New Tax Threshold

[dragonsmoke6969]

I've done some digging around and it was suggested that we hobbyists lobby together and spread the word to write the IRS tax reform division. I'm going to start discussion groups on all the platforms I use and anyone else that will listen. The main point being that the laws are forcing hobbyists to become businesses. Website to follow.

https://www.taxpayeradvocate.irs.gov/submit-a-tax-reform/

[hartungcards]

I think Elon Musk shut down the IRS tax reform division yesterday.

[jerseyboymusic]

This isn't new... you have always had to report income. 1099 or not.

So, if you sell all your costume jewelry, you still need to report it on your taxes.

Hope you find success!

[dragonsmoke6969]

When I first started the threshold of was 15k and its slowly been lowering. Next year it goes down to $600. 

[ebooksdiva]

The 1099 threshold has nothing to do with you being required to declare your earnings on eBay. If you earned a dollar from selling you should declare it.

You should also check with your state, some states reporting threshold is lower. 

[12345jamesstamps]

Deductions...and all receipts collected for 2025 is what one should do.

You buy something in 2025 and sell it...it's a deduction.

[dragonsmoke6969]

Can you give me a reference? Thanks 

[ebooksdiva]

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@dragonsmoke6969 wrote:

Can you give me a reference? Thanks 

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Talk to a tax accountant they will tell you everything you need to know. 

[buyselljack2016]

@dragonsmoke6969 

That poster is just yanking your chain forgetting to use a sarcasm emoji, but a tax professional can likely help you with meeting your income tax filing obligations for 2024, as well as for amended returns for the years when you did not understand tax law filing requirements.

[dragonsmoke6969]

Correct.  This is more about hobbyists having to keep track of expenditures, supplies and any other costs. Having to do all this makes it a business and not a hobby.  The threshold is about being taxed on the income or not. Not reporting it. Personally I don't know any hobbyists that can afford to pay platform commission fees and taxes. Thats 30% of Gross. Now we're loosing money just to have fun.

[dragonsmoke6969]

Can you give a source?

[monica-sells]

Part of the 'issue' with your thought process is you are being too myopic, in that you are only seeing the 1099-K threshold as it applies to ebay. I suspect ebay was not even the "target' as these newer regulations have been implemented more to accommodate the 'gig economy', and a method to track payments to individuals as easily and accurately as an employers/employee W-2 or a K-1 distribution...

My point is, where do you draw the line as to who gets this form? You can't exclude hobby sellers or part-time delivery people.

[jerseyboymusic]

@dragonsmoke6969 

The threshold for a 1099 to be generated doesn't matter.

I make under $15k per year on Ebay, and still did my taxes, and declared my income, 1099 or not.  It doesn't matter if you are a "business" or "hobbyist"

It also isn't Ebay's decision, it is the US Government's decision

[nobody*s_perfect]

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@dragonsmoke6969 wrote: ....  The threshold is about being taxed on the income or not....

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That is your underlying misperception.  The threshold is about whether a third-party has to send you (and the IRS) a 1099-K.  It has nothing to do with your responsibility to report the income whether you consider yourself a hobby or not.

[golfingaddict]

@dragonsmoke6969 

eBay has been working on this issue for years.

The eBay Government Relations department is the group that works on issues like this.

You can join and get updates and they will show you ways to get involved.

Government Relations - eBay Inc.