Taxes

[7emma7]

What is eBay doing about this?

Q: I’m a so-called gig worker but am uncertain about my tax obligations. How can the IRS help me?

A: The IRS wants to raise public awareness of the tax rules for gig workers. Many of them are unaware of their tax obligations. They don’t see themselves as self-employed and fail to pay self-employment tax. A page on the agency’s website — www.irs.gov/businesses/gig-economy-tax-center — is devoted to helping people who get paid for their activities in the sharing economy. The IRS also uses social media to increase communication and outreach.

A new law changing the 1099-K reporting rules should hike compliance in this area. Presently, third-party payment networks must send the 1099-K to payees who have over 200 transactions and were paid more than $20,000 during the year. Starting in 2023, these payers must send 1099-Ks to payees who are paid over $600, the same threshold for the filing of Form 1099-NEC on payments to nonemployees regardless of the number of transactions. More people than ever will get 1099-K forms that they’ll use when filling out individual income tax returns for 2022 and later.

[monroe67]

I imagine that eBay will follow the law, and will send 1099Ks to sellers who have met the required  minimum number of transactions and minimum dollar amounts.  

Really, questions about paying taxes and how much you have to pay in taxes and why you have to pay taxes -- those questions are better directed to tax accountants, tax preparers, etc., than to eBay or to this community of eBay sellers.  

[releasethekraken_1]

If your 2022 sales exceed $600, you’ll get a 1099k and the info will also be sent to the IRS.

[iart]

I'm pretty sure that eBay's position is that you are required, and always have been required, to pay taxes on your profit whether you get a 1099 or not.

In this case, I agree with ebay.

[klhmdg]

eBays payment processer and all payment processers will not be sending 1099K to anyone with more than $600 in income.

This change was put in to place to "catch" gig workers.

It will affect so many that have done any side jobs. Many people were not reporting income because they didnt get the 1099K BUT still should have been.

The new administration decided that that needed to change and lowered the amount to $600 so the IRS will know what the payment processers have sent and can get taxes for that income.

eBay is not doing this but will have Ayden send 1099K. It is the current administration Washington DC that did this and it will affect all gig jobs where you are not an employee of  the company. 

[m60driver]

Of course someone has to pay for the tax cuts gifted to the 1% by the previous administration.  There is no free lunch for you and I but I highly recommend reading David Cay Johnston's book "Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill)".  And the beat goes on.

[stuff4divas]

Ebay is doing exactly what your post says they're suppose to do

[galfam]

This law has been on the books for years (2010-11) and has been at 20000.00/200 items but has now changed to 600.00 to match the 1099 misc forms.   I have been sending out the 1099miscs for any contractor that made over 600.00 as long as I can remember. It just took this long for the gov to figure out how to force the people who have been cheating the system to pay their fair share If you are a small seller and do basic bookeeping you should not have to pay much more in taxes but you will have to report them.

 https://blog.tax1099.com/major-changes-to-1099-k-reporting/

[soh.maryl]

What is a gig worker? 

[dbfolks166mt]

Or show a net loss and increase your refund. 😀

[releasethekraken_1]

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@soh.maryl wrote:

What is a gig worker? 

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A person who works temporary jobs typically in the service sector as an independent contractor or freelancer, e.g. Uber drivers.

[dnasilver]

and don't forget the previous administration removed most deductions for hobbyist and part time sellers. If you are not a legit business best be careful with what you deduct.