eBay

trading-post-619 · ‎03-12-2021

So, this seems to be going around now that the new stimulus bill was signed. on it, ot states, if you make 600.00 you will now get a 1099 not the 20k + 200 trans.

anyone else hear about this?

globexk · ‎03-12-2021

Yep it is the law in 2022. Someone please check my work.

releasethekraken_1 · ‎03-12-2021

@trading-post-619 wrote:
So, this seems to be going around now that the new stimulus bill was signed. on it, ot states, if you make 600.00 you will now get a 1099 not the 20k + 200 trans.

anyone else hear about this?

Yes. Some states had already dropped it to $600, so this was inevitable.

azh-71 · ‎03-12-2021

Originally it was just MA and VT. Then a bunch of states introduced it for '21. Once that happened I knew it's only a matter of time it will be everywhere. I think it has more to do with gig economy than with online sales.

gracieallen01 · ‎03-12-2021

Gee, does that mean that more people that owe tax will have to pay it now?

Not saying 'NO' doesn't mean 'YES'.

The foolishness of one's actions or words is determined by the number of witnesses.

Perhaps if Brains were described as an APP, many people would use them more often.

Respect, like money, is only of 'worth' when it is earned - with all due respect, it can not be ordained, legislated or coerced. Anonymous

azh-71 · ‎03-12-2021

@gracieallen01 wrote:
Gee, does that mean that more people that owe tax will have to pay it now?

No, it mostly means that a ton of people who don't make any money off of it will have to deal with 5 times as much paperwork. And quite possibly - pay less.

jayjaspersgarage · ‎03-12-2021

Pretty much, yes. They might as well made it $666.

The reality is that for sellers with homes and real jobs making six figures this will have no impact. We save every receipt known to humanity and have been doin it since we turned eighteen. One of the first thing my parents taught us was to set up annual files to drop receipts in, even if it was just for practice.

For other people with less stringent lifestyles it may come as a shock that paying taxes is necessary and the free ride over the past 25 years is over.

Remember the uproar when Amazon had to start applying sales tax? THAT was a sad day for early adopters of Prime at $49. Now that was a tax loophole many will miss forever. Retailers were so **bleep** that they would try to ban people with cell phones from looking up prices in the store isles. Oh how I miss the early days...

b86fiero · ‎03-12-2021

Actually ALL income is taxable according to the IRS.

Since eBay began collecting sales tax it is very easy for the IRS, state and local taxing authorities to cross reference income tax filings with eBay sales tax reports to find any under reporting of income.

And, with all of the States in dire need of income due to the economic impact of Covid, they are more focused than ever on finding tax scofflaws and making them pay.

A wise seller is one who reports all internet sales proceeds after legitimate deductions.

iart · ‎03-12-2021

$50 or $600 or $20,000... The amount shouldn't matter. If you make a profit selling, you are required to pay taxes on it.

coastaltechsolution · ‎03-12-2021

sounds familiar https://community.ebay.com/t5/Selling/Reseller-Tax-Law-change-for-1099s-in-new-Fed-Relief-Bill/m-p/3...

mdes162nj · ‎03-12-2021

My heart goes out to small sellers facing not only schedule C for the first time but also Self-Employment tax, quarterly estimated tax filings and for many an additional State Income Tax. My only advice is to keep diligent records monthly even if you don't earn a lot. It will save you a living agony come tax time. I think many may find it's not worth it. If the gov't wants to make sure every tax dollar is collected they should make it easier, especially for taxpayers like small sellers.

coastaltechsolution · ‎03-12-2021

But anyone earning money should have been reporting this already for years

Make income report it, does not matter where it comes from

Small sellers (small business) need to be more diligent on saving spending records for tax time

There is no reason to feel sad now, if you were earning money before it should have been reported

azh-71 · ‎03-12-2021

@coastaltechsolution wrote:
But anyone earning money should have been reporting this already for years
Make income report it, does not matter where it comes from
Small sellers (small business) need to be more diligent on saving spending records for tax time

There is no reason to feel sad now, if you were earning money before it should have been reported

You are not wrong, but the people who are aghast because they are coming to a realization that the Congress just made every sock, plate, or toy that they own a taxable inventory (unless there's a receipt for it) are not wrong either.

shado-x · ‎03-12-2021

if you make 600.00 you will now get a 1099 not the 20k + 200 trans.

Still waiting for FATCA to be repealed which didn't happen in 2017 ... it will be a very long wait now. Many Elections have consequences, not just one.

jayjaspersgarage · ‎03-12-2021

"You are not wrong, but the people who are aghast because they are coming to a realization that the Congress just made every sock, plate, or toy that they own a taxable inventory (unless there's a receipt for it) are not wrong either."

And every shirt, pair of socks, pair of pants, dishes, lamps will get you a nice tax deduction when you donate it to a non-profit org. It really isn't hard to offset a few hundred in taxable income.