eBay

mopata · ‎03-05-2021

Currently, Etsy, Ebay and other online platforms must issue a 1099 to Sellers who have more than $20K in gross sales for the year. The Covid Relief Bill, as currently written, lowers the threshold to just $600. Small Sellers should expect a lot more paperwork and potential hassles with the IRS.

farmalljr · ‎03-05-2021

Well, if you want to have a "business" golly gosh, I guess it's time to act like one.

Uncle scam wants his piece of your pie (aka income tax). Lots of people have been cheating taxes, like the loophole with sales tax for years. Does it REALLY come as a surprise?

I guess those that have been less than honest, over the years, need to rethink if they are going to now do this legitimately or if they are going to quit and find a new way to make under table money.

I don't think any of us like paying taxes. But to think what is done electronically hasn't been monitored for some time, would be foolish. They know where every electronically touched dollar of every seller came from and where it was spent. Now they are coming after their slice.

stephenmorgan · ‎03-05-2021

Is there an internet link to the Bill. I would like to read what else is in it. All I find is news articles mainly focused on stimulus payments.

stephenmorgan · ‎03-05-2021

Yep you are right.

I am surprised the 200/$20,000 threshold has not been lowered or done away long ago.

All the money being spent has to come from somewhere.

Anonymous · ‎03-06-2021

No one is cheating the IRS. You can make about $1200 net a month without having to pay taxes and the $20,000 threshold is gross income which probably translates to about $1000 net a month which makes it perfectly legal.

Of course, all sort of things are monitored why do you think ebay (or paypal) set that perfectly legal threshold at $20,000? Rhetorical question. There is nothing for the IRS to come after until that threshold is met.

yuzuha · ‎03-06-2021

@Anonymous wrote:
No one is cheating the IRS. You can make about $1200 net a month without having to pay taxes and the $20,000 threshold is gross income which probably translates to about $1000 net a month which makes it perfectly legal.

You still have to report it to the IRS whether you pay taxes on it or not.

grasscarp · ‎03-06-2021

Show us where you get this info. It may be fake news.

releasethekraken_1 · ‎03-06-2021

@Anonymous wrote:
No one is cheating the IRS. You can make about $1200 net a month without having to pay taxes and the $20,000 threshold is gross income which probably translates to about $1000 net a month which makes it perfectly legal.
Of course, all sort of things are monitored why do you think ebay (or paypal) set that perfectly legal threshold at $20,000? Rhetorical question. There is nothing for the IRS to come after until that threshold is met.

That's absolutely hilarious. Netting $1,200/month, if that's your ONLY income, may mean that you don't pay Federal income tax, but you still have to REPORT the income.

And eBay/PayPal didn't set the $20k limit; the IRS did. Seriously, you really believe what you wrote? Have you not been reporting your income? When the IRS sees your 1099k next year, they're going to wonder how you went from zero to big money in a single year. When they wonder that, they audit people.

Best of luck to you.

releasethekraken_1 · ‎03-06-2021

@grasscarp wrote:
Show us where you get this info. It may be fake news.

Looks to be real news:

https://www.politico.com/news/2021/03/05/gig-workers-coronavirus-relief-bill-losers-473902

With some states already using a $600 limit, I think this was inevitable. So many sellers here don't even know they're supposed to report income, or deliberately don't. And I'm referring to people actually running a business.

grasscarp · ‎03-06-2021

Thanks for the link!

I am not surprised. Joe did promise higher taxes.

releasethekraken_1 · ‎03-06-2021

@grasscarp wrote:
Thanks for the link!

I am not surprised. Joe did promise higher taxes.

Two points:

1) This isn't "higher taxes"; this is "collecting taxes from people who should have been paying them all along". People are lucky the IRS is woefully understaffed, or there would be an auditing bloodbath on the way.

2) He promised higher taxes only for people making over $400k, i.e. people who made out like bandits with the "trickle down" tax cut a couple years ago. "Trickle down", my ****. I anticipate that he will keep that promise.

farmalljr · ‎03-06-2021

Fake news, if there ever was fake news. You are woefully misinformed. One only need look at the tax thresholds posted on the IRS site, to realize you are advising people to do something that would land them in a LOT of trouble.

You may also want to look at your state tax site as well, which usually holds lower thresholds for taxation.

If I remember correctly, ANY income over 3K a year combined (that's gross) MUST be reported.

kensgiftshop · ‎03-06-2021

@mopata

As long as you're claiming your income, whether you receive a 1099 or not, shouldn't have any problems with the IRS.

Have a great day

kensgiftshop · ‎03-06-2021

@Anonymous wrote:
No one is cheating the IRS. You can make about $1200 net a month without having to pay taxes and the $20,000 threshold is gross income which probably translates to about $1000 net a month which makes it perfectly legal.
Of course, all sort of things are monitored why do you think ebay (or paypal) set that perfectly legal threshold at $20,000? Rhetorical question. There is nothing for the IRS to come after until that threshold is met.

How about asking the IRS about that?

Have a great day