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Ebay/Paypal users beware! -1099k form- The taxman cometh!

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  • #1

    Ebay/Paypal users beware! -1099k form- The taxman cometh!

    New legislation (the American Rescue Plan) changes the "reporting thresholds" for users of 3rd party
    processing companies like Paypal, Square, Venmo etc. Beginning Jan 1 2022, they will be required to
    send a 1099K form annually to the IRS (& you) for any activity for the year over $600, & must be
    reported as income on your 2022 taxes. The former annual threshold was $20,000.

    Any sales of goods or services that you received money for, will be on that 1099K.

    See the article here:
    https://www.cnbc.com/2021/03/26/its-...ine-sales.html

    Last edited by Carl_B; 10-08-2021, 07:12 AM.
    Carl
    Tags: None
  • #2
    I've been having to write 1099 forms for unincorporated contractors for almost a decade. But meanwhile all kinds of fun and games continue with offshore corporations and South Dakota trusts. It's clear who's guiding the rule-making process.
    James

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    • #3
      Once this whole political thing blows over, the storm, we won't need to worry about the IRS or the Federal Reserve. They will be history. Just lay low till the storm is over.

      Bernd
      New York, Vermont & Northern Rwy. - Route of the Black Diamonds

      Main thread to all that's happening on the NY,V & N Rwy. The New York, Vermont -and- Northern Rwy. - Railroad Line Forums (railroad-line.com)

      New York, Vermont -and- Northern Rwy HOn30 Quarry Line https://railroad-line.com/node/31167

      Comment

      • #4
        Fire one!
        Karl Scribner-Curmudgeon

        Cedar Swamp
        SW of Manistique, MI

        Avatar image by Savannah Lyn Burgess 7-15-2022

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        • #5
          i have been getting 1099s for playing in crappy bars for years... lol
          • 1 like

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          • Philip
            #5.1
            Philip commented
            10-08-2021, 11:24 AM
            Editing a comment
            tax that tip jar....
        • #6
          Actually, not all that new; the tax man arrived quite a while ago - depending on what state you reside, that state may already have been requiring 1099ks to be sent to their residents to capture the state income tax. That fun actually started 2-3 years ago. I fully expect all states to be following up on that.....and then that goes w/o saying at the Fed level.

          I tried to explain this to folks last year and got nothing but told I was an feckin' idiot and had no idea what I was talking about..........and then they got a 1099k in the mail. Makes my accountant just a bundle of cheer, too.
          In a time like ours seemings and portents signify. Ours is a generation when dogs howl and the skin crawls on the skull with its beast's foreboding.

          Comment

          • #7
            Interesting responses.

            Martin- I was aware some states already started their own measures. As you stated, when one gets a surprise 1099k in the mail, you'll have some fun.

            The difficult issue here is with the private individuals trying to make a few dollars on Ebay/Etsy, a $20,000 ceiling being reduced to $600....and then dealing with the IRS about it....
            Carl

            Comment

            • mwbpequod
              #7.1
              mwbpequod commented
              10-08-2021, 06:16 PM
              Editing a comment
              Some are completely unaware and in denial of reality. Well, I got my 1099k last year and I was nowhere near $20k. The threshold depending on your state could have been a lot lower already.

              Yeah, make a few bucks.....flying under the radar is going away. Folks selling a lot are going to be in for a real shock when they end up being a business and end up owning a far more complicated existence. The harsh reality is that it is income; can't wait to see the taxman at trains shows asking about whether you're collecting the state sales tax......
          • #8
            Originally posted by Craig_H
            Bernd, I'm right along with you when the Storm is over we will see a big Change
            Ah I see another person in the know. Good.

            Bernd
            New York, Vermont & Northern Rwy. - Route of the Black Diamonds

            Main thread to all that's happening on the NY,V & N Rwy. The New York, Vermont -and- Northern Rwy. - Railroad Line Forums (railroad-line.com)

            New York, Vermont -and- Northern Rwy HOn30 Quarry Line https://railroad-line.com/node/31167

            Comment

            • #9
              I couldn't let this sleeping dog lie.....

              You go to the store and buy something. You are charged State Sales Tax. After you use the item, it probably dropped in value and you decide to put it on eBay. eBay takes their 'cut' of at least 10% and they'll also grab 10% of the shipping cost YOU charge, and the buyer their State Sales tax (on the before 'their cut' sell price) on that "used item". Then they send you a 1099 to inform the IRS of your Federal tax to be paid. Congratulations, the once purchased item has been taxed 3 times by multiple States and Federal agencies, insuring the well run government which we enjoy.

              Use Craigslist and take your chances.

              Jim
              Take the red pill

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              • #10
                Stap in boyz,
                Everyone is right and everyone is wrong. No matter what, this country has changed already and most of us were busy (asleep). Moving forward this country (this world) will NEVER be the same because the criminals are vast and now have taken a couple of big bites of how to control the world and have a never releasing taste for it.

                Even if our generation can hold off the corruption, it's only for a decade if lucky. Our mindless gullible offspring will insist on letting them back in control again not knowing the real truth.

                How do I know? What is the first thing a person does when told-No/Don't? Need I say more???

                Don't mind me, I'm just pissed I paid full price for all my trains and don't have anyone to buy my shhhhtuff for a fair profit.
                Thanx Thom...

                Comment

                • #11
                  Massachusetts has been requiring sales tax numbers for vendors at train shows for at least 10 years, probably 20 (I wasn't involved in show management in the oughts).
                  James

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                  • #12
                    There's a new short tax form for New York State this year.

                    1) How much did you make?
                    2) Send it in.
                    Home of the HOn3 North Coast Railroad, along the shores of Lake Ontario.
                    • 1 like

                    Comment

                    • OBTC1909
                      #12.1
                      OBTC1909 commented
                      12-29-2021, 06:31 AM
                      Editing a comment
                      They use the same one here in Illinois but with an added form that says send in everything you made for the last few years.
                  • #13
                    Has anyone seen the new income tax forms for 2021? The IRS wants to know if you have any stolen property, what's its worth. And they want to know if stolen items are still retained by you, what is their worth and if not, how much they were worth when you sold them. And you must tell them on the new form.
                    Also, if you have sold any illegal drugs, what amounts you received from those sales?

                    I wonder how many people will report these items???

                    Comment

                    • #14
                      A fine bunch of bureaucratic idiots, working (scamming) for us. Drain the swamp!





                      Take the red pill

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                      • #15
                        https://www.nbcnews.com/news/venmo-p...-irs-rcna11260
                        Carl

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