ebay 1099 statements are coming

[PLY474]

I just found out and I'm just passing the information since many of us buy & sell parts on ebay.  It'll be hard not to get political with this one. 

The IRS Is Cracking Down on Small-Time eBay and Etsy Sellers
https://money.com/tax-1099-k-600-ebay-etsy/

Starting next year, if you sell a bike or an old camera on eBay, the tax man wants to know.

Beginning in January 2022, anyone who sells more than $600 worth of goods through on the online auction site or rivals like Etsy or Facebook Marketplace will receive a 1099-K form, detailing the transactions for the IRS. For now, only sellers who move $20,000 worth of goods and complete at least 200 transactions have their activity automatically reported.

The new rules, part of the American Rescue Plan Act of 2021, apply to anyone who receives payments for goods or services that are processed by third-party payment networks, like PayPal or Venmo.

The news of the change has stirred up a lot of confusion and worry as it has rippled through online selling communities, with some people threatening to quit selling altogether. "I don't know why it's caused so much anxiety," says tax attorney Barbara Weltman. "There's nothing to change in terms of your selling activity."

Rather, the onus for reporting this income will now fall on payment processors, and these companies will need to issue a 1099-K form to anyone who meets that $600 threshold in 2022, Weltman notes. And the reality is that taxpayers were always required to report this income — and pay federal income tax on it — even in absence of a form, she adds. "For people who are doing the right thing, it makes no difference."

[Filthy Filbert]

Yup.   I just learned this the other day.   Anyone who accepts payment via PayPal, Venmo, etc. that's anything other than "gift to friends/family" will be receiving a tax bill from the IRS

[Filthy Filbert]

Seems they immediately changed their mind based on the outrage of taxing anything over $600 on a cash app transaction...


https://www.reuters.com/world/us/us-treasurys-yellen-says-democrats-propose-10000-irs-bank-reporting-threshold-2021-10-19/

[JH27N0B]

Seems they immediately changed their mind based on the outrage of taxing anything over $600 on a cash app transaction...


https://www.reuters.com/world/us/us-treasurys-yellen-says-democrats-propose-10000-irs-bank-reporting-threshold-2021-10-19/

That's a different reporting issue. That proposal was for the IRS to require if there is any more than $600 in transactions in your bank account, the bank would be required to report this to them. Basically the IRS would be monitoring almost everyone's bank and checking accounts. I believe that got shot down due to all the pushback.
The requirements for services like PayPal and Venmo to send out 1099Ks for over $600 in transactions in a year is different and still in place.

[Filthy Filbert]

I read it as the same, since bank accounts are typically linked to said cash apps.  Cash apps like paypal are essentially bank accounts, linked to other bank accounts.   I have $150 sitting in my paypal account right now from a buddy who sent it to me a couple weeks ago--making my paypal account an online bank.

[Jay Bee]

I hope this doesn't hit Canada, but it's probably only a matter of time.

[ledphoot]

When the government goes on a money printing rampage they are going to have to get the interest on the debt they created from someplace....

Better start keeping track of what you paid for everything you are selling on various platforms because you will be held liable for the full sale price of the items if you have not kept track of the initial cost of the item.

[JH27N0B]

I unexpectedly got a 1099-K from PayPal last January for around $2000 in PayPal payments I'd received in 2020.
I didn't know what to do with it, some of it was extra parts I'd sold online. Some was even reimbursements from a friend who'd messed up sending me money and not clicked the friends and family option, and I hadn't been checking the emails closely and hadn't noticed.
All I could do is guess at things when I did my taxes, I said 3 or 4 hundred was income and the TurboTax advisor said that was ok and not to worry.  But I vowed not to take any PayPal payments again unless it was friends and family.
I've sold a few parts this year and buyers were ok using friends and family.
I also loaded up my truck and set up to sell at a swap meet one day last June, first time I've done that in years.
It's really a shame, I used to sell a lot of my old clutter on eBay, but that site got so expensive and bad for sellers I stopped 3 or 4 years ago.  Now it's getting so burdensome between taxes and shipping issues that selling anything online may not be worth it.
Back to swap meets and garage sales to buy and sell I guess.

[Filthy Filbert]

I unexpectedly got a 1099-K from PayPal last January for around $2000 in PayPal payments I'd received in 2020.
I didn't know what to do with it, some of it was extra parts I'd sold online. Some was even reimbursements from a friend who'd messed up sending me money and not clicked the friends and family option, and I hadn't been checking the emails closely and hadn't noticed.
All I could do is guess at things when I did my taxes, I said 3 or 4 hundred was income and the TurboTax advisor said that was ok and not to worry.  But I vowed not to take any PayPal payments again unless it was friends and family.
I've sold a few parts this year and buyers were ok using friends and family.
I also loaded up my truck and set up to sell at a swap meet one day last June, first time I've done that in years.
It's really a shame, I used to sell a lot of my old clutter on eBay, but that site got so expensive and bad for sellers I stopped 3 or 4 years ago.  Now it's getting so burdensome between taxes and shipping issues that selling anything online may not be worth it.
Back to swap meets and garage sales to buy and sell I guess.

I would have said "I play a lot of golf with my buddies.  They send me paypal money, and I pay greens fees for the group.  None of it was income"

It's getting ridiculous with the taxing.    Got a job? pay taxes on what you earn.  Buy something with the money that's left over? pay sales tax.  Need gas?  Pay taxes on the gas.  Got property that you've paid off? sorry, keep paying taxes on it.  Sell the item that was taxed when you bought it, with money that was already taxed? Pay taxes on what little you got back from the sale...

ugh

Taxation is theft.

[JH27N0B]

When I bought my '71 Challenger 10 years ago, the state of Illinois charged me over $4000 tax...which is in the neighborhood of what it cost new!
Seriously, you clean out the garage and sell some parts gathering dust on the shelves.  You sell a carburetor for $100 online.  You have no documentation as to what you paid for it, so now that $100 is all profit you must pay tax on?
You sell a toy car you got as a kid for $20, that's $20 taxable income?
If that's the case, I'll just hang on to all my old stuff that is cluttering up my house that I have no use for, as the government has made it too much of a hassle to sell to someone who can use it.

[torredcuda]

I stopped selling on e-bay years ago when they hiked thier fees so no worries there but I have been selling on FB Marketplace and use PayPal so I`ll have to keep it under $600 or make sure I have reciepts for purchasing items I`m selling. Friends and Family doesn`t give buyers any protection so most don`t want to use it (myself included) unless they know and trust the seller, that will make it a lot tougher to sell items online. I`m not surprised this is happening as taxing online sales like e-bay has been talked about for a while now, the tax man needs more of our money to pay for the trillions more the government is spending while putting our kids in more debt.

[HP_Cuda]

Good grief - this is getting out of control.

Guess someone has to pay the piper when it comes to an out of control printing press.

One thing is for sure, this will not end well.....

[dodj]

The new rules, part of the American Rescue Plan Act of 2021

You're being rescued?...lol

Can't remember the gov't doing anything to me that felt like a 'rescue'.

[anlauto]

Wait a minute....ALL those people sitting at home collecting Government assistance because they feel unsafe at work due to Covid, now have to claim all the stuff they're selling on eBay too ?

[CNUMB]

Wait a minute....ALL those people sitting at home collecting Government assistance because they feel unsafe at work due to Covid, now have to claim all the stuff they're selling on eBay too ?

Yes, and will probably get hit with a tax bill for all that "free crap"..
This government needs to re look at all the FREE benefits given to those in the white house..
This Country is going down the tubes..