kritter
Mod Squad
When we lose sight of how we treat animals, we tend to lose sight of our humanity
Posts: 19,902 
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Post by kritter on Dec 23, 2022 19:26:12 GMT
Most of the article is not available unless you subscribe to the WSJ. The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBay, Etsy and Airbnb to give the tax agency information on users with more than $600 in revenue.
The delay means the platforms won’t have to send sellers and the IRS a blizzard of 1099-K tax forms early in 2023.www.wsj.com/articles/irs-delays-gig-tax-filing-rule-for-side-hustles-of-more-than-600-11671815725?mod=hp_lead_pos4 |
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Post by labbypaws on Dec 23, 2022 23:01:57 GMT
Great news!
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val2525
Chaos Manager
Posts: 30,791
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Post by val2525 on Dec 24, 2022 2:10:41 GMT
Oh good, another year for some online sellers to once again not report their income.
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Post by labbypaws on Dec 24, 2022 15:07:26 GMT
Most people don’t understand it. Then the news doesn’t explain it right. I try to explain that they can deduct expenses. They need to thoroughly explain to the “Selling personal property sellers” what it means.
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val2525
Chaos Manager
Posts: 30,791
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Post by val2525 on Dec 24, 2022 15:48:29 GMT
Sellers just selling random personal stuff to get rid of it can always deduct expenses to come out to $0. It's the sellers who make a lot more than $600 but fall just under the limit to have a 1099-K generated and don't report that income are the ones who annoy me. But hey, it's not my problem. I am surprised at people who are dumb enough to not report income that can be electronically tracked. *SMH* on that one.
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Post by chapeaunoir on Dec 24, 2022 20:13:59 GMT
One dude started a thread all about how he's mad because he didn't sell all year so he wouldn't have to report taxes, so he's blaming the IRS for not selling all year. He says is he supposed to try selling for the last part of the year to 'get in on this deal'?
Also the usual sobbing and whining about 'tyranny' - apparently those who are paying their taxes like normal Americans are bending the knee to tyranny.
I got kicked off the boards for a day for a gentle joke I made about Khoros moderation - I should have stayed off - it's like being caught in The Dumbening.
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Post by somany on Dec 25, 2022 5:03:58 GMT
I want mine! It took a lot of effort last year to figure out how much I grossed. I just signed up for My Reseller Genie, and it will give me the sales for ebay for the year so I will be alright even if I don't get it, but it was always a lot easier just having the number given to me.
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Post by chapeaunoir on Dec 25, 2022 7:29:15 GMT
Having those 1099-K forms made reconciling really easy, a nice bit of documentation to submit for taxes.
The people on that forum - they need to realise that they need to grow up and start being adults about making thousands selling on an international platform. It's like they think they're still doing yard sales.
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Post by Pantlandia on Dec 25, 2022 8:44:31 GMT
I think $600 is too low and $20k was too high.
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Post by labbypaws on Dec 25, 2022 13:29:46 GMT
I think I sold one ornament this year. $50. A few small things locally on the Marketplace.
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val2525
Chaos Manager
Posts: 30,791
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Post by val2525 on Dec 25, 2022 19:08:45 GMT
I think $600 is too low and $20k was too high. The $600 was so the 1099-K requirements would match the requirement for issuance of the other types of 1099. As someone who processes a lot of 1099s in an office that processes a lot of 1099s, the $600 minimum is not bad. It cuts out a lot of the small vendor payments since many are under $600 for the year (for our clients anyway). That saves us and the clients a lot of time and work. TBH, $599 or less in extra income isn't really going to make a big difference in someone's taxes. I think the problem with the current 1099-K is the "$20,000 AND 200 transactions" threshhold. It should be " OR", not "and" IMO. That would catch a lot of sellers who sell 200+ low priced items anually but don't quite hit the $20,000 mark. Personally, I think the IRS should change the minumum amount for a 1099 to $1,000 and extend it across all types of 1099s. That would keep sellers just getting rid of stuff in the house from getting one, and it would pick up a LOT of sellers, vendors etc who are currently escaping being reported. The IRS would get more taxable income at $1000 IMO. |
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Post by Pantlandia on Dec 26, 2022 9:07:22 GMT
I think $600 is too low and $20k was too high. The $600 was so the 1099-K requirements would match the requirement for issuance of the other types of 1099. As someone who processes a lot of 1099s in an office that processes a lot of 1099s, the $600 minimum is not bad. It cuts out a lot of the small vendor payments since many are under $600 for the year (for our clients anyway). That saves us and the clients a lot of time and work. TBH, $599 or less in extra income isn't really going to make a big difference in someone's taxes. I think the problem with the current 1099-K is the "$20,000 AND 200 transactions" threshhold. It should be " OR", not "and" IMO. That would catch a lot of sellers who sell 200+ low priced items anually but don't quite hit the $20,000 mark. Personally, I think the IRS should change the minumum amount for a 1099 to $1,000 and extend it across all types of 1099s. That would keep sellers just getting rid of stuff in the house from getting one, and it would pick up a LOT of sellers, vendors etc who are currently escaping being reported. The IRS would get more taxable income at $1000 IMO. I know the reasoning behind that amount, it's the execution that's bad. I guarantee I have sent $600.00 to both of my oldest sons via Venmo, for things like gas and groceries, etc. Because of that, Venmo is now obligated to send a 1099. They cannot determine the difference between income and a gift, only that a certain amount was received. My sons, who do absolutely no online selling, would not even know that a 1099 was being sent and would likely ignore any email or other notification saying it was sent. And, rightly so, as they have no tax liability on what would be considered a gift. Is there an easy way to fix this? Nope. Not as long as actual sellers keep trying to get around paying their share. But I agree that the 'and' should be changed to 'or' and would even drop the 200 down to 120. Oh, well. |
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Post by denise15601 on Dec 29, 2022 2:21:40 GMT
The Facebook eBay groups have been whining about this $600 thing since it was first announced. Amazing how many people are so clueless.
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Post by Dawn R on Dec 29, 2022 13:02:31 GMT
I usually get my info from reports generated in ebay. The 1099 doesn't really help/hinder me with taxes.
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val2525
Chaos Manager
Posts: 30,791
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Post by val2525 on Dec 29, 2022 14:33:42 GMT
I usually get my info from reports generated in ebay. The 1099 doesn't really help/hinder me with taxes. Make sure your total reported gross sales for eBay equals or exceeds the amount reported on the 1099-K. If not, you will eventually get an inquiry letter from the IRS asking for more information. That's actually true for any 1099s, any kind - make sure the reported income on the tax return equals or exceeds the combined amount of all 1099s. |
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Post by denise15601 on Dec 29, 2022 22:27:59 GMT
I usually get my info from reports generated in ebay. The 1099 doesn't really help/hinder me with taxes. Make sure your total reported gross sales for eBay equals or exceeds the amount reported on the 1099-K. If not, you will eventually get an inquiry letter from the IRS asking for more information. That's actually true for any 1099s, any kind - make sure the reported income on the tax return equals or exceeds the combined amount of all 1099s. Why is that? Although mine does, since I report the income for all of my sites, even the ones that don't equal $600. |
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val2525
Chaos Manager
Posts: 30,791
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Post by val2525 on Dec 30, 2022 19:22:45 GMT
While the IRS cannot track everything it SHOULD be tracking, it does have the ability to track reported income on W2s and 1099s back to the income tax return, by SSN.
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Post by denise15601 on Dec 31, 2022 19:31:57 GMT
While the billionaires pay nothing....
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Post by somany on Jan 6, 2023 1:49:20 GMT
I usually get my info from reports generated in ebay. The 1099 doesn't really help/hinder me with taxes. Are you above the amount that you will get a 1099? I was not able to find a year to date report last year that gave me what I needed. For this year, I actually had a report that gave me the entire year (plus previous year info to some degree) for a day. I just happened to see it and downloaded it, and it's a good thing I did because now it's gone. I'm sure it is part of what ebay is doing to meet the 1099 requirement, which of course they don't have to do now so the report won't be available again they get it ready for next year. |
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