Taxes in 2022

[sylvercoins]

Ebay will be issuing a 1099 for sellers to report any income over $600 and 1 sale! Starting Jan 1st 2022.

Currently it's 20k and 200 sales. Ebay should have sent every seller of this new tax law but they haven't! If you don't read it in the news your toast! I'm lucky enough to have read it and since closed my ebay store and selling all my coins at my local auctioneer with no tax to report. I'm all done selling on eBay it's becoming a very un lucrative site.

[varebelrose]

Just to clarify, this will not affect anyone for 2021 taxes, this is FOR the year 2022 and will affect folks in 2023. BTW, many states have already lowered the threshold, it has been $600 for us in Virginia for a couple years now.

[fashionsandbeauty4u]

It's not just eBay doing this. All the websites that process third-party payments are required by law to do this. 

[iart]

This is great news!

Obviously, many sellers haven't been paying taxes on their profits. So they've been able to undercut other sellers who obey the tax laws. That unfair advantage is ending.

[stuff4divas]

@sylvercoins 

It's not true that eBay did not send notification of this tax law. They emailed us on 12/19/2019

And it doesn't matter what the amount is, as far as the IRS is concerned, when we profit from selling online, etc. it is reportable income, less expenses, exclusions, exemptions, etc.

 

[popblox]

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@sylvercoins wrote:

selling all my coins at my local auctioneer with no tax to report. I'm all done selling on eBay it's becoming a very un lucrative site.

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Hi, you literally just admitted to past tax evasion crimes, as well as your intent to continue evading taxes, then told the IRS exactly where to find you. . .actively participating in tax evasion.

[stuff4divas]

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@popblox wrote:

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@sylvercoins wrote:

selling all my coins at my local auctioneer with no tax to report. I'm all done selling on eBay it's becoming a very un lucrative site.

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Hi, you literally just admitted to past tax evasion crimes, as well as your intent to continue evading taxes, then told the IRS exactly where to find you. . .actively participating in tax evasion.

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I know that's right!!

😂

[fashionsandbeauty4u]

Following are some examples of situations that will not trigger Form 1099-K in 2021 but are highly likely to cross the new threshold in 2022 and beyond:

• Renting out your vacation home for a couple of weekends throughout the year on Airbnb or VRBO
• Selling a few thousand dollars worth of crafts on Etsy
• Using Stripe to collect payments for baked goods at summer farmers markets or festivals
• Driving part-time for Uber, Lyft, DoorDash, or Postmates
• Reselling garage sale treasures on eBay

If you receive more than $600 (no transaction minimum) from one of these platforms in a calendar year, you will receive a 1099-K for tax year 2022, and so will the IRS.

The income reported on 1099-K will be subject to self-employment income tax, leaving you responsible for the full amount of Social Security and Medicare taxes. 

[luckythewinner]

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"and selling all my coins at my local auctioneer with no tax to report."

"and found a way to continue to cheat on my taxes."

[nuclearomen]

don't understand how many sellers come here complaining that ebay will be giving them 1099k for $600 or more and state that the current is 20K ...yeah to get a 1099, but no matter if you get a 1099 or not you should be reporting what you make. It was NEVER only report if you made 20K+ that was just the amount to get a 1099k lol

[sjoe_do]

I don't think everyone who is upset about this are simply trying to evade taxes.

Many people sell their personal belongings on eBay. They no longer have the receipts, nor do they have the time to meticulously fill out a Schedule-C when they know, at most, they made a few hundred dollars in profit.  I understand some people have been tracking their expenses all along without complaint - and good for you! You are well set up to survive the forthcoming changes. Others will be pushed out of the market because the paperwork has become too much of a hassle and don't have the resources to deal with the IRS over petty earnings.

It's like, some people run their eBay profile like a small business and should be taxed accordingly. (The $20K threshold always seemed a bit high.) Others treat eBay like a garage sale, and in my opinion, the new law kind of screws with the latter folks.

[iart]

"Many people sell their personal belongings on eBay" They still have to pay taxes.

"They no longer have the receipts, nor do they have the time to meticulously fill out a Schedule-C when they know, at most, they made a few hundred dollars in profit." They still have to pay taxes.

"Others treat eBay like a garage sale" They still have to pay taxes...

And if they haven't been, they've been cheating other sellers by undercutting their prices.

[sjoe_do]

Good! Happy you'll have some of the competition cleared out for you.

[sjoe_do]

I should add - of course you are right regarding tax responsibility.

I'm saying some people have more resources and better skills to deal with that stuff. Those without the time or know-how - mostly sellers who are light, casual users - will stop selling on the platform.

In effect, the bar of entry is higher now.

[stuff4divas]

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@sjoe_do wrote:

I don't think everyone who is upset about this are simply trying to evade taxes.

Many people sell their personal belongings on eBay. They no longer have the receipts, nor do they have the time to meticulously fill out a Schedule-C when they know, at most, they made a few hundred dollars in profit.  I understand some people have been tracking their expenses all along without complaint - and good for you! You are well set up to survive the forthcoming changes. Others will be pushed out of the market because the paperwork has become too much of a hassle and don't have the resources to deal with the IRS over petty earnings.

It's like, some people run their eBay profile like a small business and should be taxed accordingly. (The $20K threshold always seemed a bit high.) Others treat eBay like a garage sale, and in my opinion, the new law kind of screws with the latter folks.

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There is no "new law" and there never was a 20K threshold to report income. All income is suppose to be reported.

The IRS has always required anyone who makes money to report it and if they qualify, they can write it all off so they would not have to pay any or little taxes.

There are several tax websites, including the IRS website, that allows 'small' sellers to input the info onto the 1040 and the software does all the work for free.

You really don't need to be the sharpest knife in the drawer to do this.

Believe me, people who try to act like 'they didn't know any better' are sure quick to 'know better' if they are owed money, but suddenly not if the owe money.