congressman.

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It is a FORM, not a tax law.  It is nothing more than a form.  The Tax laws on when someone needs to report income has NOT CHANGED.

[mam98031]

@maidenru_40 

Also let me add that Ebay had NOTHING, ZERO to do with the 1099K change.  In fact you might consider thanking Ebay as this change was on the table for a long time BEFORE it actually passed Congress.  It was sites like Ebay and Amazon that fought this change long and hard that delayed it as long as it did.

Now it is Ebay and other sites that are fighting hard to get the threshold raised.  A little research goes a long ways.

But again, the threshold on a FORM, ANY IRS form does not set the minimum requirement for reporting income.  It is a darn form and nothing more than that.  So even if they raise the threshold on the 1099K to $5 or $10 thousand, those that have a GROSS sales less than that will STILL need to report their numbers to the IRS.