I am selling only my own personal items without any reciepts why the 1099? So unfair

[quick894321]

I am selling only my own personal items from up to 50 years ago without any old receipts why did i get a 1099?  This is so unfair..My wife of 40 years passed away and i have been selling her old jewelry and my collectibles from decades ago. How am I supposed to have receipts for for all the items or even know whether i am making a profit or loss. I do not have an Ebay store or any type of business with my selling...What to do?

[kensgiftshop]

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@rainbowchaserecords wrote:

What do you mean "That's their own fault for not reporting their income like they were supposed to be doing"? Hey, the threshold used to be $20,000 in 2023 and prior years. Not all of us are full-time power sellers... Many people, like myself, sell items from personal collections that have already been taxed! Also, when you sell an item, you don't always make a profit. Many sellers sell at a loss, plus you have to pay the high Ebay fees, so now you are in the negative with what you sold. On top of that, the IRS wants their cut if you sell more than $600 now, so they deliberately corralled everyone in. For many of us, this is a side thing, just to enjoy the hobby and try to make ends meet.

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That's when payment processors are to report the income.

You've always been required to report any extra income.

You gotta report the income from your side thing.

[rainbowchaserecords]

Agreed! Many of us are NOT full-time power sellers and are now getting taxed like we are businesses.

[youn2240]

I'd suggest just attempt to fill out your tax forms because the way you guys keep acting like it is impossible leads me to believe you never really do that so it comes into the territory of it appears a certain way and you're adding to why it be that way and you might not want it to be like that. but anyway just try it out and i'm sure you'll find out it isn't nearly as painful as you were lead to believe. 

[kensgiftshop]

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@rainbowchaserecords wrote:

Agreed! Many of us are NOT full-time power sellers and are now getting taxed like we are businesses.

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No, you're going to be taxed like you're earning extra money which is supposed to be reported.

[silverstatetreasureboxes]

@monroe67 

The AARP tax preparers must take a IRS test and pass 100% before tax season ( at least in my area).

     And yuck I had to write out a check for the IRS today!

[buyselljack2016]

I'm going to give the IRS some money, but it sure won't be today, tomorrow, the next day, or the next month 😁

[fashunu4eeuh]

@rainbowchaserecords wrote:
”Hey, the threshold used to be $20,000 in 2023 and prior years. Not all of us are full-time power sellers...”

Not even close to being a power seller here, but it’s still my responsibility to know and follow up on my tax obligations. I could be wrong, but it seems there might be some confusion here about what it means to receive a 1099, or what the IRS rules are for 1) reporting one’s income to the IRS, and 2) paying taxes on that income.

It does not really matter what the threshold was, because whether $20000 or $600, the obligation to report income is still required. If a seller made over the threshold for receiving a 1099, or under the threshold for a 1099 to be generated, the requirement to report and potentially pay taxes on one’s income remains the same. The threshold is just a measure for whether a 1099 gets issued, not for whether one should report said income. (All income needs to be reported.)

It’s a hassle, and creates additional paperwork and record keeping, but a seller needs to show offsets to the income to zero out the tax liability. If one cannot do that because evidence is not available to establish such, then i’d avoid putting that specific item up for sale.

[buyselljack2016]

I use an online tax file service that does the whole meqillah. Federal for (0) $. Nominal charge for the state file.

ETA: including schedules.

[annadryl]

My tax site offers federal and state filing with 1099, w2 and insurance for free. Extra forms like deductions are I think $40. It's quick and easy and well worth it, shipping and fees cancel almost half of it out for me. Learn how to do taxes, it has to be done. 3k items sold, you ARE and have been a business for years. Google something like <tax returns 1099 free> Good luck~

[respectsyoutech]

There are also options for free help filing (if you qualify for this).

Many towns / cities especially offer this with professional help to both elderly, and those of lower income thresholds (if interested in this, check for the dates this is offered and where to not miss it).

[johnrj1226]

Talk to a  tax consultant they  can help you with  your issue - yeah they have a fee

and yeah  life ain't  fair until you know  how to git er  dun

[johnrj1226]

Tell you story to the IRS  but  first  read this

Taxable income | Internal Revenue Service

IRS (.gov)

https://www.irs.gov › filing › taxable-income

Nov 29, 2024 — Income is money, property or services you earn through work, investments and other means. Most income is taxable unless it's specifically ...

[rainbowchaserecords]

LOL! You only had to report if you earned $20,000 or more in 2023.

[rainbowchaserecords]

$20k for 2023, $5k for 2024, $2.5k for 2025 and $600 for 2026. As I stated, we are not all power-sellers and are being taxed like we are because of lower thresholds. Can you understand that?

[dryophelia]

@rainbowchaserecords 

The threshold is the amount that has to be reported to IRS. Because it was reported, the entity reporting it, sends a copy to you so you can compare your numbers to what was reported. 

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@rainbowchaserecords wrote: Can you understnd that??

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