The impact of a $600 taxable threshold on the hobby

[docile tapeworm | 4,194]

3 minutes ago, Mega Tank said:

Did you claim that blasted Tetris cart as a loss?

It was already worthless 

[docile tapeworm | 4,194]

Shit man that sucks now I’m getting a 1099. My knowledge on how to do taxes is fill out tax slayer with my w2.

[OptOut | 8,881]

4 minutes ago, docile tapeworm said:

Shit man that sucks now I’m getting a 1099. My knowledge on how to do taxes is fill out tax slayer with my w2.

Lul, Americans be all like "MAH TAXES!!!"

[Mega Tank | 955]

7 minutes ago, docile tapeworm said:

Shit man that sucks now I’m getting a 1099. My knowledge on how to do taxes is fill out tax slayer with my w2.

Don't forget that this year you have to fill out that new form for 2022. Here, check and see if it applies to you.

 

https://www.tomorrowtides.com/the-tax-form-many-will-forget-to-fill-out.html

[docile tapeworm | 4,194]

@Bonanza125 so can I just add the 1099 to my w2? I’m not gonna waste my time 

4 minutes ago, Mega Tank said:

Don't forget that this year you have to fill out that new form for 2022. Here, check and see if it applies to you.

 

https://www.tomorrowtides.com/the-tax-form-many-will-forget-to-fill-out.html

Dude….I already knew, literally as soon as I hit it, and you still got me.

Edited April 18, 2022 by docile tapeworm

[docile tapeworm | 4,194]

Can I just take the hit on whatever they send as the gross amount? What I mean is I’m not trying to be like “hey I got fee here's the proof, hey I paid to ship here’s the proof…” 

Edited April 18, 2022 by docile tapeworm

[Tanooki | 4,929]

2 hours ago, docile tapeworm said:

@RegularGuyGamer I thought you only get reported if you make over $600 on any platform? If I make $500 on eBay will they report my earnings? Who is putting together that I made $500 on eBay and $500 on mecari if neither reports me for going over the $600?

Yes it is that.  The $600 comes from any form of digital payment, and it's not like Paypal talks to cashapp and they talk to facebook market who rats you out to Mercari.   Ebay etc reports the full amount not what you get after expenses.  They're assholes.  They report totality of what is collected to the IRS.  They report the final amount the buyer sends you which includes taxes, final value fees, shipping, everything.)  So if you sold an item for $100 but it was $15 shipping and then the FVF and taxes on top push it to $120, they report $120 not $100.  Personally if I shoved items on ebay this year I'd stop once I hit like $450 because they're dicks.

Technically if I wanted to and I did look into it, I could spend up to a point on ebay since that went into an online only checking acct, and then I could spend up to another 600 and take payments into paypal(which is also venmo) and nearly double the intake before getting 1099k forms.  If either or both went over 600 then I'd get a 1099k from ebay and another from paypal.

Furthermore, on digital, if you're using paypal, etc if you use friends and family it's not tracked either, they only report those done as goods and services.  I wasn't certain but made a friend recently who does a lot of minor to hardcore console recovery and repair work and has an online business with it.  He looked into it because he didn't want to be doing friends and family trades or favors or getting like split bills on rents/util and getting screwed so that's how I know that one now when I couldn't figure it out when we talked a lot about this last year.

 

Personally I closed up shop on ebay as I said I would, it's done, until someone can figure this shit out, correct the insulting low rate, or auto-collect the taxes up front as it's not worth the headache and losses.  I just jumped to facebook and cash only or digital F&F payments if necessary and given what I have offloaded this year around here I've done fairly nicely with that because it's more desirable stuff, but it is a headache since FB people tend to be time wasting wafflers.  When I get the cash I just take it to my bank, then after clear move it into paypal, and then into my actual online account which takes over a week which sucks but it is what it is.  I'm not selling regularly anymore, not worth it, and if something isn't more desirable I'll just take it to game exchange as the one here seems to give like 50% in cash and 60 in credit (far better than the gamestop like rates at half price.)

 

[docile tapeworm | 4,194]

What if I list $100 shipped. Free shipping. Would they report $100 +tax+fvf? 

[Tanooki | 4,929]

12 minutes ago, docile tapeworm said:

What if I list $100 shipped. Free shipping. Would they report $100 +tax+fvf? 

Yes, they don't care if it's shipping included or tacked on.  The total amount that comes in (winning big, shipping(or shipped), taxes, FVF) it's all rolled into a grand total they tell the IRS over $600.  So if you sell something that heavy/insured, that's your loss.   It's a big reason I haven't put a single item on there this year at all because I really don't want to bean count out what they'll report vs what I'll get.  I probably eventually will do a few specific items worth a decent amount not worth dumping locally, but I'm in no rush.

[fcgamer | 4,719]

14 hours ago, OptOut said:

Lul, Americans be all like "MAH TAXES!!!"

Hahaha that's actually a good idea, maybe Optie would be willing to receive payments for my sales for a 10 or 15% cut. 

[MrWunderful | 2,926]

I made 10k on ebay last year and got F*cked by the IRS. 
 

No dinner, no kisses. Just face down in the back seat of a dirty 92’ civic hatchback and kicked to the Curb. 
 

Thanks Trump!

[Tabonga | 2,313]

FYI (for whoever cares) - This lovely bit of malicious* legerdemain was part of the American Rescue Plan Act of 2021.

https://www.twrblog.com/2021/03/american-rescue-plan-act-clarifies-scope-of-form-1099-k-reporting-and-reduces-de-minimis-threshold

It was passed in early March of that year on an almost totally party line basis - one Democrat member of the house voted against it and one Republican was absent for the vote. It passed the  Senate on strict partly lines with all members voting.

President Joseph Robinette Biden Jr. signed the bill on March 12, 2021.

*Which popular sentiment on this sentiment  seems to indicate.

Edited April 18, 2022 by Tabonga

[JamesRobot | 5,786]

54 minutes ago, MrWunderful said:

Thanks Trump!

 

15 minutes ago, Tabonga said:

President Joseph Robinette Biden Jr. signed the bill on March 12, 2021.

 

[MrWunderful | 2,926]

21 minutes ago, Tabonga said:

FYI (for whoever cares) - This lovely bit of malicious* legerdemain was part of the American Rescue Plan Act of 2021.

https://www.twrblog.com/2021/03/american-rescue-plan-act-clarifies-scope-of-form-1099-k-reporting-and-reduces-de-minimis-threshold

It was passed in early March of that year on an almost totally party line basis - one Democrat member of the house voted against it and one Republican was absent for the vote. It passed the  Senate on strict partly lines with all members voting.

President Joseph Robinette Biden Jr. signed the bill on March 12, 2021.

*Which popular sentiment on this sentiment  seems to indicate.

 

5 minutes ago, JamesRobot said:

 

 

Look up the SALT tax cap that Trump signed in 2017.  Thats what screwed me, not the 600$ threshold. 
https://www.bloomberg.com/news/articles/2021-04-12/all-about-salt-the-tax-deduction-that-divides-u-s-quicktake

 

I could see how that wasnt clear from my first post. 

[Tabonga | 2,313]

1 minute ago, MrWunderful said:

 

Look up the SALT tax cap that Trump signed in 2017.  Thats what screwed me, not the 600$ threshold. 
https://www.bloomberg.com/news/articles/2021-04-12/all-about-salt-the-tax-deduction-that-divides-u-s-quicktake

 

I could see how that wasnt clear from my first post. 

Especially since this thread is pretty much specifically about the new reporting requirement.

For purposes of this thread can we agree that "Let's go Brandon" is much more appropriate - I don't think anyone here is happy with this situation are they?

GROUP HUG!!!!

 

 

[MrWunderful | 2,926]

3 minutes ago, Tabonga said:

Especially since this thread is pretty much specifically about the new reporting requirement.

For purposes of this thread can we agree that "Let's go Brandon" is much more appropriate - I don't think anyone here is happy with this situation are they?

GROUP HUG!!!!

 

 

Kindly Stick that  “lets go Brandon” shit up your ass. 
 

Because my SALT deductions are capped, the extra money i made via eBay affects me more. So its relevant. 
 

And i will gladly pay more in Taxes as long as we dont have that low IQ conman bag of garbage (Trump) in office. So yes I am OK with that 1099. 

 

 

[Tabonga | 2,313]

Just now, MrWunderful said:

Kindly Stick that  “lets go Brandon” shit up your ass. 
 

Because my SALT deductions are capped, the extra money i made via eBay affects me more. So its relevant. 
 

And i will gladly pay more in Taxes as long as we dont have that low IQ conman bag of garbage (Trump) in office. So yes I am OK with that 1099. 

 

 

Truth hurts doesn't it? ???? *

 

Money made last year was made under Biden and  taxed (this year under Biden). Legislation could have been passed to address that.

*And  I  am  glad  to see your vocabulary is so intricate.

 

[MrWunderful | 2,926]

8 minutes ago, Tabonga said:

Truth hurts doesn't it? ???? *

 

Money made last year was made under Biden and  taxed (this year under Biden). Legislation could have been passed to address that.

*And  I  am  glad  to see your vocabulary is so intricate.

 

Intricate enough to where you obviously don’t understand that Trump screwed those of us took advantage of the SALT. Since 2017. Compounded by Bidens legislation. If I could still write off the full amount of SALT, this 1099 wouldnt effect me as much (or at all). 
 

But I will stop the back and forth with you, because its going to devolve into more obscure old timey sayings and video clips. 
 

Good talk.  

[Tabonga | 2,313]

2 minutes ago, MrWunderful said:

 

Good talk.  

Sorta.

  *Unties right hand from behind his back.*

[docile tapeworm | 4,194]

Ok I have a question hopefully you all can help me.

For example I sold this on mecari with free shipping.

shipping cost me $3.75

will I get taxed on $50?

or some other amount?

Edited April 19, 2022 by docile tapeworm

[fcgamer | 4,719]

21 hours ago, MrWunderful said:

 

Look up the SALT tax cap that Trump signed in 2017.  Thats what screwed me, not the 600$ threshold. 
https://www.bloomberg.com/news/articles/2021-04-12/all-about-salt-the-tax-deduction-that-divides-u-s-quicktake

 

I could see how that wasnt clear from my first post. 

Well considering you're rich enough to be linking to an article behind a paywall....

[Tulpa | 3,488]

43 minutes ago, docile tapeworm said:

Ok I have a question hopefully you all can help me.

For example I sold this on mecari with free shipping.

shipping cost me $3.75

will I get taxed on $50?

or some other amount?

It's a little more complicated than what you'll get taxed on one item sold.

You get taxed on your total gross income minus deductions. So you add up all your wages and all your sales online (if you broke $600 total), then you deduct whatever you're deducting (if you take the standard deduction, you use that. If you're itemizing all your business expenses, child deductions, etc., you deduct all of that.) Then you're taxed on what is left over, your adjusted gross income (AGI.)

Likely you'll be taxed on the full $50 unless you're deducting all the (valid) business expenses associated with selling items on eBay. But you would have to document ALL those expenses, and then see if that is worth it. It might be if you sell enough and have enough expenses.

Edited April 19, 2022 by Tulpa

[a3quit4s | 4,092]

1 hour ago, docile tapeworm said:

Ok I have a question hopefully you all can help me.

For example I sold this on mecari with free shipping.

shipping cost me $3.75

will I get taxed on $50?

or some other amount?

You still also need to sell more than $600 on mercari to generate the 1099, all the reseller sites have separate 1099s it doesn’t get reported to a single one. 
 

you can also deduct what you paid for Pokémon yellow since you’d only owe taxes on profit. If you sold it at a loss you can deduct the loss from your AGI lol

[docile tapeworm | 4,194]

Ok so it seems like we are conflicted on what generates a 1099.

some say it’s your ssn.

others say each site will produce their own after $600 gross.

[Tulpa | 3,488]

20 minutes ago, docile tapeworm said:

Ok so it seems like we are conflicted on what generates a 1099.

some say it’s your ssn.

others say each site will produce their own after $600 gross.

The site monitors your sales and has your tax ID (which if you don't have a separate business tax ID is your SSN.) Once you hit $600, they generate two identical 1099-K forms. One goes to you, the other to the IRS.

Edited April 19, 2022 by Tulpa