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/

[vtgbeersigns]

Maybe if it's all losses I'm not sure as I've sold excess amounts of items some at a loss and some for profit.  And honestly it's been a disaster because I've lost most  itemized deductions from trump tax cuts except a few and now I'm paying $6000-10,000 extra a year vs getting $3000-5000 back vs prior.  When you get on a tax plan it's all interest and nothing but a sham.  I pay $20,000-30,000 a year in fed , rest goes to interest and neccesties , and work 60-90 hours a week btw job and eBay and have $0 dollars 90% of the year.  American dream , right?  

[jg.mason]

I think you mean the Consumer Financial Protection Bureau.

[jg.mason]

You might want to find someone else to do your taxes for you.

[vtgbeersigns]

It's not going to help because I make too much and have to file single.

[tobadger]

Don't waste your time on this project.

Next year we are getting the new 3 line tax form:

1) How much did you make?

2) How much did you spend?

3) Send the rest to Trump 😉

[mam98031]

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@meme6253 wrote:

Collecting money sounds like a Great hobby!

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One of my favorites !!!  😍

[mam98031]

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@vtgbeersigns wrote:

Maybe if it's all losses I'm not sure as I've sold excess amounts of items some at a loss and some for profit.  And honestly it's been a disaster because I've lost most  itemized deductions from trump tax cuts except a few and now I'm paying $6000-10,000 extra a year vs getting $3000-5000 back vs prior.  When you get on a tax plan it's all interest and nothing but a sham.  I pay $20,000-30,000 a year in fed , rest goes to interest and neccesties , and work 60-90 hours a week btw job and eBay and have $0 dollars 90% of the year.  American dream , right?  

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I didn't, so you didn't.  You can still use the Schedule C.  He did NOT take away deductions for costs of sale.  You may want to reach out to a professional tax accountant as it appears you have some significant misunderstandings.

[mam98031]

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@vtgbeersigns wrote:

It's not going to help because I make too much and have to file single.

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What does that have to do with seeing a tax accountant for help since you have some serious misunderstandings.  They help people that file single too.

[vtgbeersigns]

I don't have any misunderstandings about the code.  Yes you can write off eBay stuff not much w2.  The code costs me money on my W2 vs the standard. 

[fbusoni]

@nobody*s_perfect 

I started reading the text in italics and my head started spinning... I am indeed fortunate to be able to pay $240 once a year to HR Block.  

More to the point:  after reading through this thread, and having previously read at least a dozen other threads on the same topic, I come back to the same question:

When one lives in a society like ours, where there are laws that allow us not only to function and conduct ourselves in a civilized manner, but also to enrich ourselves through hard work, why in heaven's name would any sane human being be opposed to paying a small amount (subject to deductions to boot!) for the privilege of sustaining such a way of life?

THIS is why people from all over the world come here with just the shirts on their backs to make a new life for themselves.   They succeed and are happy to pay an income tax because they KNOW that they are contributing in some fashion to the perpetuation of our way of life.

I don't know... this seems so utterly self-evident to me.  

Maybe a propensity to tax avoidance should be listed somewhere in the DSM.

[nobody*s_perfect]

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@fbusoni wrote:

@nobody*s_perfect 

I started reading the text in italics and my head started spinning...  

people from all over the world come here with just the shirts on their backs to make a new life for themselves.   They succeed and are happy to pay an income tax because they KNOW that they are contributing in some fashion to the perpetuation of our way of life.....

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Yeah, sorry, the cut-and-paste lost the IRS formatting. Let's try again, focusing on the most relevant part, although the full text includes a useful example: 

1. if you receive a Form 1099- K, for the sale of a personal item that resulted in a loss, you should make offsetting entries on Form 1040, U.S. Individual Income Tax Return, Schedule 1, Additional Income and Adjustments to Income, as follows:

   Report your proceeds (the Form 1099-K amount) on Part I – Line 8z – Other Income, using the description "Form 1099-K Personal Item Sold at a Loss."

   Report your costs, up to but not more than the proceeds amount (the Form 1099-K amount), on Part II – Line 24z – Other Adjustments, using the description "Form 1099-K Personal Item Sold at a Loss." 

https://www.irs.gov/pub/taxpros/fs-2023-06.pdf

As far as paying taxes: I, too, am baffled by those who would prefer not to contribute to our common good. I find that many of them focus on one or more policies that they don't agree with, or a real or perceived frivolity or waste, while overlooking the vast majority of the spending that we do benefit from.

[lux.ra_14]

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@nobody*s_perfect wrote:  As far as paying taxes: I, too, am baffled by those who would prefer not to contribute to our common good.

Musk's companies have received billions from US taxpayers but pay little to no taxes.

That's a fact, not a political statement.

All sellers should report their eBay income and pay their taxes. But it's certainly understandable that the small folk have questions about tax fairness and the "common good."

[onefootflippers]

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@toomuchstuffagain35 wrote:

Trump DID take away the ability for 'hobby sellers' to deduct their expenses the last time he was in, but that has nothing to do with having to report income which is what the 1099 form helps keep track of.

Frankly, since he did that, you're better OFF running it as a business and keeping your deductible 'business' expenses.

But that's just me.

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No one should ever classify themselves as a hobby seller. The individual tax filer makes that determination, and there would be no reason to every select that status as it is worse in every single way. 

[mam98031]

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@vtgbeersigns wrote:

I don't have any misunderstandings about the code.  Yes you can write off eBay stuff not much w2.  The code costs me money on my W2 vs the standard. 

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What does a W2 have to do with this conversation.  W2's are generated by Employers for their paid employees.  

[vtgbeersigns]

What you don't understand Mr. eBay Schill, is I pay more taxes on my W2 income because I have to itemize because eBay sales.   I don't have an LLC.  There's not enough itemized deductions for the W2 vs 2017 yet the standard is up substantially.   I'm not wasting any more time replying to nasty people on here that think they know it all.  Pretty much I'm saying if I didnt sell on here , I could just run the standard deduction on my W2 get back a refund instead of owing from itemizing.