New $600 IRS Tax Laws for 2022

You forgot the third……

Baskin Robbins

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Great move!

Start making offers for books you’re watching. Ask for 20%-30% discount and post a link to the article in your message.

:slight_smile:

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You folks are pretty brave posting on a public forum to say you’re actively avoiding reporting additional income. Really wise move.

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article only mentions payment sites, i think ebay, etsy will still send 1099k

… aaaaaaaaaaaaaaand down come the listings… lol

From another site: December 23, 2022

eBay is pleased to report that the Internal Revenue Service has announced a one-year delay of the new $600 tax reporting threshold. As a result of this delay, which follows over a year of eBay Government Relations advocacy on behalf of the eBay community, only sellers who: 1) exceed the previous threshold of $20,000 and 200 transactions, 2) that were subject to backup withholding or, 3) whose states of residence have a lower reporting threshold will receive a Form 1099-K.

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I know Maryland is one of these states, but forget which are the others. But this link seems to list what each state requires.

Its up on CBS news site as well.

Yeah, CHU will try to maintain your privacy best we can but if there’s lawyers with subpoena involved, pretty sure we’ll be handing over what they want to avoid paying legal fees on your behalf. :flushed:

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I was more concerned with someone reporting members to the IRS.

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I’ve got my stuff in order but wouldn’t ever call-out or report anyone else. It’s hard work to get taxes straight.

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So it being “promoted”, I hope it get passed. Please do keep us informed.

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This is encouraging. Very very encouraging. $5K would seem to be much more reasonable than $600 (and yes, I am thinking outside of the comic world).

$600 could be one or two sales of something dopey like a used air conditioner and a table set/hutch for a calendar year
$5K is more consistent with a possible trend; generally speaking.

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ebay says this for me…

“You did not receive a form 1099-K for the 2022 tax year.”

:grin:

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Something I thought of recently. If I earn over $600 from Mercari this year and deposit that $600+ into my PayPal account, does that mean I’ll get a 1099-K from both for the same sales? Sort of like a double whammy I’d have to explain somehow?

This is assuming the requirement deferred into 2023 tax year hold.

No. If you make $600 in Mercari, you would get 1099’d from them. Since Mercari doesn’t directly deposit the money into PayPal, you would not get 1099’d from them. Only direct payments, a deposit is not a payment. Same way if you deposited into your bank account you would not get 1099’d from them.

When I went to remove a payment from Mercari it gave me the option to deposit into my PayPal account. I chose to send it to my bank instead because there was a fee associated with depositing into PayPal, equivalent to what PayPal charges for receiving payment for goods and services. So my suspicion was that’s how PayPal would treat it (good and services, vice friends and family”).

It wasn’t enough to meet the threshold anyway, but I’m curious if/when it does what will be reported in a 1099.

You likely know best because Maryland requires it of eBay, Mercari and PayPal anyway (had already adopted a $600 threshold years ago). That’s assuming you have been depositing Mercari earnings into PayPal all along (vice an actual bank).