Author Topic: Ebay to start issuing 1099's to sellers in 2022  (Read 469 times)

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Offline moron_chicken

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Ebay to start issuing 1099's to sellers in 2022
« on: January 02, 2022, 08:16:35 PM »

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022.

Online JailOJohn

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #1 on: January 02, 2022, 08:27:20 PM »
I hate e-bay….and government taxes……

Offline jleonard1967

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #2 on: January 02, 2022, 09:43:25 PM »
some states already are in effect.  Illinois for one is.  If you are a casual seller of you collection, there are plenty of ways to get the tax to zero.  They are more after the big stores that didn't pay taxes not the individual.  Just use what you paid vs what it sold for. most times you can net to zero.  Also if they are going to tax you like a small business then you get the same benefits of small business.

Offline Alexeirex

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #3 on: January 02, 2022, 10:43:27 PM »
some states already are in effect.  Illinois for one is.  If you are a casual seller of you collection, there are plenty of ways to get the tax to zero.  They are more after the big stores that didn't pay taxes not the individual.  Just use what you paid vs what it sold for. most times you can net to zero.  Also if they are going to tax you like a small business then you get the same benefits of small business.

I was wondering about that myself as I was sent monthly summary statements from ebay in 2021- I don't make much profit after all of the fees and underpaid postage but most of the sales are like garage sale or old  items I bought ages ago where I don't have receipts.
I know this will also show up in turbo tax for the 2021 return - I'm going to ask around to see how other Ebayers are going to handle this.
Alex

Offline RawGoo

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #4 on: January 02, 2022, 11:00:29 PM »
I hate e-bay….and government taxes……

This one isn't ebay's fault.  But I do hate taxes, especially when it seems like I am paying taxes ON taxes  >( >(

Offline RawGoo

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #5 on: January 02, 2022, 11:56:46 PM »
I was wondering about that myself as I was sent monthly summary statements from ebay in 2021- I don't make much profit after all of the fees and underpaid postage but most of the sales are like garage sale or old  items I bought ages ago where I don't have receipts.
I know this will also show up in turbo tax for the 2021 return - I'm going to ask around to see how other Ebayers are going to handle this.
Alex

I don't know if I'll get one for 2021, hopefully not.  And, I was planning on selling off a lot of older non-Wacky stuff this year, and like you, I have no receipts for things I bought ages ago; many items were purchased at toy shows, where no one wrote receipts.  Actually, I only have receipts for recent online purchases where I saved PDFs.......  Even for the Wacky minis, I don't have Target and Walmart receipts, just Amazon invoices. 

Offline moron_chicken

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #6 on: January 03, 2022, 09:44:01 AM »

I originally thought that the tax would be on a gain.  So If I bought a wacky packages collection for $1000 and resold it for $1500 the tax would be on $500.  I read the rules, not the case.  It is on the full amount and it does not even matter if there is a loss.  So if I bought a piece of furniture for $5000 and sold it years later for $2500 it is taxed as income.  The IRS is focusing on venues like Ebay, Etsy, Facebook market place.  They will be monitoring bank accounts, paypal, venmo and like for transactions > $600.  With paypal and venmo if you sell it as a good or service the tax will apply.  Not sure what they are going to do with bank accounts yet. 

Think of selling your boat, motor cycle, car, or some large ticket item.  They will all be taxed now.

Offline moron_chicken

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #7 on: January 03, 2022, 09:45:05 AM »

This starts with 2022 not 2021 for those questioning. 

Offline RawGoo

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #8 on: January 03, 2022, 11:53:28 AM »
I originally thought that the tax would be on a gain.  So If I bought a wacky packages collection for $1000 and resold it for $1500 the tax would be on $500.  I read the rules, not the case.  It is on the full amount and it does not even matter if there is a loss.  So if I bought a piece of furniture for $5000 and sold it years later for $2500 it is taxed as income.  The IRS is focusing on venues like Ebay, Etsy, Facebook market place.  They will be monitoring bank accounts, paypal, venmo and like for transactions > $600.  With paypal and venmo if you sell it as a good or service the tax will apply.  Not sure what they are going to do with bank accounts yet. 

Think of selling your boat, motor cycle, car, or some large ticket item.  They will all be taxed now.

I was thinking like you were.  If it is actually income tax on the full amount paid (which will likely include shipping and maybe sales tax), I'm done with this.

Offline drono

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Offline lucidjc

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #10 on: January 03, 2022, 12:29:25 PM »
  They are more after the big stores that didn't pay taxes not the individual. 

I am having a hard time agreeing with this. $600 is hardly going after big business. This IS geared more for the individual. Like we need to give government more money to spend, cause they spend it right!!



jim

Offline Alexeirex

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #11 on: January 03, 2022, 12:42:22 PM »
I originally thought that the tax would be on a gain.  So If I bought a wacky packages collection for $1000 and resold it for $1500 the tax would be on $500.  I read the rules, not the case.  It is on the full amount and it does not even matter if there is a loss.  So if I bought a piece of furniture for $5000 and sold it years later for $2500 it is taxed as income.  The IRS is focusing on venues like Ebay, Etsy, Facebook market place.  They will be monitoring bank accounts, paypal, venmo and like for transactions > $600.  With paypal and venmo if you sell it as a good or service the tax will apply.  Not sure what they are going to do with bank accounts yet. 

Think of selling your boat, motor cycle, car, or some large ticket item.  They will all be taxed now.

Wow, this doesn't even make sense, as in a regular business you would expense the cost and expenses related to acquiring and selling the item.
If Ebay (and the IRS) is required to treat us like a business, we should have the business expenses deducted.
A

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #12 on: January 03, 2022, 01:10:56 PM »
I am having a hard time agreeing with this. $600 is hardly going after big business. This IS geared more for the individual. Like we need to give government more money to spend, cause they spend it right!!

jim

Looks like the IRS is trying to make up for all the tax breaks to billionaires by going after us little folk.   I'm so glad Trump and the Republicans gave billionaires those extra homes and yachts they so desperately needed.    :-\ :-\
Send me your borderless wackys!

Offline NationalSpittoon

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #13 on: January 03, 2022, 01:16:04 PM »
I am having a hard time agreeing with this. $600 is hardly going after big business. This IS geared more for the individual. Like we need to give government more money to spend, cause they spend it right!!



jim

Falling Down. That movie sums it up.

Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #14 on: January 03, 2022, 01:16:17 PM »
Looks like the IRS is trying to make up for all the tax breaks to billionaires by going after us little folk.   I'm so glad Trump and the Republicans gave billionaires those extra homes and yachts they so desperately needed.    :-\ :-\

Pretty impressive to blame Trump for something the Biden admin is pushing. The spying on bank account activity is actually part of the Build Back Better bill.
« Last Edit: January 03, 2022, 01:22:27 PM by Paul_Maul »

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #15 on: January 03, 2022, 01:18:17 PM »
Pretty impressive to blame Trump for something the Biden admin is pushing. 👍

Pretty impressive redirection.
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Offline 70s_Kid

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #16 on: January 03, 2022, 01:19:17 PM »
Looks like the IRS is trying to make up for all the tax breaks to billionaires by going after us little folk.   I'm so glad Trump and the Republicans gave billionaires those extra homes and yachts they so desperately needed.    :-\ :-\

The Biden family has been a corrupt crime family making millions off the taxpayers for decades, and now Biden wants the IRS to spy on Americans and have access to their measly checking accounts...  what's next Brown Shirts pounding on your door making sure you don't have any money under your bed or too much food in storage?  Yep, it's coming...

Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #17 on: January 03, 2022, 01:19:44 PM »
Pretty impressive redirection.

Redirection of what? The Biden admin are the ones putting forth the legislation empowering the IRS to spy on our bank account activity.

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #18 on: January 03, 2022, 01:22:42 PM »
Redirection of what? The Biden admin are the ones putting forth the legislation empowering the IRS to spy on our bank account activity.

What is the new law that the Biden admin has put forth to do this?   Did it take a new law?   How do we know Biden is behind this?   Maybe the IRS decided on their own.   I do know that Trump wanted tax breaks for billionaires.   He bragged that it was the best thing his administration did.
Send me your borderless wackys!

Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #19 on: January 03, 2022, 01:23:24 PM »
What is the new law that the Biden admin has put forth to do this?   Did it take a new law?   How do we know Biden is behind this?   Maybe the IRS decided on their own.   I do know that Trump wanted tax breaks for billionaires.   He bragged that it was the best thing his administration did.

It is part of the Build Back Better bill.

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #20 on: January 03, 2022, 01:27:41 PM »
The Biden family has been a corrupt crime family making millions off the taxpayers for decades

Yes, Giuliani did some great investigative reporting on that.   
Send me your borderless wackys!

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #21 on: January 03, 2022, 01:28:25 PM »
It is part of the Build Back Better bill.

Interesting.   Specifics?
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Offline Swiski

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #22 on: January 03, 2022, 01:37:27 PM »
some states already are in effect.  Illinois for one is.  If you are a casual seller of you collection, there are plenty of ways to get the tax to zero.  They are more after the big stores that didn't pay taxes not the individual.  Just use what you paid vs what it sold for. most times you can net to zero.  Also if they are going to tax you like a small business then you get the same benefits of small business.

I can understand a lower amount to get taxed on, but getting to zero?! How is that possible?

Also, what is the percentage they are going to take? Say you earn 1000.00 (after eBay takes their cut).
« Last Edit: January 03, 2022, 01:41:09 PM by Swiski »

Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #23 on: January 03, 2022, 01:47:24 PM »
Interesting.   Specifics?

https://www.nytimes.com/2021/11/30/business/irs-tax-gap-yellen.html

Of course, they are justifying it by saying it will help catch rich tax evaders. Even if it does, violating everyone’s privacy in service of that goal is inappropriate.

Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #24 on: January 03, 2022, 01:53:29 PM »
I don’t even understand what the IRS would do with that information. Not every deposit into a bank account is taxable income. I buy my mother in law groceries, and she gives me a check to pay for them which I deposit in my checking account. Not taxable income. There is still a $16,000 per person gift tax exemption, so if a friend gives me a $15,000 gift and I deposit it in my savings account, that is not taxable income. So the only thing the IRS can do is see unexplained activity and decide to audit you even though you did nothing wrong. Overly intrusive and inappropriate.

Offline BattleCaps

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #25 on: January 03, 2022, 03:54:08 PM »
Looks like it's back to old school again: checks via snail mail, cash, and trading.

Online is great and easy, but the onerous regulations and paperwork with this $600 limit is going to prompt many ebay small sellers to just quit.  With inflation over the years, it should be at least be a few thousand dollars before triggering a 1099.

Nice to see them trying to nickel and dime the little guy to death some more so they can continue their profligate spending habits

Offline BustedFinger

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #26 on: January 03, 2022, 04:02:52 PM »
https://www.nytimes.com/2021/11/30/business/irs-tax-gap-yellen.html
Sorry, I hate it when a link won't let you read the article unless you subscribe...
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Offline NationalSpittoon

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #27 on: January 03, 2022, 04:30:29 PM »
https://www.nytimes.com/2021/11/30/business/irs-tax-gap-yellen.html

Of course, they are justifying it by saying it will help catch rich tax evaders. Even if it does, violating everyone’s privacy in service of that goal is inappropriate.

Exactly. The benefits do not justify the risks. As usual, the nothing-to-hide argument is a logical fallacy!

We can all pretend like doing deals offline will stick it to the man, but the real problem is obviously in Washington. They’ll always find a way to be intrusive. Less government is more. I’m in progress of writing one of my several college English papers devoted to just that.

Offline moron_chicken

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #28 on: January 03, 2022, 05:18:25 PM »
What is the new law that the Biden admin has put forth to do this?   Did it take a new law?   How do we know Biden is behind this?   Maybe the IRS decided on their own.   I do know that Trump wanted tax breaks for billionaires.   He bragged that it was the best thing his administration did.

Biden could have used executive orders to eliminate any tax breaks he didn't like and he didn't.  He could have put in a harsh tax on millionaires, billionaires, corporations, and he didn't.  And while he is making people think he is a hawk on taxing the rich he is putting taxes like this on people like us that are the little guy.  He had a lobster fest with one of those billionaires that lives on Nantucket for Thanksgiving. 

Offline FourRoses

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #29 on: January 03, 2022, 05:56:56 PM »
The biggest thief on the planet wants even more? Shocking!

Offline All-Brain

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #30 on: January 03, 2022, 06:02:27 PM »
I originally thought that the tax would be on a gain.  So If I bought a wacky packages collection for $1000 and resold it for $1500 the tax would be on $500.  I read the rules, not the case.  It is on the full amount and it does not even matter if there is a loss.  So if I bought a piece of furniture for $5000 and sold it years later for $2500 it is taxed as income.  The IRS is focusing on venues like Ebay, Etsy, Facebook market place.  They will be monitoring bank accounts, paypal, venmo and like for transactions > $600.  With paypal and venmo if you sell it as a good or service the tax will apply.  Not sure what they are going to do with bank accounts yet. 

Think of selling your boat, motor cycle, car, or some large ticket item.  They will all be taxed now.
The tax thing is really just not that big of a deal folks. Saying your done selling on ebay because you have to pay taxes is like saying you refuse to work because you do not want to pay taxes. Yes it sucks I agree but what are you going to do about it?
 I have a seperate bank account for ebay. They deposit my proceeds into that account. All of my shipping comes out of that account.
And yes, you can deduct the "cost of goods" from every sale. Of course you can. No different than any other business. You get a 1099 stating you made $28,000 on ebay last year...you deduct a portion of your cell phone bill, your internet, your space in your house for your office and storage of inventory, your milage on your car to and from garage sales and the post office and such, your COST OF GOODS, your SHIPPING PAID (because ebay counts the shipping you receive from a buyer as income)
and other expenses like boxes, bubble wrap, Rollo Printer, Ring Light......and whatever.....now your taxable income is down to say $12,000.........
Set aside 25% of your sales income for taxes to be safe......it is what it is........still doable.....still fun....

Offline Plastered Peanut

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #31 on: January 03, 2022, 06:51:16 PM »
Sorry, I hate it when a link won't let you read the article unless you subscribe...

Me too!   Would have liked to have read the article...
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Offline bandaches

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #32 on: January 03, 2022, 06:54:25 PM »
The tax thing is really just not that big of a deal folks. Saying your done selling on ebay because you have to pay taxes is like saying you refuse to work because you do not want to pay taxes. Yes it sucks I agree but what are you going to do about it?
 I have a seperate bank account for ebay. They deposit my proceeds into that account. All of my shipping comes out of that account.
And yes, you can deduct the "cost of goods" from every sale. Of course you can. No different than any other business. You get a 1099 stating you made $28,000 on ebay last year...you deduct a portion of your cell phone bill, your internet, your space in your house for your office and storage of inventory, your milage on your car to and from garage sales and the post office and such, your COST OF GOODS, your SHIPPING PAID (because ebay counts the shipping you receive from a buyer as income)
and other expenses like boxes, bubble wrap, Rollo Printer, Ring Light......and whatever.....now your taxable income is down to say $12,000.........
Set aside 25% of your sales income for taxes to be safe......it is what it is........still doable.....still fun....
Thank you from getting that out of control thread back on track.  In terms of presidents and taxes both sides need to stop pretending either side was ever interested in taxing the rich, how many poor politicians do you know? cut the red versus blue crap people we are all one big group United States of America and government is corrupt on both sides stop pretending its one way street.
« Last Edit: January 03, 2022, 07:51:56 PM by bandaches »
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Offline Paul_Maul

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #33 on: January 03, 2022, 07:54:55 PM »
I have never sold on eBay, I’m concerned about my banking activities being scrutinized by the IRS, and I would feel the same way if Trump were pushing that. If Biden wants to catch wealthy tax evaders, than make the threshold $100,000, not $10,000, which will affect all of us.

Again I ask, why does the IRS need to know about my bank deposits, which are not necessarily taxable income?

Offline bandaches

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Re: Ebay to start issuing 1099's to sellers in 2022
« Reply #34 on: January 03, 2022, 08:34:51 PM »
I have never sold on eBay, I’m concerned about my banking activities being scrutinized by the IRS, and I would feel the same way if Trump were pushing that. If Biden wants to catch wealthy tax evaders, than make the threshold $100,000, not $10,000, which will affect all of us.

Again I ask, why does the IRS need to know about my bank deposits, which are not necessarily taxable income?
The IRS would not get indvidual transaction listing. The IRS would get total amount and then obviously go after big fish ie someone makes $100k per year and somehow has $200k worth of bank deposits and claims $0 is income, it is worth a look.  Could be all grandma reinbursements for grocery shopping or more likely a flow of monies that were subject to tax.  Actuarians will come up with models to earmark amounts and ratios that draw attention.  So given there is a problem of tax evaders, what is your solution?  Let's not be critics without being authors.  Perhaps you feel the problem doesn't exist at all?
Contact me at bandaches@yahoo.com as I have tons of wackys for sale!  Visit my website http://www.wackypackage.com/

 

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