| Discussion Forum: Thread 331423 |
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| | | Author: | sickofthis88  | | Posted: | Dec 10, 2022 09:44 | | Subject: | US tax requirements | | Viewed: | 147 times | | Topic: | Taxes | |
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| I was watching the news this morning. It seems that $600 instead of $20,000
is the new reporting level for income from paypal and venmo. Has anyone thought
about how this is going to affect Bricklink?
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| | | | | Author: | Caroline77 | | Posted: | Dec 10, 2022 10:24 | | Subject: | Re: US tax requirements | | Viewed: | 55 times | | Topic: | Taxes | |
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| In Taxes, sickofthis88 writes:
| | I was watching the news this morning. It seems that $600 instead of $20,000
is the new reporting level for income from paypal and venmo. Has anyone thought
about how this is going to affect Bricklink?
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Pretty sure it's been less than 20K for awhile now. I've had to file
for the last couple of years with sales closer to 6k. Unless my math is really
off and I hadn't been taking into account shipping fees, but I'm doubtful
that they were more than my actual sales.
PayPal sends a tax form and if you use a tax service like turbo tax, it was pretty
easy to put in. Unfortunately, I did not find an easy way to deduct costs of
business such as shipping fees filing myself using these prep services, so I
ended up finding a CPA and they did it for me.
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| | | | | Author: | jennnifer | | Posted: | Dec 10, 2022 10:25 | | Subject: | Re: US tax requirements | | Viewed: | 67 times | | Topic: | Taxes | |
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| In Taxes, sickofthis88 writes:
| | I was watching the news this morning. It seems that $600 instead of $20,000
is the new reporting level for income from paypal and venmo. Has anyone thought
about how this is going to affect Bricklink?
|
I believe this went into place last year. It will mostly only affect people who
weren't previously reporting their entire income. It's fairly intimidating
to set up all the accounting required if you haven't done it yet. People
who aren't tax-savvy will need some assistance from a paid professional.
And, yes, the threshold is way too low.
https://www.bricklink.com/messageThread.asp?ID=315293&nID=1321128
Jen
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| | | | | | | Author: | Caroline77 | | Posted: | Dec 10, 2022 10:29 | | Subject: | Re: US tax requirements | | Viewed: | 52 times | | Topic: | Taxes | |
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| In Taxes, jennnifer writes:
| | In Taxes, sickofthis88 writes:
| | I was watching the news this morning. It seems that $600 instead of $20,000
is the new reporting level for income from paypal and venmo. Has anyone thought
about how this is going to affect Bricklink?
|
I believe this went into place last year. It will mostly only affect people who
weren't previously reporting their entire income. It's fairly intimidating
to set up all the accounting required if you haven't done it yet. People
who aren't tax-savvy will need some assistance from a paid professional.
And, yes, the threshold is way too low.
https://www.bricklink.com/messageThread.asp?ID=315293&nID=1321128
Jen
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I do agree with Jen. $600 is absurdly low. I think the tax man caught wind
of popularity of "side hustles" and wants his piece, so now we all are paying
the price.
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| | | | | Author: | peregrinator | | Posted: | Dec 10, 2022 10:51 | | Subject: | Re: US tax requirements | | Viewed: | 84 times | | Topic: | Taxes | |
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| In Taxes, sickofthis88 writes:
| | I was watching the news this morning. It seems that $600 instead of $20,000
is the new reporting level for income from paypal and venmo. Has anyone thought
about how this is going to affect Bricklink?
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The reporting level for individuals and businesses hasn't changed (you have
to report all your income). What's changed is that PayPal, Venmo, etc. now
have to send you a 1099 if your income received from that source is $600 or more,
and report that to the gov't as well. But your individual responsibility
to report your income hasn't changed.
Those marketplaces that use their own payment processor are also affected.
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USA, Maryland
