New $600 IRS rule

[Buckhunter]

Does anyone know the facts on this new law, if you use friends and family on pay pal do you have to report it, is it a one time payment or a combined total at end of year, also just heard they extended it to next year, very confusing.

 

[enkriss]

They extended it from last year to this year. Anything over $600 is reported as 1099 taxable income.

 

[Bigterp]

My tax guy said it didn’t apply if it wasn’t payment for services or goods that are pre tax. @elk yinzer does this jive?

 

[Buckhunter]

Thanks, unbelievable, pay pal sent email wanting tax I’d number, didn’t respond, thought it might be a scam.

 

[Rutman]

We pay far too many taxes…. I will not be complying. They can cut back or cut out the Ukraine money laundering.


Sent from my iPhone using Tapatalk

 

[elk yinzer]

My tax guy said it didn’t apply if it wasn’t payment for services or goods that are pre tax. @elk yinzer does this jive?

It's much ado about nothing. It's to go after tax evaders and money launderers not random people selling their junk on the internet.

 

[elk yinzer]

They extended it from last year to this year. Anything over $600 is reported as 1099 taxable income.

It's a 1099k thats not income necessarily, unless it is.

You definitely might sell enough crap to draw attention though.

 

[ShooterMike]

It's much ado about nothing. It's to go after tax evaders and money launderers not random people selling their junk on the internet.

Gonna have to disagree on that one.

If you buy item X for $1000 with individual income which has already been taxed, and you sell it later for $750, you’ve taken a loss. With this IRS rule you would still be required to include that $750 as income, when it’s not.

 

[elk yinzer]

Gonna have to disagree on that one.

If you buy item X for $1000 with individual income which has already been taxed, and you sell it later for $750, you’ve taken a loss. With this IRS rule you would still be required to include that $750 as income, when it’s not.

No, that's false. A 1099 is an informational return. It's for the IRS to match against what you report on your return. In that case it's not income. But if say you build a guy a website for instance, it would be. Same exact 1099, two different tax treatments.

 

[ShooterMike]

No, that's false. A 1099 is an informational return. It's for the IRS to match against what you report on your return. In that case it's not income. But if say you build a guy a website for instance, it would be. Same exact 1099, two different tax treatments.

Wrong. I get a few 1099’s each year, and they each increase taxable income, thus affecting the amount of income my tax liability is based upon.

As you stated, it’s for the IRS to match what you report.

IRS receives your 1099 info from PayPal or whomever, but you don’t report it …. You’re committing tax fraud.

Semper Fi,
Mike

 

[GeoFish]

Following, I am totally confused about now. But I get confused easily.

 

[elk yinzer]

Wrong. I get a few 1099’s each year, and they each increase taxable income, thus affecting the amount of income my tax liability is based upon.

As you stated, it’s for the IRS to match what you report.

IRS receives your 1099 info from PayPal or whomever, but you don’t report it …. You’re committing tax fraud.


Semper Fi,
Mike

There are different 1099's. 1099NEC and Misc are indeed usually self employment income. 1099-k is not the same.

 

[ShooterMike]

There are different 1099's. 1099NEC and Misc are indeed usually self employment income. 1099-k is not the same.

You’re right, and they all are used to report different categories of monies to the IRS.

Answer this then …. By your logic, if it’s not income, then why report “goods and services” transactions by way of a 1099? Do you honestly think whatever type of 1099 it is is not used for affecting taxable income? Really?

If it’s not income then why does the IRS need to know?


Semper Fi,
Mike

 

[elk yinzer]

You’re right, and they all are used to report different categories of monies to the IRS.

Answer this then …. By your logic, if it’s not income, then why report “goods and services” transactions by way of a 1099? Do you honestly think whatever type of 1099 it is is not used for affecting taxable income? Really?

If it’s not income then why does the IRS need to know?


Semper Fi,
Mike

It's not my logic, it's just the tax law. Just read the FAQs, it's not all that complicated and covers most of this convo.

https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general#:~:text=If I get a Form,not be taxable to you.

 

[ShooterMike]

It's not my logic, it's just the tax law. Just read the FAQs, it's not all that complicated and covers most of this convo.

https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general#:~:text=If I get a Form,not be taxable to you.

Yeah, I don’t trust the IRS. You may be very well versed in tax law and accounting than I am, but I don’t buy it.

They’ve held off on requiring reporting again this year. Next year, maybe they’ll require it. And I 100% believe they’ll change the rules.

I don’t trust anyone who taxes me on what I’ve buy with already taxed money, taxes me to own it, and taxes me when I sell it. Scoundrels. Taxes are a crime


Semper Fi,
Mike

 

[elk yinzer]

Just trying to help I'll stop working for free now

 

[ShooterMike]

Just trying to help I'll stop working for free now

Well when does the 1099k become income, then?


Semper Fi,
Mike

 

[ShooterMike]

More to the point … consider how difficult it will become for the individual filer who needs to fill out and prove on another tax form, that an item was sold for a loss. The state of current taxation is criminal.


Semper Fi,
Mike

 

[BackSpasm]

I can’t believe that it’s only gonna cost us $10.99!

 

[Abishai]

Taxation is theft.