As part of the American Rescue Plan, third-party e-commerce platforms like eBay, Poshmark, Mercari, Depop, and Tradesy will now have to issue a 1099-K tax form to anyone with a total revenue of more than $600 on their websites. In the past, the platforms only gave tax reporting forms to sellers who operated at a larger scale, those who brought in $20,000 in revenue and had more than 200 sales in one year.
Oh, right…..
I heard the US economist talking about this recently. They’re also going to go after Uber drivers and other gig economy workers who are earning a bit on the side.
This news probably caused a spontaneous emission in an unimpressive end-terrace, somewhere in Ely.
@BraveFart
I doubt it. He can’t have recovered yet from the emission all over his keyboard at being featured again in the Mirror.
Is this related to the Senile Gerontological Regime recently hiring 87,000 more tax men* and insisting they’d better know how to use guns?
*Fact check: independent fact checkers have determined that this is a lying lie from those Republican liars and also there’s no recession, global warming melted Alaska in 2004 and women CAN TOO have big floppy willies, bigots.
But Kutten-Cottrell and many other casual resellers might soon call it quits on their reselling hobby due to a new tax reporting requirement. They’re worried they’ll be forced to hire an accountant or even end up paying the government more taxes than they actually owe.
Good to see that neither Little Missy or the “journalist” have a clue.
1) There are people who are engaged in hobby activities that are also a source of income. These people must report this income on their tax return. The fact that the income comes from a hobby doesn’t matter.
2) If a taxpayer receives income from an activity that is carried on as a hobby (i.e., with no intention of making a profit), they must report the income they receive on Schedule 1, Form 1040. If the activity is carried on as a business, the most report their income on Schedule C, Form 1040.
Note that nothing has changed in actual tax law other than the requirements for reporting to the IRS by third parties.
If Little Missy was turning a profit on the sale of certain items, then she needs to report those profits on Schedule 1, Form 1040. Hobby profits and losses are not aggregated. Each transaction stands alone. Profits are reported and losses are ignored. Profits are calculated as sales price less taxable basis of the item and any incidental costs of the transaction.
If she wasn’t doing this in the past then, well, she wasn’t doing her taxes correctly.
This is a fucking nothingburger.
@Dennis
Not a nothingburger. We still have yet to find out why Biden is so fixated on people earning $50/month, rather than people involved in mass insider trading, like Paul Pelosi.
I mean, we know the answer to that, but still.
There’s also the added costs involved in a private company being forced to keep track of and email all of those additional users. Pretty sure they aren’t being reimbursed for that, and will just have to reach into their own pockets.
The real issue isn’t with the change/lack thereof in the amounts taxed, but with the insinuation by the President that these are the tax dodgers we need to worry about while the country’s on fire. As well as the fact they need private companies to help them with the dirty work.
The real issue isn’t with the change/lack thereof in the amounts taxed, but with the insinuation by the President that these are the tax dodgers we need to worry about
I would think that being a registered Republican will end up with you being on the priority list for a forensic audit too
@Flubber
I mean…Chase Bank, PayPal, Uber, GoFundMe, Amazon Web Services, etc. That’s without any of the government’s help.
And if Trudeau threatening to freeze our next-door neighbors’ bank accounts isn’t foreshadowing, I don’t know what is.
Yeah, it’s technically expanding enforcement of existing tax law, but practically, it’s going to make a whole lot more work for a lot of people, much like inflating people into higher tax brackets.
The government is addicted to tax monies and looking for a way to get more. The proper response is to say, “Fuck you, cut spending!”
As an aside, I have relatively simple taxes, not engaging in this sort of hobby. When the new Trump-era tax rates went into effect, I did quick back of the envelope calculation of what my taxes would have been under the old regime, which would have been a good $400 more for somebody making well under the $15/hr they think everybody should be paid at a minimum. So the idea that the Trump-era tax law only benefited the rich is bullshit on its face.
Only if you earn above $400K… this will not affect your current health insurance plan… two weeks to flatten the curve/the jab will stop disease, stop transmission… I was never in favour of lockdown… I never said vaccination would stop disease/transmission…. et cetera.
People fall for it all the time. Nowt s’queer as folk.