USA Only: Read If You’re Selling Online - IRS Law Change Effect 2022

jlnguyen74

Potamotrygon
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Mar 26, 2007
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The COVID relief bill that passed in the US reduced the reporting threshold for the IRS 1099K from $20,000 and 200 transactions per year to $600 per year if you use an electronic payment system like PayPal. Even if you are just keeping and breeding as a hobby SAVE YOUR RECEIPTS so you can offset that 1099K with your expenses.


 

fishhead0103666

Goliath Tigerfish
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May 14, 2018
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Ridiculous, thanks for warning us.
 

ichthyogeek

Plecostomus
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Jan 1, 2015
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....interesting.

So let's see...if I make up to $600, I won't have to file a form/pay taxes on it. If I make anywhere from $600 to $9,875, I'd probably have to pay 10% of gross sales to taxes (so $60-$987.5). At least that's my interpretation.

But didn't you already have to report taxes on any gross sales over $6K/year anyways?
 
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DrownedFishonFire

Peacock Bass
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....interesting.

So let's see...if I make up to $600, I won't have to file a form/pay taxes on it. If I make anywhere from $600 to $9,875, I'd probably have to pay 10% of gross sales to taxes (so $60-$987.5). At least that's my interpretation.

But didn't you already have to report taxes on any gross sales over $6K/year anyways?
Not with ebay. Sellers had flex of up to 20k or around that before ebay reported them to IRS now all platforms probably has to report to IRS about individuals having recieved money ($601) before it was self reporting til 20k something like that. Now its automatic if that makes sense

I predict gambling industry is going to feed into the tax economy as well. Its kind of a brilliant dick move on the politicans to get the stimmy money back quicker than later.
 
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ichthyogeek

Plecostomus
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I think I understand now. At the same time, so are people just unhappy about the whole "now I have to pay taxes on money that I earned" thing? Or is it specifically because they're "going" after the microsellers?
 
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DrownedFishonFire

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Technically people were supposed to report it anyways people are just upset they have to now once it hits that threshold its now traceable. Its not targeting the small guy. Its just a way to make more tax dollars be forced to be held accountable I ichthyogeek

For example in comparison IRL:

Everyone looked the other way at resturants when someone asked for water but got pop instead at the fountain machines. Now its like hey dude. Pay for your share of the pop now. We not looking the other way anymore. It wasnt fair to people paying for the pop the entire time.
 
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phreeflow

Aimara
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Nov 19, 2007
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This makes sense for people who make a living buying wholesale and selling on eBay or making a product and selling on Etsy. However, what about the person who simply sells some old stuff laying around the house...like an old, cracked iPhone. Is that considered taxable income?
 

fishhead0103666

Goliath Tigerfish
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On behalf of all small online sellers as well as those aspiring, may I politely ask, what the hell?
I believe the constitution has a bit that would work quite nicely in this day and age...
 
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