I believe this is $600 total for the year, not just transactions that each total $600 or more?
Paypal Changes for 2022
If I understand this correctly, Paypal, along with all on-line payment sources like Venmo, etc. will now be sending out 1099 forms for all payments totaling $600 you receive in 2022 for goods or services. The only way around this is to use Paypal friends and family for payment which eliminates any buyer protections. Is everyone aware of this?
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If you own your own business or have a side hustle and get paid through digital apps like PayPal, Zelle, Cash App or Venmo, earnings over $600 will now be reported to the IRS. A provision from the 2021 American Rescue Plan, which went into effect on Jan. 1, directs third-party payment processors to report transactions received for goods or services totaling over $600 per year to the IRS. Prior to this legislation, a third-party payment platform would only report to the tax agency if a user had more than 200 commercial transactions and made more than $20,000 in payments over the course of a year. The key thing to know right now is that it doesn't apply to your 2021 tax return, which you'll file this tax season. But it will apply to the earnings you make throughout 2022, which you'll report when you file in 2023. |
Some of us unfortunate to live in a few select states were already subject to the dreaded PayPal 1099-k tax forms: HERE Copy / paste: Several states have already closed this reporting loophole on the state level:
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It's not crazies @thyname , it's people pointing out the obvious. It isn't enough that you pay not only income tax, property tax, sales tax, gas tax. tons of hidden taxes, death tax. That isn't enough to satisfy the all consuming behemoth of government. Banking institutions are warning their clients the Biden admin is intent on having them report any transaction over $600.This will force them to hire more people and it will enlarge another Federal bureaucracy. The current reporting amount is 10k and it was instituted to help curb organized crime. The people who will be hurt most as always are the poor who will have a harder time making itemized deductions and end up just handing over more and more of their money. |
I had to deal with PayPal reporting for all these years Trump was in power. And those “territories” I outlined above are mostly run from Republican governors. Mississippi, Arkansas, Missouri, Maryland, and now Virginia. Unless the crazies meant leaving US when saying “territories”. If so, where would you go? Canada? Europe? Or North Korea? And the new rules were set while Trump was in power. So much for draining the swamp. Nothing really happened in those four years. |
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’Gon would have to be one of the most heavily politicised platforms on the planet, while also seeming to possess a seductive allure that attracts nutjobs like moths to a flickering flame. The outcome - threads resembling trench warfare. Why this is so has great research potential for many a doctoral thesis.. |
This is because of a deal that Sleepy Joe engineered early last year. 2021 was the last chance to sell. your old stuff. I did. The worst aspect is that you get to pay tax on the inflation the politicians created. Sell something for $200 that cost $50 (with receipt) in 1980. IRS treats it as gain even though it’s treading water. Back to the black market and barter economy. The only result will be fake bills of sale de facto. Lotso luck not paying tax on gains because of amateur status. Leave PayPal out of this PITA of them too.
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My fifth-grade (1959-60) teacher use to proclaim a loaf of bread had 39 taxes hidden in each loaf. Now it is up to 151 hidden taxes in same loaf of bread. My favorite tax saying is from the 1800’s ’Don’ tax me, don’t tax thee, tax the man hiding behind the tree.’ No one, that I know, of enjoys paying tax. It takes both houses of congress to pass new tax laws, after they make sure the maximum deductions apply to them. Kind of like the weather, complain all you want, but seek some shelter. Taxes are neither red nor blue, they are red, white, and blue. White socks, red necks, and blue-ribbon beer made this country great. |
Another Mensa candidate. |
That is a political ploy to squeeze you on everything , UPS just pulled another one. I asked for insurances on the Duelund Loudspeaker purifiers I sell and they asked me how well they are packed, they said we Donot cover for damage just for theft or loss ,what kind of BS is that , what if I am selling a $5k amplifier and they damage it ,tough luck I think I Better see if FedEx too may now hav3 the same policy this is getting crazy and over $1 per hundred , you need to buy from a outside insurance company I think I read FedEx too is pulling this crap, Ask first !! |
I think what UPS and FedEx are really saying about damage is that they don't insure against damage of the contents unless the packaging is damaged enough to damage the contents. They don't know how the shipper has packed things, and they aren't willing to get into an (irresolvable) dispute about the adequacy of packaging for the item shipped, so they won't insure against damage of contents unless you pay them to package it. |
Re the Form 1099 reporting to the IRS, some concepts above are being mixed together. The amount on the Form is not "income", it's only the total "gross proceeds from the sale(s)". To determine income (actually "gain"), you subtract your cost of the item. It's a lot like selling a share of stock or your house, the broker or escrow that closes the transaction reports to the IRS the gross proceeds from the transaction. It's then up to the taxpayer to report (generally on Schedule D, Capital Gains and Losses) both the proceeds and the cost of the asset sold, with only the excess of proceeds over cost being gain (income). So yes, you generally need to keep evidence of what you pay for items you sell. If you are not in the "business" of selling (a muddy concept beyond what I can detail here), gains are taxable and losses are not deductible, but you may be able to offset losses against your gains ("see your tax advisor"). If you are in the "business" (probably rare for A-Gon), you get taxed on gains and deduct losses, and may be able to deduct losses against other income ("see your tax advisor"). Again, it's similar to selling stock through a broker or your house where an escrow agent closes the sale by processing payments and documents, and then reports gross proceeds to the IRS, and you have to figure out the gain, if any. Hope this helps. |
Again, I think that those of us who may multiple times a year or maybe one to two times per month sell gear, may now have been put into the audio “business” by the IRS. If they want to play it that way, then I can deduct my expenses involved in this business. These are the unintended consequences of over regulation. |
Brainwashed Infowars tools. How did they get into audio?
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Yes they will report and send you a 1099k but for personal items you most likely bought it for a similar price or maybe even more so no gain, no tax. Notice how Amazon and Ebay now charge the buyer sales tax? This was not the case before but stems from the Wayfair vs south Dakota ruling in 2018. For sites that do not collect sales tax I imagine states could use this form to collect thier share. AND you will pay sales tax always but only the buyer pays. That's where this new ruling will get it's money.
Imagine paying 8% more for everything you buy on Agon? |
It seems like this is to help get a little more revenue from cottage type businesses, but will be another way the IRS can flag any one of us. This is just a quick search of the taxes we already pay...
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@taxguy I heard about this tax change on YouTube and immediately thought of a couple points:
My question to you... If audio gear (or anything else we sell) generates one of these 1099’s, does depreciation need to be factored in? That could significantly reduce/eliminate the value of the original cost - resulting in the entire transaction being taxable gain. Example: In 2016, I buy a new amp for $3000. Depreciation schedule for electronics is short (think maybe only a couple years), so in 2022, that item is likely fully depreciated. I sell it in 2022 for $4000 (due to it’s popularity and inflation). Can the gain be offset by the original cost in this case?
@nonoise Americans are always on the lookout for government tyranny, because patriots and government are usually at odds with each other. Governments endeavour to control, while patriots endeavour toward freedom. Example: The 2nd US constitutional amendment provides the right to be free of governmental infringement to maintaining a weaponized civilian militia specifically for the purpose of defending against tyrannical government. US founding fathers had the foresight to prepare for this by making it the 2nd amendment (just after free speach) - that’s how important it is. |
@nonoise it is not unpatriotic to try to avoid paying what you can. I suggest everyone who thinks otherwise to pay more than you should. They will allow you to do that if you feel so strongly. We have roughly half the nation that pays nothing into income taxes while at the same time chanting for the rich to pay "their fair share". It has gotten so absurd that people who pay no income tax are receiving money from other taxpayers for their decision to have a child. People chanting fair share that don't realize the top 1% account for 70% of the monies paid into federal treasury. For some reason a political segment believes there is a limited amount of money and if that rich arsehole weren't so selfish I'd be rich too. It doesn't work that way. Our federal government is bloated and it's tax laws are what allows it to be bloated. If you don't believe me look at maps by county + wealth over the last 6 decades. That wealth was distributed across the nation. Today the richest counties are congregating around DC. I don't have a problem paying taxes; I have a problem paying for mass bureaucracy and other people's decisions in life. If you choose to have a kid, great! I don't want to pay for that choice. |