IRS delays federal $600 tax reporting threshold

Discussion in 'Whatever' started by HBCoffin, Jan 13, 2023.

  1. HBCoffin

    HBCoffin Addicted

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    IRS delays federal $600 tax reporting threshold
    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. :D
     
  2. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    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!
     
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  3. we_become_monsters

    we_become_monsters Fresh Meat

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    IRS delays federal $600 tax reporting threshold
    You just scared me for 2 seconds until I recalled I have no state tax, heh. Still not used to Nevada
     
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  4. Urk

    Urk Toy Prince

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    IRS delays federal $600 tax reporting threshold
    Out of jealousy I will be now taxing you 10% of profits. Starting NOW!
     
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  5. we_become_monsters

    we_become_monsters Fresh Meat

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    IRS delays federal $600 tax reporting threshold
    What are 'profits'? Is that like a profiterol? Delicious.
     
  6. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    Profiterole = "small profit". The pastry was given that name due to its size and yumminess, a simple French play on words.
     
  7. hellointerloper

    hellointerloper S7 Royalty

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    IRS delays federal $600 tax reporting threshold
    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?
     
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  8. Anti Social Andy

    Anti Social Andy Die-Cast

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    IRS delays federal $600 tax reporting threshold
    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! . . .
     
    Last edited: Feb 3, 2023
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  9. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    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.
     
  10. JoeMan

    JoeMan Mini Boss

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    IRS delays federal $600 tax reporting threshold
    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.
     
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  11. Roger

    Roger Vintage

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    IRS delays federal $600 tax reporting threshold
    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.
     
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  12. animator

    animator Mr. Freshly Smacked Ass Staff Member

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    IRS delays federal $600 tax reporting threshold
    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.
     
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  13. Biff

    Biff S7 Royalty

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    IRS delays federal $600 tax reporting threshold
    [​IMG]

    Gotta pay for that trillion dollar coin somehow.
     
  14. blakewest

    blakewest Post Pimp

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    IRS delays federal $600 tax reporting threshold
    Bitcoin
     
  15. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    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.
     
  16. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    Bit coin.
    [​IMG]
     
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  17. hellopike

    hellopike S7 Royalty

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    IRS delays federal $600 tax reporting threshold
    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…
     
  18. JoeMan

    JoeMan Mini Boss

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    IRS delays federal $600 tax reporting threshold
    Yeah I looked into NJ, like Roger says, looks like NJ has their own $1000 level. So check your individual states.
     
  19. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    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?
     
  20. JoeMan

    JoeMan Mini Boss

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    IRS delays federal $600 tax reporting threshold
    I don't know. I'll have to ask my accountant about it when I do taxes this year.
     
  21. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
  22. Roger

    Roger Vintage

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    IRS delays federal $600 tax reporting threshold
    I didn't know anything about a potential NJ issue. FAWK! I'll be talking to my accountant too.
     
  23. akum6n

    akum6n Vintage

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    IRS delays federal $600 tax reporting threshold
    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.
     
  24. eleggua

    eleggua Toy Prince

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    IRS delays federal $600 tax reporting threshold
    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.
     

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