New IRS Rule Under COVID Stimulus Lowers 1099 to $600 ~ Who will be ending their eBay sales?

[arizona-route-66]

How many small sellers will be ending their sales on eBay at the end of 2021 now that we are getting 1099'd for sales of $600 and more starting January 1st 2022 ? 

Me?  I'm just a U.S. Armed Forces Veteran struggling to put food on the table.  Sure I'll be gone at the end of this year like most.

I wonder what eBays profits will be in 2022, let me know.   Thanks

[bonjourami]

Most? With over thirty million sellers here, and thousands more joining monthly world wide..Ebay will never have a seller shortage.

[biggymoe]

I'm sure that you will be receiving numerous responses asking/telling you that you should have been reporting your eBay sales to the IRS all along.  Were you not aware of that?

[lacemaker3]

@arizona-route-66, I glanced quickly at your items sold during the last 3 months.

It looks to me as though you would probably be better off overall, if you reported your sales income on a Schedule C, because then you could also deduct all of your business expenses. If you store your inventory in your house, that makes a percentage of your household expenses become deductible business expenses. If you find that your business expenses are more than the income, then it can offset other income, and might lower your overall taxes owing.

[kensgiftshop]

@arizona-route-66 

You should be claiming your income anyway, if you get a 1099 or not.

The ones that already claim their income, it isn't going to make any difference.

[divwido]

I am not afraid to state what my tax data to the IRS.  A 1099 would not be an issue.  I have exceeded that point and I have expenses to offset it.

THE IRS WILL FIGURE IT OUT EVENTUALLY AND SEND YOU A BILL.

[luckythewinner]

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@arizona-route-66 wrote:

How many small sellers will be ending their sales on eBay at the end of 2021 now that we are getting 1099'd for sales of $600 and more starting January 1st 2022 ?

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A 1099K will have no effect on my profits, and might take me an extra half-hour to include with my tax return. 

Why in the world would I stop selling here? 

[m60driver]

For me it will not be about the money or paying the taxes but about the time and effort needed to maintain the appropriate records.   I might start this fall recording all my expenses to see if it is worth the effort and expense to file a Schedule C.  The irony is that, relative to the small sellers like myself, the government will not get much revenue if one files a schedule C and takes all the deductions.  For example,  a home office deduction will allow a small seller like myself to take the same deduction as a large seller.  So in the end Treasury will not get much from the likes of me, but say hey, they have to try to compensate for not going after the 1% and the Donalds of the world.   I can't believe so many here get their panties in a bunch about people not reporting an income amount that is less than selling a used car.

[releasethekraken_1]

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@arizona-route-66 wrote:

How many small sellers will be ending their sales on eBay at the end of 2021 now that we are getting 1099'd for sales of $600 and more starting January 1st 2022 ? 

Me?  I'm just a U.S. Armed Forces Veteran struggling to put food on the table.  Sure I'll be gone at the end of this year like most.

I wonder what eBays profits will be in 2022, let me know.   Thanks

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So you want people to tell you if they've been evading taxes by not reporting their income before now? What an interesting question.

The $600 threshold is just the point at which eBay/PayPal have to notify you and the IRS of your total throughput. It has nothing to do with your responsibility to report your income, which you have always had to do.

[mr-atari]

The real question is why you think the 1099 is going to cost you money? Taxes are the most expensive category of life in these former united states,  this fact is only getting worse.  Businesses do not pay taxes the way wage slaves do, the more like a business you can become the more crumbs the overlords will allow you to keep.  Highly recommend listening to the audio book rich dad poor dad- its free on youtube.

[dnasilver]

Why do you have to report sales to the IRS. If you made no profit, then it is not reportable income. If it is an inheritance, again not reportable income. Generalized statements are usually wrong.

[dnasilver]

Ebay is on the exchange and therefore reports. Feel free to look up their numbers. Also, being an American is not only serving but requires supporting of the USA. Just because you served does not mean supporting America is forgiven. Thanks for serving. 

[billscountry716]

If the IRS wants to imprison me for staying alive while I lost 45% of my income during COVID, they can come and get me. I'm sure there will be a lot of people with nothing to lose, just like me, who simply ignore the rules. The IRS will then have to choose whether or not to come after Joe Schmoe who failed to report $6,000 in income via eBay sales and Fat Cat who hid income streams to avoid tax burdens in excess of millions.

[evry1nositswindy]

You can fill out a Schedule C and deduct postage, eBay/PayPal fees, cost of goods, office supplies, office in your house...the list is long.  It is not hard to get the amount down that you have to pay taxes on.  It's extra work, but the 1099 will make it that much easier.

[chapeau-noir]

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@dnasilver wrote:

Why do you have to report sales to the IRS. If you made no profit, then it is not reportable income. If it is an inheritance, again not reportable income. Generalized statements are usually wrong.

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It doesn't matter - if you made no profit on your sales you will not have to pay taxes on the sales, but the revenue still needs to be reported. 

I had to report and pay taxes on the inheritance that I received several years ago. 

You are correct, though, generalized statements are usually wrong.