Bad Paypal 1099

PeteyTwoPointOne said:
*Thinking out loud*

Could I still avoid being 1099'd for 2022 IF:

After I sell $599 this year via Paypal G&S, could I open a Venmo and sell $599? Open an ApplePay and sell $599? Open a Cash App and sell $599? ad inifinitum < or at least until the Apps that provide seller coverage are exhausted :p >

Also, I realize Venmo is owned by Paypal...are they gonna allow $600 each app -OR- a total of $600 on both before 1099's are issued?
Click to expand...

Yes, I believe that is the case. It's 600 at an individual service.
But, it's nonsense that we are all even having to have this conversation. I just hope the current folks in charge don't manage to push through their prior plan to make banks open their customer's transaction records to the IRS if you have over $600 in it.
Sure ............ to go after wealthy folks - lies - why is it just $600 then ......... that is not wealthy folks. Hopefully this won't happen, but we all need to keep in mind who wanted to do it (even if they don't get their way).

as below (copied and pasted from article):

WASHINGTON (SBG) — The Biden administration is facing growing backlash over a plan to provide the Internal Revenue Service with data on individual bank accounts with more than $600.

The proposal emerged as a way to recover some of the estimated $600 billion per year in unpaid taxes, largely owed by wealthy people and businesses, to help pay for President Joe Biden's Build Back Better social spending program. House and Senate Democrats are currently debating the measure as part of the budget reconciliation bill.
 
PeteyTwoPointOne said:
;) :p
Click to expand...

The difference may lie in if you are making money or not. No matter what you use, if you are making income , you are suppose to pay taxes. I think most of us are objecting to going through a bunch of crap for something we lost money on-and I certainly am with that thought.

Positive side -it may be a thorn in the flippers butt
 
Last edited:
Blues said:
It is correct that one cannot purchase a USPS money order with a credit card. (A debit card can be used.)

I know this because I send in a fee to the NC Dept of Justice for my LEOSA qualification credential annually, and when I have tried to purchase with a credit card, I have been advised that only a debit card may be used. (I don't use debit cards.)
Click to expand...

That seems to be the case even today: https://www.usps.com/shop/money-orders.htm
 
I implore folks who are thinking "I'll just note my purchase and sale prices, which is always a net loss at year-end, and not need to worry about tax stuff" to take a deeper dive into this topic. Hobby income is income. "My hobby is a business" allows you to do business stuff like count losses against revenue, but operating as a business carries its own complications and requirements.

For example, I would be concerned about filing taxes showing that an ostensible business selling knives always operates at a loss and never does any of these things that an actual business would do:

Here’s what taxpayers need to know about paying taxes on their hobby activities | Internal Revenue Service

Tax Tip 2021-94, June 30, 2021
www.irs.gov www.irs.gov

I'm not an accountant, I'd just hate to see any members get burned by a casual-seeming choice with potentially real consequences. :thumbsup: :thumbsup:
 
"From a knifemaker perspective, PayPal has been cracking down on makers using F&F for a year or two and as you suggest, it almost certainly will come under more scrutiny. As will folks trying to get multiple payments under $600 for one transaction, as I've already seen suggested."

My understanding is that it is CUMULATIVE. Meaning, any number of separate transactions that hits a total of 600+ gets whacked. I was also under the impression that PP G&S and PP F&F both counted towards this.

As far as money orders and cash; I have had really good luck with people on the internet so far. Only a few incidences, both with buyers a little shake on what they were selling. So, I wouldn't be opposed to accepting cash or MO, as long as I maybe had an in person (phone call) with the buyer or seller. In addition, I would send the funds or item USPS signature required, or deliver confirmation or something like that, and possibly look into insurance for it more.

I don't need instant gratification (though it's nice), and as far as "making money", I don't. Like most of us here, I buy something, then sell it for the same amount (or less) to fund something else. I'll be dipped in shit before I pay taxes on that, when I've already been severely bent over in other areas already.
 
NPT said:
"From a knifemaker perspective, PayPal has been cracking down on makers using F&F for a year or two and as you suggest, it almost certainly will come under more scrutiny. As will folks trying to get multiple payments under $600 for one transaction, as I've already seen suggested."

My understanding is that it is CUMULATIVE. Meaning, any number of separate transactions that hits a total of 600+ gets whacked. I was also under the impression that PP G&S and PP F&F both counted towards this.
Click to expand...

F&F will not count(at least for now) When used properly it is considered a gift.
 
rje58 said:
Yep, kinda like your
Catchy two-line posts!

Wait, they weren't THAT good, even 25 years ago! :D
Click to expand...
O yes
they was
they actually was giving money to use them :^D
Received few hundreds free moony, life was so good
 
Zulus said:
O yes
they was
they actually was giving money to use them :^D
Received few hundreds free moony, life was so good
Click to expand...

Er, sorry. I meant your posts. Weren't. That. Good. :D

Yeah, I got some 'free money' from PayPal back in the day, but I think it was somewhere between $10 and $25. If I would have submitted a bunch of different emails, I might could have racked up the numbers you mentioned. Have you been there, done that, got the shirt?
 
rje58 said:
Er, sorry. I meant your posts. Weren't. That. Good. :D

Yeah, I got some 'free money' from PayPal back in the day, but I think it was somewhere between $10 and $25. If I would have submitted a bunch of different emails, I might could have racked up the numbers you mentioned. Have you been there, done that, got the shirt?
Click to expand...
I were here some 20 years ago
But don't remember my handle :^D
But same cynic joker, I think
 
"The IRS is looking for those who use cash apps as a way to circumvent banks and traditional forms of income reporting. Current tax law, regardless of the new rule, requires anyone to pay taxes on income more than $600 regardless of where it comes from."

This is federal passed in to law to take into effect this year by the Biden administration. Im sure that has gotten covered by now.
 
Dadpool said:
I implore folks who are thinking "I'll just note my purchase and sale prices, which is always a net loss at year-end, and not need to worry about tax stuff" to take a deeper dive into this topic. Hobby income is income. "My hobby is a business" allows you to do business stuff like count losses against revenue, but operating as a business carries its own complications and requirements.

For example, I would be concerned about filing taxes showing that an ostensible business selling knives always operates at a loss and never does any of these things that an actual business would do:

Here’s what taxpayers need to know about paying taxes on their hobby activities | Internal Revenue Service

Tax Tip 2021-94, June 30, 2021
www.irs.gov www.irs.gov

I'm not an accountant, I'd just hate to see any members get burned by a casual-seeming choice with potentially real consequences. :thumbsup: :thumbsup:
Click to expand...
This link is very helpful, thanks for sharing! I think a lot of folks are thinking to just file a Schedule C but this might have them thinking otherwise.

I'm certainly no attorney either, but I'm fairly confident the essence of this new policy is not to make someone who buys a knife for $500 and sells for $400 to have to pay taxes on that sale, it's just a question of what is the "correct" way for us to honestly represent what we're all up to here when we file. I think the 1099s being sent are more about nudging people who are making an actual profit to feel more pressure to file their taxes properly. Now whether this triggers a whole lotta audits for folks like me who tend to sell knives at a slight loss to fund whatever new knives we want to buy, well that remains to be seen :) Whatever you do save all your receipts in case of the audit!
 
I was chatting with a Senator yesterday on the phone for some specialized consulting and info dumps.

Our conversation ended up drifting into a few things coming up.

Gov is gearing up to aggressively audit taxpayers. There will be new severe penalties, and no option for payment plans. Seizure is not only probable, but likely.

I personally think this is only one more brick in the wall that will lead to federal digital currency.
 
so heres a tangent now that the Gov't sees hobbies as income and business, what happens when theres a law suit over something like an injury with a knife you sold on eBay and liability insurance is needed in order to sell anything online.
 
So...are we also supposed to collect state sales tax and account for inventory when we sell a knife, or an old ashtray at a yard sale? That's it, I'm going back to the good old days of bartering chickens and fur pelts for goods and services.
 
r8shell said:
So...are we also supposed to collect state sales tax and account for inventory when we sell a knife, or an old ashtray at a yard sale? That's it, I'm going back to the good old days of bartering chickens and fur pelts for goods and services.
Click to expand...
Or just stop using “Goods and Services”
 
Last edited:
lobo9er said:
so heres a tangent now that the Gov't sees hobbies as income and business, what happens when theres a law suit over something like an injury with a knife you sold on eBay and liability insurance is needed in order to sell anything online.
Click to expand...
Which leads us to the reality that we have all been magically converted into businesses and have acquired all of the operating overhead without the corresponding tax relief. To your point, how would deduct your cost of coverage?

I suspect some type of new tax shelter format will come into play or we will see the swift demise of the big online auction sites, to be followed by the entire US economy. Usually, when you squeeze this hard your economy goes underground, and if the idea is to go to an electronic currency, then there is no longer a need for the US Dollar at all; since all transactions would be settled in the form factor selected by the various markets.

n2s
 
Last edited:
You must log in or register to reply here.
Back
Top