new 600 dollar SALES threshold for IRS Reporting , and ebay 1099-k required

[themayqueen]

This is  what's going on  with the  draconian,   insane  IRS requirement  for ebay to send far too many sellers  a 1099-k form, which is also sent to the IRS.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-heard-loud-and-clear-irs-postpones-implementation... 

 If we  sold more than $600  worth of anything during each year, it will be reported to the IRS  and their system will treat it as reportable  income. Even if you are selling at a loss, or reselling a used item  of yours, and you won't legally be required to pay any tax on it. If you did not make a profit off of it., or your income is too low, then you won't owe anything. Yet this horriffic new  Biden admin rule,  tells the IRS that you do owe or  that it should show on your tax form. You will then have to prove that you  didn't make a profit.

This could be impossible for people who don't  have a receipt, or are selling items  that are 5, 10, 20, or 50 years old. No record may exist for what you paid for it,  only what you sold it for.

 This  will be triggering  the  IRS system  for God knows what, to send out a fake  notice of discrepancy if your  tax returns ( or by not filing), show  something different  from what they THINK they  know about your  income.

This is outrageous and detrimental, it is not a truthful  way of informing the IRS at all.
Previously, before Biden's new regulation, the reporting threshold was $20,000  worth of online sales, and 200  transactions, before  ebay had to send out a 1099-k to you and report it to the IRS.

So this recent change is   just not workable at all,  it is now being  put in action since January 2023,  and  sellers  can expect to receive a 1099-k if they have sold 600 bucks or more of household used items. Also, this  will be reported to the IRS.

OUTRAGEOUS!

*********Now that  there's a change of who controls congress, we all need to step up and call our Representatives and demand it return to what it was before. Or give us exemptions.

Give good reasons in your letter or call -   such as, We are selling used items  of our own , we aren't a business. we are just trying to get SOME of our money back  by selling stuff we couldn't return   to the store, etc.( be truthful of course) *********

[12345jamesstamps]

Nothing has been settled in stone yet. Those would worried about it last year hurt themselves by stopped selling which was great for us sellers still selling.

[themayqueen]

ps, this was  postponed for a year but is now in effect. Since it's  not been removed yet, and we have a new Congress,  we  need to  contact them and get it  removed. OBVIOUSLY.

[greatmidwestcoin]

FYI - it has been in place for months now. Congress will not repeal it. It is the law. Just pay your income taxes. It's that simple. You can thank the big man in DC.

[inhawaii]

Why does it matter if  threshold for getting a 1099K is $6, $60, $600, $6,000, $60,000, $600,000 or $6,000,000?  You are still supposed to report it. 

[buyselljack2016]

Tough on the casual sellers just cleaning out a bit, but long overdue to get after the scofflaws flying under the radar at $19,999.

It is not just a "federal" thing.  Some states had already smartened up and had lower 1099-K issuance limits prior.

The paperwork is a pain, but not all that difficult to zero out the tax for the little casual seller.

[themayqueen]

totally untrue. i f you are just selling off your personal stuff, not for a profit, and aren't  doing this as a business,  then you certainly do not  normally  have to report that on your taxes! that kind of sales , if you DID make money off it, would fall under Capital gain. If you   are only recouping SOME of what you paid for it,  or just breaking even after all your costs, that is NO gain at all. so, not taxable, and until this year, NOT reportable by ebay until you hit $20,000 and 200 sales.

 millions of ebayers are selling thier personal belongings, and just getting back  what they paid, or less. . Not  here as a business.

[greatmidwestcoin]

Please let us all know how contacting Congress and getting this new tax requirement removed goes for you. Much appreciated! 😉

[nuclearomen]

not sure how many times must go through the 1099k threshold - getting so old now. Any income you make is reportable, it's then your job to show you had loss to the IRS when reporting taxes. This isn't rocket science, talk to your accountant about what you need to have for records. 

[buyselljack2016]

NOT reportable by ebay until you hit $20,000 and 200 sales

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Not reportable on a 1099-K by eBay, but still was a requirement to file reporting income

[themayqueen]

 this is about people who aren't making any countable income yet are being reported as if they are.

Selling of f your personal items  for  less than you paid, IS NOT TAXABLE income.

this kind of fallacious excessive 1099 reporting is overkill and a huge bureaucratic mess. And a huge headache for millions of casual sellers just trying to get some money back    out of what they paid  for thier   no longer needed stuff. NO  capital Gain .  NOT taxable  then.

[doc-holmes]

If you think a change in parties controlling Congress means they will now take less from the little guy, you're wrong. Unless you're one of their billionaire buddies (Dem or Republican) they don't care about you at all. Plus, as you have been told many times, there have been zero changes to the reporting rules. They've just made it harder to cheat. 

[greatmidwestcoin]

A suggestion. Try using the free app WAVE. This tracks all of your income(sales) and expenses automatically from eBay. It's relatively easy to set up with a checking account, which you had to provide eBay for Managed Payment migration. I have been using it for some time now. It is a little overwhelming at first but their support is great. You end up only using about 5% of its functions. After you get used to it, it becomes very easy to check transactions. You can modify, add or delete transactions if they were not transferred from eBay or your bank account correctly. It also provides profit or loss and tax information/data.  By the looks of your listings, you may not even have to worry about filing.  Good luck.

[inhawaii]

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@themayqueen wrote:

totally untrue. i f you are just selling off your personal stuff, not for a profit, and aren't  doing this as a business,  then you certainly do not  normally  have to report that on your taxes! that kind of sales , if you DID make money off it, would fall under Capital gain. If you   are only recouping SOME of what you paid for it,  or just breaking even after all your costs, that is NO gain at all. so, not taxable, and until this year, NOT reportable by ebay until you hit $20,000 and 200 sales.

 millions of ebayers are selling thier personal belongings, and just getting back  what they paid, or less. . Not  here as a business.

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So the seller can decide which category they fall under and  if they need to report the income not?

Hmmm. Interesting. 

Just curious.  How about sellers who are here strictly to MAKE A PROFIT but make less than $600, are they not required to report their $599 in earnings?

[nuclearomen]

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@themayqueen wrote:

totally untrue. i f you are just selling off your personal stuff, not for a profit, and aren't  doing this as a business,  then you certainly do not  normally  have to report that on your taxes! that kind of sales , if you DID make money off it, would fall under Capital gain. If you   are only recouping SOME of what you paid for it,  or just breaking even after all your costs, that is NO gain at all. so, not taxable, and until this year, NOT reportable by ebay until you hit $20,000 and 200 sales.

 millions of ebayers are selling thier personal belongings, and just getting back  what they paid, or less. . Not  here as a business.

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you are correct, it was not reportable by ebay, but it was reportable for you. Key word is Reportable, i have feeling your confusing Reportable with the word Taxable, there is difference. You must report all income, not all that income is taxable. Any money you made on personal items you sold is Reportable, but if you lost money on those items and can prove it then it's not Taxable and that lesser earning is Deductible and not Taxed. You do not have to be here as a business, many sellers aren't, but still required to report all earnings in the taxable year to the IRS. The $600 1099-K threshold is the law that ebay and every other marketplace online has to abide by by law, they are reporting to the irs how much money you made on their platform, but the irs is also looking to match that with what YOU file...remember that, audits are real.