Why eBay is fighting new 1099k tax laws
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- เผยแพร่เมื่อ 11 ก.ย. 2024
- Ebay, Poshmark, Mercari, Tradesy, Etsy, Reverb and Offer Up aren't happy with the new $600 1099k tax reporting requirements for casual online sellers and resellers and now they're fighting in Washington D.C. to raise the threshold from $600 to $5,000.
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.....
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The left says, TAX THE RICH! TAX THE RICH! TAX THE RICH! Then they pass a bill like this. Who's selling $600 on Ebay? It ain't the rich.
People should NOT be paying taxes on items they are “reselling” (that were already taxed on the original purchase)!! This is double taxation (and has been going on unfairly for decades)! This needs to stop!!! The Government should only be allowed to tax an item ONE time! 🤬
It's a dem Ruse!
One time from the same person. When you buy a car, you pay tax. When you sell it, the new owner pay tax on it. So government tax same item multiple times all the time, just not from the same person. This is ridiculous.
If you sell an item for less than its adjusted cost basis, there is no tax. If you sell an item for more than its adjusted cost basis, you only pay a tax on the profit.
@@jimtrue1465 If you get the 1099-k though you still have to report it on your taxes for what you paid and net it out so it shows you profited 0. Also you need to keep the receipts for everything so that you have the original purchase price.
Who keeps receipts from 45 years ago?
Taxes should ONLY be collected on profits only, not gross revenue. The government/IRS knows that 95%+ of casual sellers selling items that they acquired 10,15, 20+ years ago will not have kept receipts to prove original cost. Therefore, they will be wrongfully taking advantage of these people by taxing on gross revenues, not profits. This should be illegal.
👍 agree!
It's a dem Ruse!
And most sells are at a lower cost than original purchased price. How can they tax people on loss? I paid lot more on my purse and sold it for 20% of the purchase price. I should be able to deduct the loss. There’s no income.
@@Lulu-vi4wb They are now expecting us to keep receipts on everything we purchase, just in case we decide to sell it at a later time. Crazy!
I agree and I only sell as a hobby and rarely profited. Even if I did, it was only a few dollars and after the eBay fee is deducted, I am in the hole so suffered losses only and now they want to tax it. How stupid.
If you sell something at a loss, don't put the sale on your tax return. As you point out, the IRS knows that most casual sellers selling used personal-use items are selling at a loss. If the IRS questions the sale, I'd be very surprised if the IRS would not accept just an explanation, especially as this is new and the IRS knows people don't keep receipts for years.
Social security considers anything Schedule C self employment to be substantial gainful activity, meaning you can lose your disability benefits over selling a $600 used personal item online. It’s ridiculous.
There are a LOT of people this is going to effect that are in that situation that I've heard from so far. It's honestly very sad.
Sounds like communism to me.
Actually I believe that is incorrect, because you are allowed to make up to about $1,350 a month outside of SSDI. Now if you go outside that $1,350 for the month social security will stop benefits for the next month and then restart benefits the month after.
SGA doesn't come into play unless you're consistently making over the $1,350 limit on a monthly basis. Then that's when social security starts checking for SGA and when you're making too much.
@@willhustle25 people have lost their social security on less. Self employment is treated different than w2 income. If They think you can work they will cut you off quickly. It doesn’t matter what the SSA thresholds are
Our NEW CROOK GOVERNMENT.
I live in Ca , 79 yrs old, 4 yrs ago I started selling on eBay. I really can' t live on SS. Listed things from when I worked. Jewelry, scarves, Shoes, Jackets, a purse or two. Some very nice internet games my grandchildren had from when young, a large matchbox collection. Gosh, so much stuff just laying around in the garage boxes. I told my church friends, my children, grandchildren, they started giving me things to sell, was having fun. My pastors wife just gave me new tee shirts, probably sell them for $12.00, free ship. Then, my son in Texas told me about the $600 tax change. Couldn't believe it was Aug 21, and I didn't even know this!
Probably just quit, have garage sales from time to time when weather permits. Very sad, I was having fun. I grossed almost $4,000 last yr. That's all gone.
You won’t go to jail you just gotta pay the taxes
Hi Twyla! Thanks for sharing your story. I'm not quite sure how it works with social security, if you're allowed to make up to a certain amount of money? I would research how much that is just to be sure.
I’m also selling my old stuff or things I don’t need, want any more as I’m retired. Now guess I have to donate them all. The Biden administration is killing the small people.
Thank you for covering this! I’ve stopped selling on Mercari and Poshmark because of this new law and really thought it was ridiculous. I’m just a SAHM that sells family clothing here & there for spring cleaning, to keep tidy closets, or to barter for other items we need. I was not running a business. Now I just give family clothing to Goodwill and buy less. That section of you calling the IRS was ridiculous 😂.
Thank you! It’s really interesting how it’s a law that seems like it will affect a lot of people but there’s not a lot of coverage about it!
Let’s be real, the ppl making lots of money online were already paying taxes... us small sellers (like students) weren’t making tons of money 🙄
The Dems caused this, and know that it is easier to shake down the little guy, than to go after the fat cats, who have the resources to hire an account.
The democrats don't care they want us suffering.. tax tax tax
Great video, but I just grow progressively more irritated at this policy the more I think about it.
20k is quite the high threshold but 600 is way too low and punitive. I sold an iFit membership card that came with our treadmill in January and that was 200 alone. If I sold 2 more items of that caliber I would be subject to this punitive tax, and that was only the first month of the year. Having to plan out what you can sell or face an unexpected tax bill come filing season is a complete disaster.
This is absolutely absurd and I hope they raise it up to the purported 5k or even 10k.
I agree that it would be very easy to get to that $600 threshold with just a few items. A lot of casual sellers only sell things on eBay BECAUSE they are worth decent money. They may just donate something only worth $15, but if they have something laying around that's worth $200, its more likely they'll consider trying to resell it online. Unfortunately, people who have never sold online don't realize that it's easy to hit that number pretty quickly.
it's all a plan by the WEF-"you will own nothing and be happy".
I agree. I think the threshold should be, at least, above poverty level earnings.
This video should have thousands of views, as it affects ALL platforms and all of us as resellers. Thank you very much for covering this topic, and think this $600 threshold is ridiculous. (Maybe make the title of this video more of a clickbait type, and I never would say that but this information and that eBay is fighting this is key, and we ALL should be fighting this)
Thank you for sharing the link to 1099k Fairness information.
Thank you! Please share it with anyone you know who is a reseller!
it''s all a plan by the WEF.
@@judywaddell6065 if the WEF and the Davos Manifesto were really at play this would play out in the opposite fashion, one would think, if they mean what they say, especially since most fast fashion ends up in landfills, overseas, and 20% of all manufactured clothing does not even get to a seller.
This is the reason why I absolutely hate getting in contact with the IRS they put you through a bunch of the runaround for absolutely no reason because in their minds all they want to do is collect without having to talk to anybody yet we're expected to pay our taxes like obedient little dogs but you don't want to help us with any questions that we may have it's ridiculous
Unbelievable!!! I made a whopping 1100.00 on eBay. After all my deductions I’ll loose $ for sure. Not to mention an account fee. 😳 Everything I sell I have purchased in the past & already paid tax on it. And like your shoe scenario of course I won’t make $ reselling an item. In a way I guess I’m paying double taxes. I’m retired and on Medicare & just trying to make some extra $ for everything that has had price increases. Like gas, groceries, insurance, etc. Heck, cat food and litter has increased to the point I can’t afford a pet. After she’s gone I won’t rescue or adopt another pet. 😢 I agree that I’ll be in the same boat with many other sellers just trying to get buy, will no longer sell on eBay. I looked at it as kind of a hobby. It was fun & kept me busy. Guess I’ll have to find some other form of entertainment so I don’t end up just sitting in my rocker watching T.V. Thank you for the heads up on the new laws. What a shame. They should be going after the big companies & corporations that don’t pay anything!
keep voting blue is your answer, you got what you voted for, inflation reduction act is kicking average American behind.
I feel like the view total is missing a decimal or two. This is a very timely and useful video. I’m someone who only sells things once a year, if that, and they not because I have a medical bill or car repair bill that I need to pay. I’m not a business, nor do I want to be. I was thinking of listing a few things on eBay to help offset some recent medical bills, but I’m probably going to skip it. I don’t want to deal with this tax situation. I think a lot of small, occasional sellers are thinking the same thing.
Thanks for sharing your story! It's definitely interesting to hear from your perspective!
This ia a VERY big deal. Not only will it affect grandmothers selling garage sale type items on ETSY or E-Bay, it will touch anyone making 1 transaction and $600 on Air B & B, Verbo, Stubhub, Facebook, and Ticketmaster. Also, anyone in the gig economy on Doordash, Grubhub Uber, or those taking Venmo, paypal or Square for payment. There are going to be some unhappy people come Jan / Feb of next year when they get their 1099K when we are most likely a recession. That 3rd round of Stimulus checks came at a high cost with this new provision being put in the Rescue Act and as a reminder it all happened under Biden. The ironic thing is that it is going to hurt many in the gig economy who are of the same low-income demographics that Bidens likes to court for votes with "freebies"
Yes it does impact a lot of different people and platforms! I made this video specifically about the sale of preowned goods 1099ks because it hasn’t been discussed very much in the mainstream media. Thanks for watching!
God i hate the Biden administration.
I had to cancel many sells because I’m close to the $600 and that money could’ve been big help for me but poshmark won’t even let me print my sale label in till I provide my social # and the the 1099 so I just cancel all my sales and all the stuff I’m selling are used. Always hitting the middle amd low income people. Crook NEW GOVERNMENT.
@@sewmuch2wear the mainstream media are the democrats’ mouthpiece. They won’t broadcast this.
There’s no free lunch in America. The free money we all received and the student loan forgiveness money didn’t grow on trees. Someone has to pay for it.
Thanks Democrats. Not a single Republican voted for this BECAUSE of this.
And many other items... VOTE OUT THE DEMS!!
Vote ALL RED in November. ❤🇺🇸
BS this was all under the REP influence to support the american rescue bill.. GET YOUR F'N FACTS RIGHT
when will americans realize the reps live in the mid class pockets?? reps are shit do nothing all talk no action unless it is for Bezos and Musk...
This could affect ebay business right because if people stop using online selling apps like ebay wouldnt that put them out of business
this is going to be a MESS and nightmare for the IRS !! LOL ! they so richly deserve it, way to go DEMENTIA JOE!
Can't stand Biden. Asians for Trump!
And I’m sure this is going to be a huge burden for the platforms as well. They only had to send 1099k to people who had 200 sales or 20k, now they have to send one to just about everyone on the platform.
Vote in republicans to get it changed 🤷🏼♀️ Dems are sending us into a depression (been in a recession for over a year thanks to Brandon!!! No matter what they want to say a recession is)
For sure!!! Vote all RED come November.
ummm this tax issue was added BY REPUBLICANS to pass the american recue bill of 2021.. get your facts right so we can vote the right party that actually SUPPORTS the mid class and does not live in their pockets like the Reps ALWAYS DO... wtf
and btw every f'n recession was under a REP pres.. stupid tramp added trillions to our deficit and gave the rich a 2.1 trill tax cut in 2017.. they could not wait to get $$... the reps do squat for 99% of tax paying citizens.. they only support the rich who want control over everyone...
@@russrebeleus6919 'tramp added trillions to our deficit'
lol, is that ALL You got with your petty bickering! lol , what a lowlife !! how do you like DEMENSIA JOE!?? lol SUCK IT UP !
Voting is BS. The fix is in. They steal elections. America is done.
Great information! Not to mention my concern of giving out my SSN to a platform that who knows who has access to? I just dropped out of poshmark it's not worth my piece of mind. Thank you for putting this information out there!
We payed tax when buying the item new, now they want to tax it again when selling it half the price. GREEDY!!!!! 🤬🤬🤬🤬
Plus tax the buyer on used items
On top of the unreasonable $600 new limit, one also have to take into consideration the cost of hiring an Accountant with prices ranging anywhere from $300 - $600.
(If you could find one that will take your call)
In addition to paying a monthly fees for a separate checking account to consolidate and track “business” expenses.
And the hassle to try to justify a cost basis for an item that one may take a deduction on for those that do not have receipts for said items.
It is just very overwhelming.
Definitely is a lot of steps the people who are just selling their old stuff! It will be interesting to see what happens.
@@sewmuch2wear Don't expect much. It's a done deal.
@@sewmuch2wear The Dems wanted this, with not one Republican voting for. I think the Dems are going to up it to $5K, and then act like they are the heroes, when again, it was there doing.
Something else, I have not heard one person bring up, is that at the end of 2019, internet sales tax became active. New or used items being sold, doesn't matter, the platform being sold on, takes the tax based on the Buyers sales tax zip code. This was voted on by the Supreme Court, and it was a bipartisan decision. Therefore, the Dems got their tax wish already.
Everyone needs to reach out and change this ASAP
To the normal person that has a regular day job, if you go over $600 in sales, you will pay taxes based on your income tax bracket.
People are not going to hassle with this. Sure, some stuff will be sold locally, but I think there is a high probability, many used items end up in the landfill.
It would make more sense to set the 1099-K reporting threshold to the individual standard deduction for each tax year at the most. Even up to $5000 would be better. The $600 threshold is going to make everyone who sold something no longer eligible for free filing with a majority of self filing services. I think this had more to do with what stocks the politicians held an interest in than catching tax cheats. Expect Intuit's stock to rise back into the 600s soon.
I call it the "Yard Sale Tax"...
Great work! I’ve been super curious about how all this will go for me just saying small things on ebay at basically a loss after all the fees.
This really sucks. I just started gaining traction and now I'm having second thoughts. Between ebay, shipping fees, and now the 1099k I'll basically make half of everything I sell.
What no one is talking about is the vast majority of people do not itemize taxes so the person who sells a family of 4’s shoes for 600 isn’t going to itemize the price they paid for those shoes and if they’re taxes on that 600 they’re paying more taxes than actually owed.
Yes, there’s definitely a chance that people will be overtaxed with this!
But that's what they want. Uncle sam double, triple, dipping on taxes.
Even if you do itemize, you can’t deduct shoes that you buy. Itemized expenses doesn’t include things like that
This is the BEST video I have seen on this topic. THANK YOU! I am confused about one thing though... lets say I have sold $500 on Poshmark and $300 on Discogs in 2022... will I be sent a 1099 if I sold less than $600 on each platform, but from selling on two platforms combined, I have sold over $600?
you will get 1099K , hope you did not vote blue
I don't like it but can understand that if this is a business, reselling, makers, etc....income is taxable. I do not think it is fair for the average person selling off their own household stuff they no longer use, retirees downsizing, people layed off or unemployed selling their own stuff to put food on the table, etc.......Not hard to go over the $600 limit even selling a few things
People pay taxes on item they paid for from seller and then seller pays taxes on sales. If you bought item in store to resell, the item gets taxed again. Geeeeez! One item can get taxed 3 times. 😮 How is that right? Don’t sell online, sell locally and get cash.
Very good point. Would be interesting to see how many times some of these items are taxes if they keep being bought and resold.
Hi there! Locally meaning? This new law is ridiculous 🙁
One is income tax, the other is sales tax. Two different taxes
@@sewmuch2wear same thing with car, same car when change hands, tax is paid again.
Cars, yup. And HOUSES. Think about that!
my buyers already had to pay taxes on my items. this added cost to the buyers make them not want to buy my stuff.
The good news is that if you _do_ gross sales of anywhere from 600 to 5,000, you will _likely_ come out with a LOSS for your taxes. And you will also benefit by paying LESS taxes. Your cost of goods for the downsized item you sell is the same as what the item sells for, that is fair market value. So if it's an old vintage dress you sell for 20.00, you write off the 20.00 against it as the cost for that item. For the example of the pair of sneakers you paid 160.00,, but sold for100.00. Already you have a 60 loss and so you are not taxed on that sale - there is no profit! Instead of doing a whole inventory FIFO / LIFO thing you can also just add up the cost of all the goods that are sold and write it off as "Supplies." In addition to that, you keep receipts for EVERYTHING you purchase that supports your Ebay activity. There is more to it - like good to keep an Excel workbook spreadsheet with separate pages that correspond to the Schedule C to be ready for tax time. It's not exactly easy, but can be done with some thought, ingenuity, effort.
So eBay wants 15-20%, shipping is usually out of my pocket and now the leeches in govt want another 30% or so if you subtract what I already paid for an item that I’m selling there’s nothing left. What’s the point? Maybe they are squelching down on free market anyway they always seem to find ways to do that.
All of these platforms are going to lose at least half of its businesses.
Not sure where you get that 30% figure. Very few people are in a 30% or higher tax bracket. NO ONE pays a 30% tax on capital gains.
@@jimtrue1465 yes they do on any collectibles, movie memorabilia, entertainment memorabilia etc
@@jasonhudson8336 The maximum tax rate for collectibles is 28%.
I’ve stopped selling on eBay, their fees are expensive and add shipping fees too it’s not worth it to resell.
The previous was 20k AND 200 transactions. Not or. Had to open both gates.
You are right! Thanks for pointing that out.
So I just found out the hard way with Cash App. I knew of the new $600 rule BUT I missed the part where a Cash App business account considers ALL payments as business transactions.
So for the last 12 months my wife would Cash App me her portion of a bill that is in my name. All those transactions are going to be reported on the 1099 form next year. I will be paying taxes for accepting money from my wife to pay... a bill.
Welcome to America.
you obviously do not pay attention, the money you wife sent you is NOT taxable!! thats a plus for you ;-)
A non-taxable transaction does not become taxable just because you receive a 1099-K.
But won't he have to prove it to them in order to avoid paying the tax? It will cost time and money to do that.
@@helainehoerning2200 That's why keeping accurate business records is important. Nothing has changed in that regard. The OP stated it was a business account, so presumably he was keeping business records as required by law. Even a simple spreadsheet of payments received from whom and for what purpose will usually satisfy the IRS.
Back to Craigslist......It is abosolutley ridiculous that you get taxed on making money off things you already own and bought and payed tax on. If I make a profit, that is nobodies business. That is like being taxed on a claim. For example, if I use a moving company and they break my stuff and I file a claim....that claim money is to replace my stuff...I am going to get taxed on that as income to or is that next in the their playbook?
this is going to be very interesting, most people sell on ebay for pocket change! i sold a cell phone (used) for less then i paid for it, so there is NO tax to pay to the IRS, and if you think i have a receipt for that cell phone to prove i sold it for less then i paid for it, your joking! not gonna happen! that $600 threshold needs to be raised to 5k or 10k! IMMEDIATELY !!!
So, don't report the sale on your 1040. The IRS doesn't want you to report non-taxable transactions even if you receive a 1099-K.
@@jimtrue1465 So you're saying I should not even enter my 1099K On my 1040? The problem there is I will be receiving [3] 1099 k forms. From PayPal Amazon And eBay.
all items sold We're at a loss It was all pocket money For 2022. So if I enter A1099K form It's going to either reduce my refund or create a tax liability which means I will owe unless I specify the sales on my 1040 form in detail so it sounds like I'm better off not even bother entering the 1099K forms would you agree?
Is funny, but I paid taxes on the moneys I paid on items and before that I paid my taxes on my check and now they want me to pay taxes again ??? that's BS!
You're right. What you wrote is indeed BS. When you sell items, you only pay a tax on any profit.
Darn!!😢 I'm currently on medical disability and have not earned enough credit for temp disability due to being off work a month last year and a month this year because of my chronic illness . I can't apply for permanent disability until October (5 months even). My autoimmune is compromised so I cannot be in close proximity, and reselling would have helped me take care of my bills, but it seems I am screwed with this idea too😭
You can still do it if you keep careful records and make sure you keep track of how much you spend! Just make sure to account for taxes, and hopefully that doesn’t mess with your disability process. I know some people can’t make any money if they’ve been approved for disability.
Thank you so so much!!! I hope I can figure something out
Sorry to hear this. Seems to me there are far more selling to pay a few bills than those in big business. We just got over a pandemic, stores and businesses were totally shut down. Manybusiness inventory totally destroyed, b/c of having to move out of leased locations. Swap meet's closed, so no way to sell inventory. Then, Joe Biden was elected President. Stores started to open, but prices started to climb on every thing. This effected sales on new inventory. My hair dresser told me, his clients come in less. Its a very drepressing time. Then, my one eBay friend who goes to mobile home estate sales and buys old stuff, told me she couldn't be bothered with all this tax stuff on things she doesn't even get receipts on. Thats to bad... we had fun doing this, we both are retired . Don't get why Biden had to do this. Oh well, doesn't surprise me, My friend said, Biden wants me to pay tax on a 1950 rolling pen and a couple of thimbles. Desperate times folks.
H&R Block and other tax preparers are going to love this. More income for them.
$600 is a JOKE
I will stop selling on these platforms. This is ridiculous
I had been an online seller for 10 years but the stupid IRS has made it impossible to have a decent income anymore. For all the work we have to do it's not worth buying and reselling anymore. I shut my stores down on 2022 😢.
I am disappointed because for me personally, I am struggling financially. I can’t afford the out-of-pocket and extras my health insurance won’t cover. I try to sell things here and there to make extra to help me in not so great situations with high costs of everything. It’s not fair that eBay takes a larger chunk and now IRS wants some of it too. Then pay packing and shipping. It makes my blood boil. We have to fight this crap! I can understand if it’s a business, but not a regular person selling infrequently.
CASH IS KING. Cash transactions are private, never give up your right to use cash. Sell local, cash & carry. Sell $599.00 worth online. Screw the damned government.
Cash transactions are the government’s next target, unless you don’t use the platforms at all.
This is absolutely asinine
Fuck no it’s not fair… eBay takes 13% of the sold price… no money to be made now that the IRS wants a cut…. I sold over 12k on Mercari and I’ll tell you right now I’m not filling that shit and if the IRS wants it they can come get it. They better bring plenty of body armor though
They won't need body armor. They'll garnish your wages or put liens on your bank account.
@@johnnyallen843 good think I got a job under the table and have a side gig
Never ask a man that makes a living on people paying taxes, if it's a good idea to pay more taxes.
This IRS new $600 rule really 'helps' small businesses and individuls who are trying to make just a few bucks in not easy now days... How is this allowed??? Who decided this?
Yea we need more people showing this. Especially where I'm from.
I'm also disgusted with the coalition and any Republican lawmaker that is catering to the left and willing to accept a new threshold of $5k! $20k should've never been touched and forced into a bill that had nothing to do with it!
I don't understand why we the people are so compliant paying taxes when the pentagon can use our tax money on whatever they feel is reasonable with little to no oversight. If i am paying taxes I'd like to know that money is going towards someting good and not just into someones pockets. Also, the pentagon has failed their financial audits for the last 4 years and refuses to allow the audits to happen. Imagine if we refuse an audit from the IRS.
BREAKING NEWS: The lowered $600 threshold now delayed until 2024. Imagine how many $$$$ websites like eBay, Reverb, Etsy, lost in 2022 because millions of sellers stopped selling under the $600 threshold this year. WOW.
How was that delayed. I received an email notification the other day saying eBay is reporting it.
Delayed from 2022 to the year 2023.@@bad_vaporizer
Hey, The Coalition for 1099-K Fairness does not appear to be a functioning organization.
I tried to signup - but they don't list my state (MA) and have 2 MS's. They've no social media presence & have never replied to my 2 messages (contact form). WTH?
So what is the update!! It’s almost time to file our taxes 🤷♀️🙈
I have one for you! Releasing a video with a Mercari Rep on Monday.
They want my SSN eBay and Etsy
So let me get this straight even if I made no money on these items I sold and I am selling them lower then what I bought them at. I know even though I owe no taxes have to report this to the IRS and prove I didn't make any money. And I am now forced to pay for a higher tier turbo tax plan that costs more money to get access to the correct forms. And no one compensates me for having to spend more money on tax software.
Great piece. Thank you
Thank you for watching!
These politicians treat money as their lives, and treat sellers as money printing machine mercilessly. I cannot get even 30 bulks from reselling books on eBay because eBay requires SSN for taxation and I don't have it. I also cannot apply it because I am a student without internship currently.
Truth is the government’s don’t want no one to get ahead because they want control. “But know this, that in the last days critical times hard to deal with will be here.” 2Timothy 3:1.
Thank you for the interesting info!
Great reporting. My question is one will receive a 1099 from every platform that passes $600? Also would one need to have track of expenses on each platform to receive deductions but would that be a tangled mess? Or would one be better off just selling on one platform instead of multiple platforms? Thanks for your help
Yes, if you go over the $600 amount, they're legally required to send you a 1099. Honestly, I can't say if it will be harder to manage multiple forms. Ebay now has a partnership with a tax prep service that has a few blog posts that might be helpful for you. Here's a link: blog.taxact.com/ebay/
I am wondering the same thing!
Thanks for the video. I watched the whole thing.
This is too funny. My old Wendy's shift manager left her position at Wendy's to go work at the IRS. it's really no wonder why the irs is so shitty. It's just a bunch of fast food workers in the office
We should all boycott and not use the apps anymore
I am deleting my account right now!! Screw them
Buys a PS5 for $800, then decides to not play it and sell it sealed for $600. Losing $200 in the process, and now paying tax on top of that?! What is going on guys.
7:11 Ridiculous she assumed the 1099-K reported payments are business related and forwarded you to department regarding Schedule C, when the payments reported on 1099-K might not have ANYTHING to do with business. In fact, I could just be calling from a perspective of selling a lot of used personal use items at a loss. Ridiculous. This line of tax code needs to be reverted back to $20k / 200 transactions before next year. So unfair to people selling used items at a loss. I have like $2500 in used items I want to sell on ebay, all at a loss.. and now the IRS sees that $2500 as income.. ridiculous. Have they even provided a form to report losses related to personal use items to offset a particular 1099-k? And now we'll have to itemize every used item we sold -- invasion of privacy -- with cost basis and sell amount.. and being smart enough to save the receipts of every item we buy which we might sell later, and also be smart enough to know how to calculate in shipping costs, ebay fees, paypal fees into the cost basis? What a nightmare for the typical American. Fortunately lately I track all my transactions in great detail in Gnucash. 8:05 A $5000 limit would be more fair. It would allow me to sell all my used items I might need to sell off if there is an emergency and I need cash; I have a few hobbies where I buy stuff used, use it for a while, then sell it for a little less than I paid for it (due to sales tax, ebay fees, shipping, paypal fees).. $5000 would cover it. A lot of the used items I buy cost anywhere betwen $50 to $500. And I could easily sell a few thousand dollars per year if I want to trade them for other things in my hobby.. e.g. electronic music gear, guitars, camera lenses, etc.. 8:52 lol at $600 being a lot of money, with the way inflation is going that $600 is like $300 three years ago... Pocket change. That's no money at all.. what a tedious STUPID nightmare.. I like Biden but wow this new tax code change really upsets me.. It's been bothering me for 5 hours now lol.. I think I am gonna take a break from this. They either gotta provide a decent form with good instructions or change the code. 10:20 Regarding, "Let's go after all these small sellers just trying to make an extra buck": the thing is you aren't making an "extra buck" if you are selling used personal items at a loss.. it's not income.. it's getting back a little of what you paid for it -- and it's absolutely sickening they are charging sales tax on these used personal assets sold at a loss (that's another topic though). The "small sellers" should be gotten after if they are selling items for profit as a business, but this new tax code isn't the way to do it.. it punishes those just selling used personal items at a loss.
Yes, I cut it out so it wouldn’t be too long but I actually told the people on the line that I “sold something on eBay but it was my own item I sold at a loss and wanted to know what to keep on hand for taxes so it wouldn’t be taxed as income.” None of them had any clue, which is why I felt pretty confident saying, the free hotline isn’t helpful, at all!
@@sewmuch2wear I read the following regarding how to report the sell of personal use items at a loss, so the IRS will know what the 1099-K applied to. Quote: "Report the sales on Form 8949, stating your cost basis, purchase date of each item, thus substantiating you sold the item at a loss. Then adjust the loss to zero using code L, because losses on personal property are not deductible". So that's probalby the way to report it. I think in the line description on the form 8949 I'll add that I sold the item on Ebay.. and I'll make a separate 8949 for each marketplace so the subtotals on the sheet exactly correlate to the particular 1099-K. Does the IRS / government really expect people to save the receipts for everyuthing they purchase? This is ridiculous.. Technically you are supposed to have proof of purchase for items listed on tax forms .. bleh. What about when you buy items at a flea market or garage sale, you dont' even get a receipt.. say you sell that item later at a loss on ebay...
@@jenniferw8963 The IRS will take the position of "no proof of purchase = ZERO cost basis", and you can't fight that technicality. Casual sellers of personal property will have to pay up if they didn't keep receipts as the IRS doesn't have time to argue with you.
@@johnnyallen843 But the IRS needs to provide guidance how to properly file taxes to reflect the amounts on the 1099-K are not related to business icnome. Perhaps with guidance on how to properly fill out a Schedule D for these instances.. or perhaps create another form to list the sell of personal property items at a loss with these online services. I am saving all my receipts for everythign I purchase and doing accurate bookkeeping for every penny. I'll not be cheated by the US government.
I just passed 600.00, just buy selling my old toys. I am wondering if it was worth it if I have to pay taxes now,
It's $600 on each platform or all together???
$600 per platform
Okay thanks!
I'm assuming videos like these are going to explode in popularity when people realize they actually have to pay and they have no paper trail like me.
What's even worse is for me, I sold things from my garage; well of course I don't have receipts from 10 years ago when my father was alive. Just a huge pain in my rear.
Paying the taxes isn't even the real problem for me - being moved into a higher tax bracket is; The jump is ridiculously high depending on what bracket you're in from a 9-5. It's like I have been assigned to fail and remain destitute when all I want out of life isn't even much.
I do not disagree with accountability on paying my due taxes - what I do disagree with is screwing over people with arguably next to nothing as it is, and that's what this feels like to a smaller guy like me.
---
Below listed at the bottom is the wiki for the American Rescue Plan Act of 2021 - a small snippet of a large plan.
I agree with the "Three tax increase" - these guys make billions of dollars every year - if you look at anything the GOP has to say on this matter, it's all about "Prohibiting IRS Financial Surveillance Act" that they are pushing for to continue to line their own pockets. Frankly, I do not care about them; What I care about, and what the American people should as well, is the fact that we are getting screwed.
My point is - I am trapped in an embankment with two high walls on either side of me, that the Democrats do not want me to climb and the Republicans do not either.
Horrible, horrible feeling. This country does not care for me; it does not care for my family. It has shown that time and time again.
"Reduction of reporting requirement threshold (1099-K) for third party settlement organizations (e.g. PayPal) from over $20,000 and 200 transactions to over $600 and no minimum number of transaction, effective from tax year 2022. This is expected to impact gig workers, independent contractors, casual eBay sellers, among others. This amendment is projected to generate $8.4 billion over the next decade.[91]"
"Three tax increases on large corporations and wealthy individuals, collectively raising $60 billion in revenue.[92] These are:
Limits publicly traded companies' ability to deduct executive compensation (for employees more than $1 million) from their corporate taxes (will generate $6 billion in tax revenue).[92]"
"Repeals an obscure provision in the tax code that gave multinational corporations additional discretion in accounting for interest expenses (will generate $22 billion in tax revenue).[92]"
"Extends "loss limitation" restrictions on unincorporated businesses (will generate $31 billion in tax revenue)[92]"
Can I write off my car expenses against these so called small business revenues?
"you will own nothing and be happy!".
Letter to Congress Sent
Thank you for this video! I started selling on 3 platforms on 2018 when I decided to quit my job to take care of my 90 year old loving father. This new 1099k new law is so not fair for us part time resellers. When the say $600, do the mean what I made net? Or what I sold the items for? Is FB included in this new law as well?
$600 total...
It will be the amount the platform paid you. So if you sold something on poshmark for $20 and poshmark gives you $15, $15 will appear on your 1099k. If you receive money from facebook (Like if you sold something and shipped it in the mail through marketplace) then yes, you will also receive a 1099k if you receive more than $600 from the platform. Hope that helps.
@@m-cicle-3517 not what I made net?
@@sewmuch2wear thank you so much … this is really so unfair .. just trying to make some money so that I can take care of my 90 year old loving father…💙
Remember good ole Joe’s 250k no tax increase lie! The little guy just trying to keep up with inflation and selling some of their used stuff gets screwed again. Many, Many people use Ebay to just resell items they didn’t use, no longer need, or things like collectibles such as coins or antiques? Most casual sellers don’t keep receipts because they are not buying the items for resale to begin with. Reselling a used item should not be taxed again 8:29 we as income. You already pay sales tax, ebay fees and shipping cost. So almost everything you sell is actually just recouping some of what you paid to begin with. The old rules were actually fair, anybody that sells 20k or more then 200 items is likely trying to make a full time business, but many it just gave them the ability to get rid of things they no longer need.
If I sell something on ebay the buyer pays state tax on that item. Therefore the IRS isn't missing out on any revenue. By taxing the seller they are in collecting double tax. Plus you probably paid a tax when you bought the item, so is paying tax multiple times on the same item fair??
Anyone have a good video on what you can claim as deductions?? Inventory? Etc?
Say I got all these online stores. But everyone is payed through PayPal. I get a 1099k by all of them. Can't I just use the PayPal 1099k one since all the money is pool at one source?
Great video!!!!
Ridiculous
Now I will give it to the GOOD WILL so I don't have to deal with this rats!
thank you for the information. Something else worth looking into would be the 1099k and reporting that is also being put on the money transfer apps like zelle, venmo, paypal, cash app and who knows how many others. Paypal just recently changed their user agreement that has removed the friends and family option for giving money to others. Everything is now just a transaction and it is also under this $600 threshold. With this there is also now a extra 3% fee added to the transaction before the money even gets to the account. I own a business and i am not overly concerned about the 1099k issue but I can no longer use any apps for moving money from myself to a friend or a family member or the other way around with out getting a 1099k for those funds and than getting taxed on them if the irs deems that it considered income. Along the same lines as ebay or any other platform, you can no longer use these apps for a yard sale at your home without getting a 1099k if you cross the the $600 mark. The major issue that I mainly have with this is you have an item that you paid for and paid tax on when you bought it with money that you paid taxes on as income to begin with you can not sell without getting taxed on it again.
Paypal has a friends nd family option, but only for personal accounts. You can open and use a personal account for these transactions. Probably good business practice to keep business and personal finances separate anyway.
You have the law a little incorrect here. The reporting requirements for 1099 used to be $20,000 AND 200 or more transactions. AND, not OR
Is it only if you make 600? Is anything lower than that safe ?
great video ms :)
Damn. I really wanted to sell on ebay. Idk if its worth it now
I left money in a poshmark account for over 2 years which came from personal item sales. Will the 1099k report my withdrawal amount as well as yearly sales earned. I think that's what was said in the video but I might be mistaken.
Poshmark will ask you to add your social if so. But if you haven't sold anything in 2 years I don't think it will affect you at all.
To be honest, I'd reach out to Poshmark support to see if you can get an answer on this one. Even though your sales were two years ago ... you'd be "earning" the money this year if you get your deposit, so they might send you a 1099k if it's more than $600. Either way, I'd get that money out ASAP. If Poshmark goes under, you'd just be out of money. They don't operate under the standards as a bank and leaving money in there can be risky.
Vote Red or perish.
bank account? paypal doesnt require a bank account to receive money. the IRS can go to the address i have on file with ebay...1600 Pennsylvania Ave and get the money from the owner. the other option, open multiple ebay accounts and make sure you dont sell anything $600 and up.
managed payments require your SS# so you cant open multiple accounts
I won't be selling much due to this law.
No way will I sell over 600 on ebay
F+++ fairness
Some one please tell me the irs form / mechanism that is necessary to modify the 1099k amount with the reality of cost, shipping and fees so I can correctly report the profit / income from online sales. Who in their right mind is going to use the amount stated on the 1099k as the true income?
You list the sale on Form 8949 and Schedule D, where you can list the cost basis and selling expenses.
@@jimtrue1465 So, if you are dealing with Ebay type sales, you would generate one document (8449) and Schedule D to reflect all of the yearly sales reflected by the 1099 K ? Or must each transaction be listed individually on one of the forms? Some transactions are only $10 transactions and the amount of transactions may only be 30 in number?
@@lorettacaputo6997 The first question you will have to ask yourself is if you are a business or not. The IRS states that to be a business, the purpose of the activity must be to generate a profit (whether you actually do or not), and the activity must be engaged in on a regular and consistent basis. So, if you are just selling some items you have had and used for a while that you no longer need, you likely will not be considered a business. If, however, you buy a bunch of items for the purpose of selling for a profit, the IRS will consider you to be a business.
Assuming you are not a business, the IRS regulations specify you should not even report on your tax return the sale of any item sold at a loss (for less than its adjusted cost basis). since such loses are not deductible. The IRS has not yet, to my knowledge, issued any guidance on what to do if you receive a 1099-K for such a sale. My guess right now is that a simple explanation included with your tax return (or in response to a subsequent letter from the IRS) explaining the details will suffice, especially if it is clear you are not a business. It is rare that a personal-use item is sold for a gain, but if it is, you should list it on form 8949 or Schedule D. If there are more than one such item, you can combine them into one line (or two if you have some short-term gains (items owned for one year or less) or long-term). List the total proceeds for those items, and subtract out the adjusted cost basis including any fees paid to sell the items to arrive at your taxable gain.
If you are considered to be a business, then how you handle the 1099-K depends on whether you are selling inventory (items purchased for the express purpose of reselling), or whether you are selling equipment you have used in your business (like a used computer or furniture) that you no longer need. The sale of inventory goes directly on Schedule C where you deduct the cost of goods sold. The sale of used business equipment is more complicated because you first have to recapture any depreciation you could have claimed in prior years.
@@jimtrue1465 Thanks for your input. I am not a busines, I have just decided to unload personal items that have accumulated in my home and now I am caught in this stupid 1099K web because the stated total of the transactions have gone above $600.
@@lorettacaputo6997 It will be a mess for a lot of people. Keep in mind that no tax software (such as TurboTax) actually has a screen where you just enter in a 1099-K like they do for a W-2. This is because how a 1099-K is reported on your tax return depends not on the 1099-K itself but on what type of payment the 1099-K represents. If the 1099-K amount represents a payment for services, it goes on Schedule C (even if you don't think of yourself as a business). If it is for something sold, it will go on form 8949 and Schedule D if sold for a gain, but shouldn't be reported on your tax return at all if sold for a loss. The point is you, the taxpayer, have to know what the payment is for in order to accurately put it on your tax return. You might get a 1099-K with $2,000, and part of that might go on Schedule C while some of it might go on form 8949, and some of it might not need to be reported at all.
My advice is report the income as accurately as you can. If the IRS has questions, they will send you a letter via US Mail (never by email, phone, or text) asking for further information, and a simple explanation will usually suffice. I wouldn't worry if you don't have a receipt from something you bought 5 years ago, as long as your explanation is reasonable. "I bought this widget 5 or 6 years ago, at a cost of about $100" should work. IRS auditors aren't stupid and know the average person does not keep accurate records of everything. If you say you bought the widget 5 or 6 years ago for around $100, and the IRS knows that widgets bought 5 or 6 years ago sold for about $100, they will likely be satisfied.
The IRS will be stricter if they deem you to be a business.
Happy Halloween year round…🎃🎃🎃…
This should be illegal. Many items are being sold at a loss on these online sales platforms, and aren't "side gigs." Think about it. Joe Schmoe goes through his garage and finds 20 tools and things he wants to make a few bucks on. He's selling his old air compress - cause he was gifted a new one for Xmas! He's selling his old chainsaw because it needs some work on it and he just doesn't have the time to deal with it. He's got 10 hand tools that he's thrown in a box and is selling for $20. There is an old ladder that still works but is too heavy for him to lug around, so he's getting rid of it....This is common stuff!
Joe is NOT asking full retail price, he is merely trying to get rid of stuff. He's selling these things for LESS than what he bought it for, and he can't prove what he paid for the items as they've been sitting in his garage for 10 years. (Receipts wouldn't even be legible even if he did keep them that long.)
How can the government legally tax Joe in this case, when he is CLEARLY selling his items at a loss to what he originally paid for them?
Items sold for less than the adjusted cost basis of the item are not taxed, even if you get a 1099-K.
@@jimtrue1465 and you cannot get the money from your sale if you do not have SSN because you cannot apply it
I mean going from a $20,000 threshold to $600 is O.D.! I'm glad somebody is speaking out, but I doubt anything will change. They gotta gather all the money they can for Ukraine 🤷🏽♀️
It took me 8 months to reach IRS (calling every business day)
I am pretty sure they cannot tax you on reselling something at a loss. If they try, file as a business and you can easily show that you sold it for less than you paid, making it a loss. I think this new law is for being paid for labor or some "new" items you sold on your online platform. And what about someone who sends their kid in college $600 on Venmo or Paypal--that is NOT reportable income.