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1099K threshold changes for 2022 - drastically

m0t0_ryder

m0t0_ryder

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John
This may not apply to (m)any here but I thought it worthy of discussion... or awareness.

The IRS rules have changed in 2022 regarding the reporting of monies received through sales of items thru TPMO's.
Specifically in regards to Paypal, Venmo and other TPSO's (Third-Party Settlement Organizations).

A link to the Paypal press release ---> HERE

Basically the previous level for Paypal, Venmo and other "TPSO's" was to provide data to the IRS if you had accrued $20,000 of sales income per year.
It has now been changed to $600 per year. :wtf

Yep, the IRS wants more of your earnings. Even if it's for something that you've already paid taxes on once (when purchased).

So if you do a lot of reselling (for profit) get ready to hand some of it over to the US Gov.
Keep an eye out for the 1099K if you fall in this category.

How to avoid?
Barter in cash!
 
If you're selling something for profit, particularly original items you made, then yeah you should be paying taxes on that...just like anyone else had to do since, well, forever...before the days of TPSOs. None of this is new. The IRS is just clamping down on the loopholes people have been hiding behind for years.

However, I'm really glad that this will take affect against those assholes known as "flippers" who are fucking scum. Taxing them on their profiteering is the least that can happen that is decent. Good riddance.
 
Kornholio said:
If you're selling something for profit, particularly original items you made, then yeah you should be paying taxes on that...just like anyone else had to do since, well, forever...before the days of TPSOs. None of this is new. The IRS is just clamping down on the loopholes people have been hiding behind for years.

However, I'm really glad that this will take affect against those assholes known as "flippers" who are fucking scum. Taxing them on their profiteering is the least that can happen that is decent. Good riddance.
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Yup. I'm pretty sure the main reason they are making this change is to crack down on things that are explicitly illegal. trafficking, drugs, whatever else. However, this also making sure scalpers, or people running off the books businesses, or whatever else pay their taxes is a good thing.

This is also, like, the the 3rd or 4th thread on this issue, I think.
 
OH Crap!!

I pay all of the bills/food/everything at our home. My Wife pays me (we jokingly call it her "Rent") via Paypal. I may put a stop to that. She used to pay me cash, but she started using PP for the convenience.

UPDATE- I just read the link that Moto Ryder included. It states that it is for 'Goods and Services". My fear is that the IRS may think that my Wife sending me $600 in now taxable.
 
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lefty said:
OH Crap!!

I pay all of the bills/food/everything at our home. My Wife pays me (we jokingly call it her "Rent") via Paypal. I may put a stop to that. She used to pay me cash, but she started using PP for the convenience.

UPDATE- I just read the link that Moto Ryder included. It states that it is for 'Goods and Services". My fear is that the IRS may think that my Wife sending me $600 in now taxable.
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You do transfers with your wife through PayPal? You don't bank at the same institution?
 
JesasaurusRex said:
You do transfers with your wife through PayPal? You don't bank at the same institution?
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Nope. We have separate bank accounts. We got married in our 50's, so we had lives long before we met each other didn't feel the need to merge everything together.

I know that she is good with her $$, and I'm good with mine, but I would never merge accounts. I did that with a live-in girlfriend waaaaaaay back in my 20's. That was a disaster.
 
Wasn't talking same accounts, you can normally same day transfer if it's within the same banking institution afaik. Say both of you have accounts and BofA for example but separate accounts.
 
Sounds great. This makes me happy. I'm glad they're going after what is really harming our nation, $600 of undeclared income at a time. These no-tax-paying scums are a scourge on our society and must be dealt with.


Also
Analysts determined that the 55 companies, all part of the S&P 500 or Fortune 500, would have paid a combined total of $8.5 billion last year if they had paid at a 21% rate (the statutory federal corporate tax rate) on their profits.

Not only did they avoid paying any taxes on their profits, but these companies also received $3.5 billion in tax rebates, according to ITEP, a left-leaning, non-profit research group that analyzed each firm’s annual financial reports.

Tax breaks for executive stock options, a provision allowing companies to write off capital investments, federal research and experimentation credits, and tax breaks for renewable energy were some of the legal deductions and exemptions utilized by these businesses to reduce their tax bill dramatically.

26 of the 55 companies, including Nike, which reported more than $2.8 billion of pretax income last year, and FedEx, which generated $1.2 billion, avoided paying any federal income tax in each of the past three years, according to the report.

In an emailed statement to Forbes, a FedEx spokesperson said, “The CARES Act, which was enacted in March 2020, helped companies like FedEx navigate a rapidly changing economy and marketplace while continuing to invest in capital, hire team members, and fund employee pension plans.”

https://www.forbes.com/sites/tommyb...d-no-federal-taxes-last-year/?sh=804407e21d3b
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I'm wondering if they'll try to tax me when I loan someone money and they pay me back. My nephew ran into an issue when he was in Africa and needed two thousand bucks for about a week. Being the nice aunt and uncle that we are, we sent him the money using Venmo and he paid us back within a week, no interest.

My bigger concern is if I'm going to have to start documenting stuff like that.
 
auntiebling said:
paypal at least has a "family and friends" category which may not count toward the taxable threshold?
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I hope not. Imagine all the roommate situations with shared rent and bills. I recently had my roommate start paying by check just to avoid it.
 
ScottRNelson said:
I'm wondering if they'll try to tax me when I loan someone money and they pay me back. My nephew ran into an issue when he was in Africa and needed two thousand bucks for about a week. Being the nice aunt and uncle that we are, we sent him the money using Venmo and he paid us back within a week, no interest.

My bigger concern is if I'm going to have to start documenting stuff like that.
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I make notations on every money transfer or paypal usage, even if it's just "gift to XX" or "loan to yz."
 
I go old school

cash.gif
 
I got a notice from Ebay about the $600 limit. I purchased a Battleborn Battery bundle for my RV. Came with a 3000w inverter I did not need. Sold the inverter on Ebay for $910, $825 net after Ebay fees and sales tax. Saved my receipt that shows a cost of $1200 for the inverter. Bet I can't write off the loss.
 
lefty said:
Sorry. I misunderstood.

Separate Banks too.
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You can setup a bank account at her bank (or vice versa) and she transfers money from her main bank to that account, and then from there to your main. It adds delays to processing but at least it automates it.
 
CABilly said:
Sounds great. This makes me happy. I'm glad they're going after what is really harming our nation, $600 of undeclared income at a time. These no-tax-paying scums are a scourge on our society and must be dealt with.


Also
Click to expand...

Can't have those politicians losing their big corporate donors now, can we....
 
Did a lot of housecleaning last year and received a 1099-k letter from eBay. I'm sure I was negative overall, but some items were things I've had for years, bought on CL or whatever, of which I have no proof of purchase. Either way, they were definitely not transactions for any type of business purpose. I assume the below means...ignore it?

https://www.irs.gov/businesses/understanding-your-form-1099-k

What should I do with this information?
It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K. You must report on your income tax return all income you receive from your business. In most cases, your business income will be in the form of cash, checks, and debit/credit card payments. Business income is generally referred to as gross receipts on income tax returns. Therefore, you should consider the amounts shown on Form 1099-K, along with all other amounts received, when calculating gross receipts for your income tax return.
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