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No this is preferable. I waited for months for a 1099 from a client that never arrived last year. My accountant finally clued me in that invoices totaling under $600 a year don't generate a 1099 so you have to report it manually for lack of a better word. Pain in the ass if you work a little for lots of clients.
you mean, if a gig economy vendor chose to charge exactly $599 per job, or not more than $599/client, depending which is accurate?
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 37,105,621 times
Reputation: 40635
Quote:
Originally Posted by BoBromhal
Imagine you're a wage-earner (not salaried) that suddenly finds you need to sell your nice washer/dryer set you bought in 2019 because you need the $$ for the grocery store, and will just use the local laundromat until times get better.
And that $2K w/d sells for $800. Uncle Joe and the Dems want you to pay income tax on that.
No you wouldn't, because its easy to show you paid more for it.
I dabble in discogs / ebay from time to time. More than $600 a year. I won't be paying taxes as I can easily show that I spent more on film, or records, or whatever than I sold. People are making way too big a deal out of this.
No you wouldn't, because its easy to show you paid more for it.
I dabble in discogs / ebay from time to time. More than $600 a year. I won't be paying taxes as I can easily show that I spent more on film, or records, or whatever than I sold. People are making way too big a deal out of this.
Yes and No
There will be more cash transactions. There are so many places that are cash only now and I don't blame them. There are 20 or more shops and eateries in Pacific Beach now cash only.
I don't have receipts from vinyl albums I purchased in the 80s so how do I even put a transaction amount of money made. Does this count inflation? I mean, a dollar in the 80s ain't all that now.
And what you will get is more red tape to fill out. What do you want to bet they will make it such a pain in the ass to get out of it that you'll just want to leave it reported as income?
It hasn't taken me more than 15 minutes to do taxes in over 20 years. Taxes are not complicated. My guess is there will be lines to report the total,, subtract the non-taxable, then the net.
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 37,105,621 times
Reputation: 40635
Quote:
Originally Posted by 1AngryTaxPayer
Yes and No
There will be more cash transactions. There are so many places that are cash only now and I don't blame them. There are 20 or more shops and eateries in Pacific Beach now cash only.
I don't have receipts from vinyl albums I purchased in the 80s so how do I even put a transaction amount of money made. Does this count inflation? I mean, a dollar in the 80s ain't all that now.
You don't need receipts from the specific albums, I just have to show spending on the same thing, records. Easy enough to do. If I don't buy records (I do), I can show their current average sale price (also easy enough to get) and use that as the basis. I know dozens of people doing this for years. Some audited, and it works just fine.
I dont think online sales which is usually what PayPal is for will switch to cash.
I have no idea how they will work this out. For example, I do freelance work through a third party platform and I do a Schedule C to report that; the platform does not do anything but take a fee for connecting buyer and seller. I do pull my money out through PayPal bc it’s faster and cheaper than the direct deposit option. I also have direct clients I invoice through PayPal and I do pay a PayPal fee on that. I normally would just report all of this on my Schedule C, but if PayPal has to send me something for some of these things and not all, that makes my bookkeeping more complicated.
Likewise, we have a personal loan through a friend and we pay her back through Zelle each month. She’s not making any interest on us, and those payments shouldn’t be considered income for her.
This is just another example of Big Daddy Govt thinking it knows best and trying to get a piece of everyone’s pie, rightly or not.
The payments to your friend are not income to her. She should be reporting imputed interest income, though. The IRS isn't stupid, there will be a way to separate the 1099 amounts into the appropriate categories.
I'll give you the straight info on this because in the last month I have been selling on ebay my old playstation and nintendo games...
I was trying to stay under $600 for the year but my last game went into a bid war and it brought me over $600 for the year. Immediately (minutes after the listing ended) ebay sent me a message and told me my funds are on hold until I provided them my social security number so they can send me a 1099 and report it to the IRS.
The total sales was $633 but after ebay fees my net was $544 so they based me on this on before ebay took their fee not what I actually walked away with. I don't have the receipts for these games that I bought in the 90's so now that $633 is taxable income.
So back in the day I paid income tax by working to buy the games, twenty five years latter I am getting taxed on them again.
Democrats better never ever say with a straight face ever again that they are "for the little guy" and they "only want to tax the ultra rich". They are blood sucking so they can pay illegal immigrants free everything and send billions of unaccounted money to Ukraine while coming after us if we unload our old somethings on ebay.
Whether or not you have receipts is irrelevant. The IRS is not going to audit you and demand you show receipts for items you bought 20 years ago.
The IRS audits less than 0.5% of taxpayers who aren't receiving the EITC or have income over a million dollars. This new reporting requirement isn't going to change that.
Imagine you're a wage-earner (not salaried) that suddenly finds you need to sell your nice washer/dryer set you bought in 2019 because you need the $$ for the grocery store, and will just use the local laundromat until times get better.
And that $2K w/d sells for $800. Uncle Joe and the Dems want you to pay income tax on that.
What makes you think they want you to pay tax on selling your old appliance? They don't.
a few hours ago, it was SINGLE transactions of $600+. Is it single or total annual?
What happens to the teenage babysitter who gets $100 once a month for babysitting the neighborhood kids for date night?
What about the backyard henhouse-owning climate savers, raising their own food and happen to sell more than $600 total in a year, far less than their cost of getting to "harvest"?
The teen isn't going to meet the income threshold for paying taxes. The people selling their extra produce and such aren't making a profit, which is simple to prove.
The 1099 threshold is $600 per year. If you have 50 $13 transactions through PayPal, you will get a 1099.
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