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1099-K threshold being lowered to $600 - impact to our hobby?

#1 2021-03-14 2:05pm

snitzer
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1099-K threshold being lowered to $600 - impact to our hobby?

Within the most recent US Stimulus Package, there is a section that mandates all third party payment systems (PayPal, eBay, Venmo, etc) send the IRS a 1099 form whenever a seller receives a total of $600 or more for an entire calendar year. This is down from the current threshold of $20,000.

Does this mean a return to all cash transactions? Rise of Craigslist again?

This one hurts sad

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#2 2021-03-14 2:20pm

jjs340
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

How can that be? I thought that Joe Biden said that anyone making less than $300,000 a year would not pay a penny more in new taxes. Everybody who voted Democrat is going to get exactly what they voted for.

Last edited by jjs340 (2021-03-14 2:21pm)


Shut up and listen to PERRONT. He knows better. He told me so. Don't be a pussy. Just ask him.

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#3 2021-03-14 2:23pm

FRESSTYLE FREEK
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

yikes this sounds like it sucks!!!!!


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#4 2021-03-14 2:30pm

turdburd
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

jjs340 wrote:

How can that be? I thought that Joe Biden said that anyone making less than $300,000 a year would not pay a penny more in new taxes. Everybody who voted Democrat is going to get exactly what they voted for.

They probably consider it a fee and not a tax. Politicians, what do you expect.


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#5 2021-03-14 2:37pm

snitzer
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

jjs340 wrote:

How can that be? I thought that Joe Biden said that anyone making less than $300,000 a year would not pay a penny more in new taxes. Everybody who voted Democrat is going to get exactly what they voted for.

No such thing as free money but what do I know? big_smile

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#6 2021-03-14 7:18pm

laxboy
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

They have been doing this in Massachusetts for years.

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#7 2021-03-14 7:58pm

turdburd
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

Going to be a big hit for anyone that makes or sells on etsy and similar sites. Definitely not helpful to people trying to make some extra money to make it by.


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#8 2021-03-14 8:07pm

troynlori
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

There were 5 states that did this last year.  Lucky me....one of them was Virginia.  It was new in VA.


Hi.

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#9 2021-03-14 9:28pm

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

I don't think it's going to stick. The jump from $20k to $600 is so drastic, that it will galvanize the deep pockets money from the likes of ebay and PP who will suddenly have to pay an army of accountants to handle the forms, let alone the loss of business from people simply deciding not bother with their side hustles anymore. Their real target I believe is Uber and such, just like they tried to do here and Cali and looks like will end up getting frankwit Newsome recalled (that is if you don't believe that the real reason Cuomo and Newsome are suddenly in hot water is to take them out so they can't interfere with Kamala's re-election bid in 2024).

I doubt it will have much of an effect on us small time sellers- I mean it's really no trouble for us to take a form we receive in the mail from PP as some sort of new yearly statement to add to out taxes, but the cost on the part of the corporations paying for our bought-and-sold congress is another story.

Last edited by ChattyMatty (2021-03-14 9:34pm)


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#10 2021-03-15 6:03am

jberg27
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

I agree with much of what you say; however, my experience is that large corporations don't fear new regulations.  At a certain point it is only the large corporations that can afford to comply with the regulations so it becomes a government subsidy of sorts (acts as a gatekeeper to keep smaller players out of markets).

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#11 2021-03-15 6:48am

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

ChattyMatty wrote:

I don't think it's going to stick. The jump from $20k to $600 is so drastic, that it will galvanize the deep pockets money from the likes of ebay and PP who will suddenly have to pay an army of accountants to handle the forms, let alone the loss of business from people simply deciding not bother with their side hustles anymore. Their real target I believe is Uber and such, just like they tried to do here and Cali and looks like will end up getting frankwit Newsome recalled (that is if you don't believe that the real reason Cuomo and Newsome are suddenly in hot water is to take them out so they can't interfere with Kamala's re-election bid in 2024).

I doubt it will have much of an effect on us small time sellers- I mean it's really no trouble for us to take a form we receive in the mail from PP as some sort of new yearly statement to add to out taxes, but the cost on the part of the corporations paying for our bought-and-sold congress is another story.

Oh, it's going to stick. The "army of accountants" if going to get paid for with increased fees. So us sellers will take it in the rear with increased taxes, then take it in the rear again with higher fees. One more note... the tax will get paid even if you sell an item at a loss.

Once again, a big shout out and special thanks to all of those who put the Democrats in office.


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#12 2021-03-15 7:42am

kalel92198
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

My friend also said 1099 on f/f as well. So yea. I think I might deal with money orders, cash or check from now on.


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#13 2021-03-15 8:27am

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

Simple.... smile

Only do money orders like...


CRUZR_ADDICT


Problem solved!!!  wink


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#14 2021-03-15 8:47am

jjs340
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

Dirty Habits wrote:

Simple.... smile

Only do money orders like...


CRUZR_ADDICT


Problem solved!!!  wink

Is it that simple? Can you even accept payment via money order on Ebay anymore? Even if you could, The IRS doesn't care how you received payment. The statement is going to the IRS stating your total sales.

Last edited by jjs340 (2021-03-15 9:08am)


Shut up and listen to PERRONT. He knows better. He told me so. Don't be a pussy. Just ask him.

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#15 2021-03-15 8:56am

thesega
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

The number has always been $600 for 1099 contract employees. I tried looking up what you said and nothing came.up, do you have article?


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#16 2021-03-15 9:18am

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

jjs340 wrote:

Dirty Habits wrote:

Simple.... smile

Only do money orders like...


CRUZR_ADDICT


Problem solved!!!  wink

Is it that simple? Can you even accept payment via money order on Ebay anymore? Even if you could, The IRS doesn't care how you received payment. The statement is going to the IRS stating your total sales.

This is a great point.  Money orders and the like will reduce the likelihood you are caught underpaying taxes, but does not eliminate the liability.  In the unlikely case you are audited these alternative methods of payment are probably not going to prevent the income from being found.  The risk of an audit is minuscule, so a quantifiable risk (there will be penalties and interest if you’re caught).  The crux of the matter is the bad policy that has been legislated. 

Remember, the federal government does pay people for tattling on tax scofflaws and you can’t get access to name of who did it.  The fix is to find legislators that will change the law.

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#17 2021-03-15 9:50am

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

Well I suppose it was a good thing I sold all my shit last year lol. So much for living in free country, looks like the baddies are getting their way. And once the zip-tie tightens, it doesn't loosen till it breaks.


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#18 2021-03-15 12:06pm

ROOK88
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

People, just go start a small business, it simple and quick (dont remember the fees but cheap as heck).  write everything off for 5 years then fold the business and start a new one. theres ways around everything if u know how


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#19 2021-03-15 12:37pm

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

The 1099k form is true is was meant to go after gig workers like uber lyft and so forth , what happened is guys who were selling online years ago were labeled side gig / side income so basically everyone got swept into this one  .  This just means people will raise prices again on items to cover the taxes


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#20 2021-03-15 1:50pm

snitzer
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

esp_mini_wi wrote:

The 1099k form is true is was meant to go after gig workers like uber lyft and so forth , what happened is guys who were selling online years ago were labeled side gig / side income so basically everyone got swept into this one  .  This just means people will raise prices again on items to cover the taxes

I think this is what we’ll see. Buyers will take the brunt of it as anyone w/ a hobby now who sells over $600 worth of “stuff” will receive a 1099K.

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#21 2021-03-15 2:09pm

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

The guys who are selling are gonna be in for a rude awakening come January 2022 when they get a tax bill/debt notice . And depending on how crazy crazy joe goes on his proposed tax plan this could end up going to a 15-22% tax rate because businesses are gonna argue that why should they pay high taxes and not the person selling items via internet


I need beaners!!!!!!

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#22 2021-03-15 6:48pm

FU
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

Vote woke. Go broke.

Seems like a   "400K/$600" reach-around hidden in a blatant bailout/payoff  , courtesy of Capt. CornPop  and his motley coalition down there in DC.


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#23 2021-03-15 7:07pm

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

If this is or says what I think it says lol
We will all be able to build a bad a$$ bike for the actual cost cool

Am I misreading or misunderstanding this?

I'm with it if the GT pro or Hutch pro racer costs 300 again for a nice frame set and DC mx1000s back to 125 for the caliper and lever, 200-225 for a nice tuf neck stem and 100 tops for a GT 80s stamped seat. The good ole days
cool

They don't want people to be able to afford a hobby lol


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#24 2021-03-15 7:15pm

kalel92198
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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

I quit selling on eBay after the managed payments garbage was enforced. Now I won’t sell anything past 600 if PayPal is involved. It will be local sales, cash only or money orders.

Last edited by kalel92198 (2021-03-15 7:15pm)


As Per The Museum Rules I am not allowed to have external links in my signature after having them up for 6 months to a year? Why because I pissed them off for calling out the obvious! Here’s my signature:
REMOVE THE CANCER FROM THE MUSEUM SO WE DONT HAVE TO DEAL WITH HACKERS ANYMORE!
ISO:85 mcs styler f/f
Nbd Kattsclawws67
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#25 2021-03-16 9:36am

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Re: 1099-K threshold being lowered to $600 - impact to our hobby?

jjs340 wrote:

How can that be? I thought that Joe Biden said that anyone making less than $300,000 a year would not pay a penny more in new taxes. Everybody who voted Democrat is going to get exactly what they voted for.

That POS biden has been lying and screwing the American people for 47 years,  anyone who was stupid enough to actually believe what he was promising,  even though common sense should have informed them that there was no way that he could deliver any of that without a huge cost. Look how much gas prices are increasing,  and that is just the beginning.  Anyone who voted for him should be taken out and flogged for what they did to this country. mad


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