mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@dragonsmoke6969 wrote:
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/
What you need to do is take it to each State Congress person. It will take Congress to change this as it was Congress that set the $600 threshold. IRS has just been pretty successful about lobbying for delays in that threshold.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
The above thread gives you what IRS has planned through 2026.
With that said, WHY is it a problem receiving this form. It is ONLY a form. It is nothing more than a form like a W2, 1099-int, 1099-misc, etc. etc. It does NOT now nor has it EVERY set a threshold for when you have to claim money on your income tax reports.
The FORM has a threshold which then requires certain entities to have to issue the FORM. It is as simple as that.
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.
https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...
@dragonsmoke6969 wrote:Can you give me a reference? Thanks
They were joking, but who knows what the future holds. They just shut down the Consumer Protection Agency.
@dragonsmoke6969 wrote: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.
Because a person is selling collectibles that they use to collect as a hobby, doesn't make them a hobbyist when they go to sell them off. They are selling off personal assets. That isn't a hobby. Unless their hobby is collecting money. And if that were true, I'd be a hobbyist seller too as I love to collect money. LOL
NO, the FORM does NOT set the threshold in which you have to report income. It is a threshold for that specific form to get created. Unless the thresholds on other 1099K forms are also thresholds for reporting income?!?!? I think the lowest one is the 1099-int, which is $10.00. It makes absolutely no sense that some believe the threshold on a 1099k is different from the thresholds on all the other 1099 forms.
There are some 20 different 1099 forms give or take a few.
If you can prove you have lost funds, then you won't have any additional income taxes on money earned selling stuff.
@tobaccocardyahoo wrote:Ebay has been lobbying to stop this for several years - through Ebay Main Street.
It has gone nowhere. Congresscritters and Senators have sent kind letters and the IRS has delayed implementation in full but if they do not tax more, they cannot spend more.
Reporting your income to the IRS should not affect the tax you pay, but not all internet sellers follow the laws.
Ebay in concert with sites like Amazon [yes they worked together on this issue] likely cause the delay of the implementation of the 1099K for several years BEFORE it actually happened. They fought it hard and they did get it delayed for a long time.
@kensgiftshop wrote:
@dragonsmoke6969 wrote:When I first started the threshold of was 15k and its slowly been lowering. Next year it goes down to $600.
That was just when Ebay had to report your income.
You've always been required to report it, no matter the amount.
You've sold 560 items so I think that's a little more then a hobby.
Seems likely that something in there [560 items] was likely purchased to be resold here and/or was inherited which carries different rules too. I agree, unlikely hobby selling.
You might consider correcting your Title to this thread. You can do that using the little arrow on the upper right of your original post.
Your title is not correct and is misleading. There has not YET been ANY "new tax" threshold. It is the new threshold for the FORM. Big difference.
Yes. It may have been a hobby to collect all the stuff a seller has decided to divest from. Being a hobbyist doesn't mean you don't make profit on the sales. And if selling 100's of items and sometime 1,000's, at some point your are not a hobbyist seller anymore UNLESS your hobby is collecting money.
