IRS Tax Law for Online Sellers - 1099k tax year 2022 - Blu-ray Forum

Chris_MD · 12-14-2021, 03:12 AM

Have you guys heard about this? If you sell stuff online or receive electronic payments, this news is for you:

https://www.eseller365.com/new-feder...place-sellers/

Chris_MD · 12-14-2021, 08:02 PM

Hello?

meremortal · 12-14-2021, 08:09 PM

It's nothing new other than the third-party payment companies being required to report at a lower monetary amount than before. For individuals, the $600 number has been the same for years. If anything, this will probably make it easier for people since they'll send out forms to people and thus it'll be tougher to forget to do it yourself.

RustinCohle · 12-14-2021, 08:12 PM

It's also only "goods and services" payments and doesn't include "friends and family." So you can still venmo your partner half rent, or your friends for dinner, or whatever and it won't count.

Chris_MD · 12-15-2021, 01:09 AM

So the people in this forum, selling stuff, receiving payments electronically....when they hit $600 next year, they are getting a 1099-k form.

meremortal · 12-15-2021, 04:15 AM

Quote:

Originally Posted by Chris_MD

So the people in this forum, selling stuff, receiving payments electronically....when they hit $600 next year, they are getting a 1099-k form.

Yes.

Chris_MD · 12-15-2021, 06:47 PM

Quote:

Originally Posted by meremortal

Yes.

And people in this forum, are ok with that?

meremortal · 12-15-2021, 08:57 PM

Quote:

Originally Posted by Chris_MD

And people in this forum, are ok with that?

I have no idea. I was just saying that not much has changed other than the form being submitted. Otherwise, people have been expected to do this on their own at the same amounts for years now.

ctujackbauer · 12-16-2021, 07:34 AM

Track your cost basis if you're considering selling a blu or digital copy, especially if you are near the $600 limit or the quantity limit.

You may have marked a payment as friends and family in Paypal/Venmo, but Paypal/Venmo might not have done the same on their side. With the IRS, you have to prove it if they question it.

Google Sheets is free.

Gretiem · 12-18-2021, 02:30 AM

Quote:

Originally Posted by Chris_MD

So the people in this forum, selling stuff, receiving payments electronically....when they hit $600 next year, they are getting a 1099-k form.

I believe ebay and paypal are doing it this year.

Chris_MD · 01-18-2022, 01:02 AM

Quote:

Originally Posted by Gretiem

I believe ebay and paypal are doing it this year.

No, eBay made an announcement. Only sales in 2022 are applied to the new threshold. But some states, may already have adopted a lower threshold in 2021.

wkerdy · 02-01-2022, 01:06 PM

What? Is that even serious? That's stupid, I would understand a new law that would affect the big sellers, but the small ones, that's stupid. So, what if I sell some items online from time to time? Because of that, I'll have to pay such an insane tax? That's not normal. I just checked my eBay and Amazon accounts, and it seems like I had 178 transactions during the past year. I'll try to insert that data on the paystubs from https://www.paystubcreator.net/ and then calculate the tax I would have to pay. I'm sure I won't be happy.

InuYashaCrusade · 02-01-2022, 05:51 PM

Quote:

Originally Posted by wkerdy

What? Is that even serious? That's stupid, I would understand a new law that would affect the big sellers, but the small ones, that's stupid. So, what if I sell some items online from time to time? Because of that, I'll have to pay such an insane tax?

If you sell over $600 during the entire year then yes.

Bigdog · 02-01-2022, 07:56 PM

Quote:

Originally Posted by wkerdy

What? Is that even serious? That's stupid, I would understand a new law that would affect the big sellers, but the small ones, that's stupid. So, what if I sell some items online from time to time? Because of that, I'll have to pay such an insane tax?

87,000 new IRS agents have been hired since this time last year! So yes, it is serious, and the reason they go after the little guy is because there are millions of them to shake up and down!

IndyMLVC · 02-02-2022, 02:46 AM

Quote:

Originally Posted by SantanaJade

It was $20,000 until this year. Only certain websites reported at lower thresholds, or they had to because of 200 transactions.

It was the combo of both. It wasn't either.

meremortal · 02-02-2022, 03:28 AM

Quote:

Originally Posted by SantanaJade

It was $20,000 until this year. Only certain websites reported at lower thresholds, or they had to because of 200 transactions.

I mean at $400+ income individuals have been required for years to report on their own. Being under $20k/200 was never some kind of magical exemption from having to file/report.

beefytwinkie · 02-02-2022, 11:49 AM

I remember Valve would send out 1099's to those who made a certain amount of sales on the Steam Community Market. Somewhere down the line they changed their stance and said they will no longer send out tax documents and it was down to the user to take responsibility for reporting their own income.

jacks2start · 02-03-2022, 09:56 PM

Quote:

Originally Posted by RustinCohle

It's also only "goods and services" payments and doesn't include "friends and family." So you can still venmo your partner half rent, or your friends for dinner, or whatever and it won't count.

There's a bill being written/presented and moved up through the process in the congress and departments that is going to include the "family and friends" side of all payment processors, it want be long until there is no way around it.

RustinCohle · 02-03-2022, 10:51 PM

Quote:

Originally Posted by jacks2start

There's a bill being written/presented and moved up through the process in the congress and departments that is going to include the "family and friends" side of all payment processors, it want be long until there is no way around it.

Well that’s insane. Not every friends and family payment is trying to cheat the system. Could just be paying someone back $10 or $20 for movie tickets or dinner. Even if it’s more expensive like $500, it could just be half a rent payment.

ctujackbauer · 02-04-2022, 12:52 AM

Even selling an iPhone that is 3 years old can trigger a reporting requirement.

Track your cost basis in a free spreadsheet program like Google Sheets or (eek! a paid subscription) Excel.
Sell all the things.
Show the IRS spreadsheet with the cost basis and the price sold if it's questioned or audited.
Boom. Done.

Unless you're somehow selling blu-rays or retail goods at a pure profit. Then you'd want to Schedule C that stuff.

12-14-2021, 03:12 AM	#1
Chris_MD Banned Member since:Jul 2016	IRS Tax Law for Online Sellers - 1099k tax year 2022 Have you guys heard about this? If you sell stuff online or receive electronic payments, this news is for you: https://www.eseller365.com/new-feder...place-sellers/

02-01-2022, 01:06 PM	#12
wkerdy New Member Member since:Aug 2020 Location:England Little Lever	What? Is that even serious? That's stupid, I would understand a new law that would affect the big sellers, but the small ones, that's stupid. So, what if I sell some items online from time to time? Because of that, I'll have to pay such an insane tax? That's not normal. I just checked my eBay and Amazon accounts, and it seems like I had 178 transactions during the past year. I'll try to insert that data on the paystubs from https://www.paystubcreator.net/ and then calculate the tax I would have to pay. I'm sure I won't be happy. Last edited by wkerdy; 02-02-2022 at 12:05 PM.

12-14-2021, 08:02 PM	#2
Chris_MD Banned Member since:Jul 2016	Hello?

12-14-2021, 08:09 PM	#3
meremortal Blu-ray Champion Member since:Jan 2012 Location:Bedford Falls Trading Score:258	It's nothing new other than the third-party payment companies being required to report at a lower monetary amount than before. For individuals, the $600 number has been the same for years. If anything, this will probably make it easier for people since they'll send out forms to people and thus it'll be tougher to forget to do it yourself.

12-14-2021, 08:12 PM	#4
RustinCohle Blu-ray Ninja Member since:Mar 2016 Trading Score:238	It's also only "goods and services" payments and doesn't include "friends and family." So you can still venmo your partner half rent, or your friends for dinner, or whatever and it won't count.

12-15-2021, 01:09 AM	#5
Chris_MD Banned Member since:Jul 2016	So the people in this forum, selling stuff, receiving payments electronically....when they hit $600 next year, they are getting a 1099-k form.

12-16-2021, 07:34 AM	#9
ctujackbauer Blu-ray Ninja Member since:Apr 2016 Trading Score:4	Track your cost basis if you're considering selling a blu or digital copy, especially if you are near the $600 limit or the quantity limit. You may have marked a payment as friends and family in Paypal/Venmo, but Paypal/Venmo might not have done the same on their side. With the IRS, you have to prove it if they question it. Google Sheets is free.

02-02-2022, 11:49 AM	#17
beefytwinkie Blu-ray Guru Member since:Oct 2008 4K collection:13 Blu-ray collection:459 Trading Score:6	I remember Valve would send out 1099's to those who made a certain amount of sales on the Steam Community Market. Somewhere down the line they changed their stance and said they will no longer send out tax documents and it was down to the user to take responsibility for reporting their own income.

02-04-2022, 12:52 AM	#20
ctujackbauer Blu-ray Ninja Member since:Apr 2016 Trading Score:4	Even selling an iPhone that is 3 years old can trigger a reporting requirement. Track your cost basis in a free spreadsheet program like Google Sheets or (eek! a paid subscription) Excel. Sell all the things. Show the IRS spreadsheet with the cost basis and the price sold if it's questioned or audited. Boom. Done. Unless you're somehow selling blu-rays or retail goods at a pure profit. Then you'd want to Schedule C that stuff.

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