Ebay, Poshmark, Mercari, are others are in a race against the clock to try to change new 1099k tax reporting requirement. They're part of the Coalition for 1099k Fairness, a group fighting in Washington D.C. to raise the tax threshold from $600 to $5,000 for selling things online.
President Biden signed a bill into law in 2021 that will require third-party online sales platforms to issue 1099k tax forms to anyone who sells more than $600 on their platforms. That means people who are reselling secondhand items or items they created will have to report the income they receive from these platforms in their tax returns.
The platforms say it's important for income tax to be reported correctly, but they claim most of the people making money online don't know how to properly file a deduction for their expenses and now face tax unfair burdens that will result in people no longer recycling goods by selling them online.
Many people have wondered "Do I need to pay taxes on things I resell?" As a freelance journalist, I wanted to get to the bottom of these new requirements and investigate if Ebay, Poshmark, Mercari, Etsy, Tradesy, Reverb and Offer Ups new lobbying group "The Coalition for 1099k Fairness" claims were valid.
Watch the video and let me know what you think? Will you be lobbying for a change in the 1099 reporting threshold?
Will you stop selling things online? Have you made a profit selling your things online or do you simply sell things you no longer want anymore at a loss?
More information about The Coalition for 1099k Fairness can be found here: 1099kfairness.org/#:~:text=The%20Coalition%20for%201099%2DK,platforms%2C%20while%20empowering%20entrepreneurs%20and.
Ebay and TaxAct 1099k information blog: blog.taxact.com/1099-k-reporting-thresholds-for-ebay-sellers/
My work as a journalist: authory.com/NikkiDavidson
Follow me on facebook: nikkidavidsonreports
#reselling #ebay #poshmark