I received an e-mail from Reverb yesterday (for those not familiar, it's a basically a marketplace for musicians akin to eBay but limited to instruments and related hardware). It was informing me that the new federal $600 tax reporting threshold has been delayed at least one year, so sellers will only receive a 1099-K if they exceeded the previous threshold of $20,000 and 200 transactions. The same should apply for eBay, Etsy, etc. Definitely good news for any smalltime sellers.
Indeed, good news. Unfortunately, doesn't affect Paypal now wanting state tax id for anyone with more than $600 in Payments. Friends&Family, the only way to go!
Profiterole = "small profit". The pastry was given that name due to its size and yumminess, a simple French play on words.
Wait wait wait… am I reading this wrong? The threshold used to be $20,000 and it’s going to be $600?! Whose idea was that?
Delusional fat-cat fucks who it won't affect! We're having the same shit with our National Health Service being strangled by the same fat-cat fucks who all have primo private healthcare plans, the National Rail Network being screwed over by c*nts that get driven everywhere in Range Rovers (funded by my taxes) and an underfunded Education System having the purse strings yanked by wankers that all went to 'Old Boy Network' Public schools at £64k a year! Come the revolution! . . .
It affects Paypal, they started asking for tax id last year after $600 in sales. Good to remind buyers, if selling anything here, Friends&Family only. Payments over $600, single or cumulative, can get the account locked down until you hook up a tax id.
Hmm, I just got a 1099-k from eBay and had a little under 4K in sales. So it definitely isn’t applying to ebay. It’s great news, bury the IRS staff in millions upon millions of tiny e market tax reports. They’ll be so overworked you probably don’t even need to pay taxes anymore. They’ll never get around to you. Can’t wait to write it all off.
Yeah, I got one from eBay too ($2200 if we're comparing). I think they sent them out just in case. A friend of mine in Massachusetts says he's been getting them for years because they have to pay state tax on any earnings over $600.
So now it will be f&f payment or add 4% paypal fee plus 9.75% CA sales tax...you do the math and if it's not right I'm not sending your toys.
ebay sent them out late last year, then a notice saying to ignore them for 2022 sales because https://www.ebay.com/sellercenter/resources/2022-changes-to-ebay-and-your-1099-k On December 23, 2022, the IRS issued Notice 2023-10 providing a one year delay of the $600 reporting threshold. Starting on January 1, 2023, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers whose sales exceed $600. The new tax reporting requirement will impact your 2023 sales, it will not apply to your 2022 sales. If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales.
this is an aspect I don’t quite understand- with a $600 threshold, they are effectively introducing hundreds of millions of new documents into tax filings that are will need to be handled by an already understaffed IRS force. Hundreds of millions more chances for incorrect filings, errors (on both sides of the coin) all of which will result in more delays on tax returns. Not to mention all the good will it’s going to garner from the average Joe who was just trying to sell some old collectibles online to make a little extra cash. And I get it that individually each little bit of extra the irs can squeeze out of the folks that just break that $600 threshold will add up and that really all they care about, but damn it almost seems like it’s not worth the trouble and the irs wasn’t prepared for how much additional work will be involved to bleed people for even more…
Yeah I looked into NJ, like Roger says, looks like NJ has their own $1000 level. So check your individual states.
Correct me if wrong, doesn't that $1000 level in NJ pertain to your state sales tax, though, and the 1099-k is federal income tax, not the same?
Not necessary in relation to this topic. 1099-km only governs IRS federal tax, not NJ taxes. https://www.irs.gov/businesses/understanding-your-form-1099-k
F&F is not so good for the buyer. Just have to add that in. Also, I used to hear that people were getting into trouble with Paypal by doing a lot of F&F payments. Not sure if that is still going on.
There is no potential NJ issue with the 1099-k filing. That is a federal tax filing issue, not a state sales/income tax issue. The NJ thing is a seperate issue, and it may affect your paypal payments but is not a matter of concern re the 1099-k filing. F&F is only bad for the buyer if the seller is a sketch monster. An inherent matter of trust involved; seems to rarely be an issue among Skullbrain members using that method. The only reason Paypal will bother re F&F payments is if their spiders detect something in the messages that cues a 'real' employee taking a look at the Paypal-er's transaction history.
