mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@coolections wrote:Yoo keep saying don't worry over and over that anything can be deducted, nothing has changed, and no one has to pay tax unless they purchase items for resell. Lots of misinformation going on here. Everyone should be using a professional not someone on the internet. Next years taxes are going to be the most confusing and messed up tax year in the history of taxes.
You need to read what I have said closer. I have never said that "anything can be deducted" on this thread or any other.
I've also said MOST sellers that are selling off their own personal stuff won't see an increase in their income taxes. I never said that every seller of wouldn't. There are times especially in collectables that selling off a personal collection of something can net you a profit. That is taxable income.
I have repeated encouraged sellers to research and learn what IRS expects of them and what is and isn't taxable income.
Next year's taxes will only be confusing and messed up if you don't do your homework. The tax laws have not changed. The ONLY thing that changed is the threshold an a FORM.
Please stop trying to twist things I say to meet the needs of the position you'd like to represent. It isn't useful and it isn't necessary. Anyone that has been following this thread knows you don't agree with me. That is absolutely fine. You have every right to your opinions and views as do I.
What the other poster said isn't wrong. The lowering of the 1099K threshold is the threshold on a FORM, nothing more than that. Just when a marketplace or money processor must issue the form for the previous year. It is NOT a minimum threshold for when you have to report your income. IRS doesn't have such an animal and hasn't had for years.
So don't confuse the minimum threshold on a FORM to also be the minimum reportable income to the IRS because the two are NOT the same.
For those that have always been reporting their sales earned on the internet, all this lowered threshold on this form means is that they get the form when they meet a much lower amount than in previous years. Other than that it doesn't mean anything to them.
Now I get it there are some that have not claimed their sales earned on the internet for a variety of reasons. Some are legit and legal and others are not. If you get a 1099K for 2022, you will need to represent it on your Federal tax return. On your forms you can justify what if any of it is actually taxable income. You will have the opportunity to provide complete information.
@700silverv wrote:Lets see if this makes sense to you, a 1040ez is free to file online, to include the proper form for a 1099 will cost the taxpayer money whether using an in person tax professinal, buying tax software or using an online service, while the money is not a big issue to you, me or most other people it will affect some.
Also we have to look at the fact that some people do not file, now with the new requirement, they will have to file, reguardless if they owe taxes.
I realize this does not affect you or me but would like you to understand that we are not talking about you or me, this does affect people in ways you seem to not grasp.
There is no need to be condescending. I understood what you previously said. You seem to forget there are those that will be able to fill out the forms on their own and file them.
You are reading more into my post than I said. Don't presume you know me just because you don't agree with what I said. I never said or implied that " the money is not a big issue". That is you saying it, nothing I think or feel or expressed. So stop trying to sling mud with made up accusations.
"this does affect people in ways you seem to not grasp", again with the mud. You assume way too much all just because you disagree with a post. It is completely unnecessary as people are allowed to have different points of view / opinions.
Even if the threshold for the FORM gets changed it is not likely to ever go back to $20k as too many people thought that if they made less than that they didn't have to report it on their taxes. Not sure how anyone makes that mistake as the threshold is for a FORM and nothing more. IRS doesn't have a minimum requirement for reporting income.
So if they change it, maybe it will end up being $5,000 or something, but still many people will have the same problem as they are concerned about now.
@nuweldinc wrote:I casually sell online just to declutter my house in an environmentally friendly way. Now I'm going to be taxed for money that isn't actually income because I spent a lot more money buying the product in the first place than I made on selling it...
Not necessarily. You need to read and learn about the rules that guide us. The rules for selling off personal items is not the same as those of us that buy stuff to resell. While if you sell $600+ you will get a 1099K form and you do have to represent that on your income tax forms, it does not necessarily mean you will be paying income taxes on that money.
Do your research.
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
@movieman630 wrote:Honestly, What's the point?
There's no petition that's ever solved anything, just as any protest has ever solved anything. Nobody cares anymore. Especially the government. They just got funding for 80k new IRS employees... The last thing this government is going to do is let you keep more of your money.
I know this stuff gets really confusing. Especially when some reporters report things a bit differently than others. The way they say stuff conflicts with each other and we are left to determine what the truth of the matter actually is.
The Congress passed a bill that will give the IRS about 80 Billion dollars over a TEN year period in which to hire new employees as needed, in whatever departments they are needed in, buy new equipment as needed, upgrade computers, etc. etc.
Some would what you to believe that they are going to be spending all this money immediately and hiring only agents to audit the middle class people and that is simply an flat out lie. But it is meant to get people upset and push back on the bill that is funding IRS. Always look for the correct facts as there are too many people out there willing to lie to get people upset about stuff that there is no need to be upset about.
@movieman630 wrote:Whatever the case may be. I wouldn't fund them. I'd de-fund them.
So if we don't pay our taxes that we owe, how do we fund things then like roads, bridges, natural disasters, airports, etc. Etc.
@makra3262 wrote:So they want to tax you for personal property which you bought with your after-tax dollars. That’s double taxation. And if you have a garage sale and sell over $600 you’re legally obligated to claim that as income also. How is that fair? And how is that legal or just? Sign the petition. This administration will just keep spending your money however they want because you’re footing the bill
Keep in mind that the 1099K ONLY pertains to stuff you sell on the internet. Not out of your front yard.
If you are only selling off some of your personal belongings, just follow the IRS rules and you should be fine. It is not likely that you will owe any additional taxes, but you will need to report the income.
Even if the threshold on this form is raised, it is REALLY REALLY important to understand and realize it is simply raising a threshold on a FORM. It is NOT raising the threshold on income you should be reporting to IRS. The two are NOT the same. The 1099K is merely a form and nothing but a form. It does not now nor has it ever set the amount of income you have to have before reporting your income. We have always been responsible for reporting our income whether it is $400 or $40,000.
