07-15-2022 11:44 PM
If I don’t have a business, why am I charged taxes on items I sell on ebay? When you have a garage sale you don’t have to pay taxes on the items you sell. I’ve been selling on eBay for years and never had to pay taxes.
07-16-2022 12:50 PM
@evry1nositswindy wrote:With 3 sales, you have made more than I make over the course of a year! What makes you think that money is tax free? Any monies made from online selling is income, thus taxable. I have been filling out a Schedule C myself and this income, together with my spouse's income, does not cause me to owe any money. The standard deduction is quite generous. You can also reduce your income with deductions, like shipping costs, eBay fees, etc. Take a look at a Schedule C or consult whoever does your taxes.
Exactly. My eBay income reduced my tax refund by a grand total of $15.
07-16-2022 01:04 PM - edited 07-16-2022 01:05 PM
The "threshhold" for all US citizens is $1.
Not citizens.
Residents.
Even "illegal" immigrants are paying taxes on their income as part of staying unnoticed.
07-16-2022 02:52 PM
You are a business. The moment you listed ANYTHING on an online venue, you became a business. Just because you didn't follow the law, doesn't mean the law didn't exist. There's a saying about ignorance of the law is not a defense.
The legal REPORTING gross was changed to $600 (+). It's always been $600 (+) for mandatory reporting, just because you didn't report it, doesn't mean it wasn't the law.
Several years ago, laws changed in California so that anyone selling over 2x a year, yard sale, flea markets, craft fairs, etc had to have a resellers license. Funniest thing is that all the people who were affected saw and voted for the policy change. It was advertised as "thousands of California businesses aren't paying their fair share". So EVERYONE thought, hey, businesses should always pay their share, not realizing THEY were the businesses that were being targeted. Should have seen the uproar.
Then it was put to the vote AGAIN, with the same wording and same people voted for it! SMFH!
07-16-2022 03:01 PM
Should be some VERY painfully interesting threads about income taxes owed, suddenly appearing in January 2023, for those folks who STILL remain ignorant of the new $600 threshold.
Stay tuned, and bring lotsa popcorn. . ..
07-16-2022 03:09 PM
"Should be some VERY painfully interesting threads about income taxes owed, suddenly appearing in January 2023, for those folks who STILL remain ignorant of the new $600 threshold."
No kidding. Wonder if they will go back and do audits to past years for the bigger offenders? Might depend on how many irs agents there are that year?
07-16-2022 03:29 PM
I'm wondering if there won't be a bit of 'forgiveness' this year. Many of the new hires at the IRS are to replace a large tranche that retired in the last several years, and also because the agency was starved under another administration, they they're in fact just getting up to speed again. Next year, a different story.
07-16-2022 03:44 PM
"Should be some VERY painfully interesting threads about income taxes owed, suddenly appearing in January 2023, for those folks who STILL remain ignorant of the new $600 threshold."
I bet there will be two or three posts frantically explaining how 1099Ks are "illegal" and in fact "forbidden" by some irrelevant sentence in the US Constitution and how all sellers must join the posters in a High Class Action Suite against eBay, those evildoers.
07-16-2022 03:47 PM
@monroe67 wrote:"Should be some VERY painfully interesting threads about income taxes owed, suddenly appearing in January 2023, for those folks who STILL remain ignorant of the new $600 threshold."
I bet there will be two or three posts frantically explaining how 1099Ks are "illegal" and in fact "forbidden" by some irrelevant sentence in the US Constitution and how all sellers must join the posters in a High Class Action Suite against eBay, those evildoers.
Constitutional originalists. 😒
07-16-2022 04:45 PM
High class action suite😂
07-16-2022 11:32 PM
"The legal REPORTING gross was changed to $600 (+). It's always been $600 (+) for mandatory reporting, just because you didn't report it, doesn't mean it wasn't the law. "
That is a rule IRS years ago. They no longer have a minimum threshold for reporting income on your tax returns. So if you earn $400 doing something it belongs on your tax return.
07-16-2022 11:34 PM
@monroe67 wrote:"Should be some VERY painfully interesting threads about income taxes owed, suddenly appearing in January 2023, for those folks who STILL remain ignorant of the new $600 threshold."
I bet there will be two or three posts frantically explaining how 1099Ks are "illegal" and in fact "forbidden" by some irrelevant sentence in the US Constitution and how all sellers must join the posters in a High Class Action Suite against eBay, those evildoers.
"...how all sellers must join the posters in a High Class Action Suite against eBay, those evildoers. "
For what exactly. Complying with FEDERAL law? The rules for a 1099K are NOT Ebay's, but the IRS as voted in by the US Congress. Ebay had nothing to do with that.
07-17-2022 12:24 AM
@bearswatching wrote:High class action suite😂
The discovery is elegant, the chairs in the deposition room are all padded. Instead of tacky plastic water bottles there are actual pitchers of ice water and real glasses to drink from. The deponents speak in modulated tones and wear quiet, elegant colours.
07-17-2022 01:41 AM
Strongly suggest you pose your 'theory" to you local I R S office and see what they have to say..
07-17-2022 07:20 AM
All I ever inherited from 4 deaths was BILLS...
I have to BUY my Merch...
paid taxes all along, declared everything, took applicable deductions.
Wish I had your 'problem'.
07-17-2022 08:09 AM - edited 07-17-2022 08:10 AM
< why am I charged taxes on items I sell on ebay >
Taxes 101 – You pay tax on the profit only. The government requires you to report all income, but you adjust the gross by deducting expenses.