mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@dbfolks166mt wrote:One more thing if one lives in a state that has a state income tax they may have a threshold of $600. That 1099K is good for both the IRS and state income taxes - one receives 3 parts one for the seller records, one for the IRS and one for the state income tax. Sellers need to check into that too.
The 1099-K has nothing to do with state sales tax it relates to income tax. EBay handles the sales tax which the seller never sees. EBay collects it from the buyer and remits it to the individual states as required.
He did not say "sales tax". He is talking about Income Taxes. Some states do require a 1099K at a certain Threshold.
@tobaccocardyahoo wrote:The IRS did state that it was going to raise the threshold to $5k, last year.
Since then, the Supreme Court has ruled that government agencies and departments must follow the law as written in unrelated cases.
The IRS has been mum, perhaps because they do not have the right to change the requirement from $600.
No they didn't. They said they are PLANNING to raise the threshold to 5K for 2024. They can't do that without Congressional approval.
Last year they didn't announce the change until very late in the year, I suspect this year will be no different. Especially in an election year.
But it really doesn't matter. With or without the form, we are all responsible for reporting ALL our income. There is no threshold on that.
SCOTUS had nothing to do with it.
Congress passed a Bill to allow for the Stimulus payments to Americans a couple years ago. It requires Congress to approve changes since currently the $600 is the rule.
I doubt that IRS just decided to "do it" and arbitrarily increase the threshold on the form for 2023.
This issue is currently moving through Congress.
@oddznends2007 wrote:Remember, its the democrats who are trying to micromanage income tax and squeeze pennies out of the low and middle class income people who already need to sell items in order to afford other ones.
As has been said MANY times. Getting this form does not mean you suddenly owe income taxes on whatever you got paid on this site. It is after all ONLY a form. With or without the FORM you are suppose to report all income on your Federal Income Tax reports. So why does it matter what the threshold for this form is. It does NOT change your income taxes you owe, as you are suppose to report all income.
Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.
