So, All those years of depreciation, storage & preservation costs, & etcetera on my old Apple-Mac??. Why is it considered “income” & why am I even being TAXED if I sell my own property that I no longer need or want??. This is ludicrous. So, I paid sales tax on my old Mac, decide to sell it, & the IRS Considers it “income”???. Do I get to prorate the original sales tax & reassess it based upon inflation in todays dollars & off-set that off of the sales price?. Why should I report anything on my taxes on the sale of my old Mackintosh laptop this is unbelievable!!!. How is that “INCOME”???….When I’m simply converting my after-tax previous income dollars that went to purchase that Macintosh back into my after-tax dollars at a depreciated aspect???. Seriously…how is that somehow considered either “income” or “profit”?. So if I paid $2500.00 for my MAC (cost of goods) & sell it for $1500.00?? That means I actually LOST money -1000.00, right?. So when I factor in all the rent & utility bill off-sets (for storage & preservation)?, then I can off-set my GROSS W2 Income as a result??. THUS LOWERING MY GROSS INCOME BEING SUBJECT TO INCOME TAX. When are we all going to get our pitchforks??. Again how can selling the crap that I bought with my after-tax net income? Be considered income when I sell my crap whether or not I make my money back or I sell it for less than I originally paid for it?. This is an tyrannical egregious claw-back over reach.
It's only income if you sell it for a profit, they just have no way of seeing if it was a profit or not, which is where the tax return comes in to play.
@@HarryBallsich yes majority of sellers are tax cheats and tax evaders! now they will have to pay there fair share or start actually doing work and math and get there GROSS down to 0 or close to it if they don't want to do that work then they can stop selling online its that easy! im praying they all quit because of this revised law Less competition the better!
Great videos! What I call the "Golden IRS Rule": Income is income is income. Basically, ANY income is income, starting with $0.01. It's up to the taxpayer, not the IRS, to determine if their income is taxable income, or not taxable, and then to determine the tax owed on that income, if any. As a tax preparer for several years, that was the absolutely most common misperception that people had (and still have, I'm sure.) The second most common misperception was that there is only ONE person responsible for correctly figuring your taxes for the year, and that is YOU, regardless of who prepared your tax return for you, if you didn't do it yourself. There is no playing a game of "he said, she said" with the IRS!
the fact that they're gonna charge resellers that probably aren't making enough to even pay taxes...this is disgusting..I didn't know I was supposed to record and report all these things. I don't have a "real" job because of major health issues that don't qualify for disability so there's no way I'd be able to afford these taxes because business isn't exactly promised or even consistent..
Well it may be delayed or so the politicians say but I think they have already done the damage and strong armed the businesses. I don't sell much on Poshmark but I went to make a sale and it say I had hit my 600 dollar limit for 1099-K and I could not make the sale until I filled out the form....so...
Yes good point! I didn't mention in this video how a few states have already lowered the thresholds, so these particular states will know about your sales.
Tiktok sent me a 1099 for $97! I kept getting mixed information on if i had to claim it or not since it was under $600. I went ahead and claimed it to be on the safe side now my refund has been stuck on accepted but still not approved since Feb 18th. Its never taken this long before and now I'm freakiing out.
I a, so glad I learned of this channel from My Reseller Genie. I have loved it but I’m not the best (or even close) at it for sure! I am subscribed and will be watching and learning all! Thank you so much for this!
I’m also an ebay reseller, I receieved an email awhile back (Oct 2023) in regards to “opt-in paperless form for 1099-K”, I did not opt in cause I was not aware about the email, so I emailed them and asked if they will send it through mail. I have not got any reply yet. I just want to ask, we don’t have to worry about it right?? We do not have to file??
Probably not to everyone, but it may be too late to reverse their systems processes. The same thing happened last year where even though the threshold got delayed, 1099 still got sent out.
Posh is locked in I had a sale that was going to just push me over the 600 dollar amount and I could not ship the sale until I did the 1099 fill out thing :) so yeah the IRS delayed it for another year just it's all political double talk they had already beat up all the online folks. So they had it all in place to go and when politicians said hey sure we will delay it another year...nada. I guess they will say we didn't force anyone to do it lol
What if I’m not a business but I book an Airbnb for myself and friends and they Venmo me their share? What if I sell tickets I’m not going to use on a secondary online seller for less or very slightly more than what they cost? What if my kids Venmo me reimbursement for their car payment I co-signed for and am the primary in the loan? These are all personal financial transactions that are not for profit.
As with selling your own old crap on eBay, but the irs will still want it all reported. Meanwhile, drug dealers taking millions in cash transactions won't get a second glance.
Reimbursements or gifts should all show as personal transactions on venmo rather than marked as business in which case they will not be included on any 1099s. However it's inevitable that it gets mixed up or blurred for some which will pose complications.
Correct zelle isn't subject to the same rules, and only the business transactions for the other processors should count for 1099s. That doesn't mean business transactions paid through zelle still shouldn't be reported.
I've felt jerked around by this the last couple of years. I was an online artist and because of this, I've done nothing. Zero dollars. Completely destroyed my freelance career. Yes, I'm salty about it.
I would love to sit down & discuss my side hustle. I'm a couponer & sell my stuff. 99.9% of my clients pay me via PayPal & Venmo. Not sure where to start with this :)
It all starts with tracking your activity. PayPal and venmo should have transaction reports you can download and compile into sales totals that you can use when it comes time to report your taxes. I highly recommend checking out Reseller Tax Academy which walks you through all the basics 👍🏼
I understand everything you said. I just have one question do you have to owe every tax year on when you file or does it depend on how much the amount you made of sales.??
Question? Thats this issue only affect folk that resell things or also get pay from nanny jobs, grass cutting, contractor work etc etc. In other words if iam getting pay regularly on a monthly basis with deposits more than 600 dollars on a weekly basis do i need to report this and file a 1099k or 1099r pleased help
I resell items in 2 platforms I received the 1099k from 1 but the other came really late when I already had my taxes done. The 2nd form is 606$ during the whole year so should I report it or not because I spoke with my tax advisor and he says don’t worry isn’t a lot. I hope you answer my concern.
I have a question, and maybe you have already done a video on this. So when I get my 1099 from ebay, that is the gross amount that I made, correct? (so shipping paid through ebay and ebay fees, etc haven't been deducted from that 1099 amount correct? what about sales tax that customers paid?) So what are all the possible itemized deductions from ebay that I can deduct from that amount? I dont want to miss or forget any when doing my taxes.
1099 includes gross amount, which means shipping income or what you charged for shipping is included. eBay Fees and Shipping fees you deducted later on the schedule C. I always put my eBay fees and shipping costs in part 5 of the schedule C, Other expenses. No, sales tax is not included in the gross amount of the 1099.
Also just wanted to say, I’ve been told you can put eBay fees in part 2 of the schedule c under commission and fees, but I always put them in part 5 under other expenses.
Hi I just have one question and hoping you can help me within the next 24 hours . It says I made 39k but only had 139!transactions , what would happen if I don't report it and do I need to report it ?
If you have a net loss you will not owe tax on that income. But you'll need to report it on your taxes so the IRS knows what your deductions are. Otherwise they'll try to tax you on the full amount shown on the 1099-K you receive.
You have some great videos…thank you! I know your video is about the 1099 $600 limit but hope you might not mind answering this 1099-NEC question. This year I became an Amazon Vine reviewer and they will send a larger 1099-NEC but I cannot sell any of the items for 6 months (March 2024). I have a couple of businesses, already sell on eBay, and file schedule C. It appears I will have to show this as income (over $6,000) for 2023. I do have a loss on my business so not horrible. Some of the items are broken or do not work and I am not sure how to deduct them from this year’s taxes. Then when I do sell some of the things on eBay next year, do I use Amazon’s value as the cost and just keep the sheet with all their values to prove it? I do not want to pay taxes twice. I have to do my sales tax forms very soon and those figures must be correct on there. Thank you!
My question is I have roughly 10k in sales in ebay mostly in high end golf equipment and some sports cards a lot of which I bought years ago some with cash some on ebay/paypal. I have no receipts from the past or a way of showing what I paid for this stuff. Do I use my best judgment to claim the profits/losses? I know what I paid for a lot of the items in my head but I know that the irs wouldn't care. I have everything written down from the past year as far as profits and losses after proceeds/shipping/fees but no receipts. Any recommendations? Also I have a trusted buyer that uses PayPal friends and family for purchases, do I got about that the same way?
Same. Im selling stuff technically at a loss but since I bought it years back I have no receipts to prove it. This is going to make me buy less stuff in general if it's going to be such a hassle to resell it once Im through with it.
I keep hearing $20,000 AND 200 transactions. You need both to get a 1099-K? For example if I sold on eBay $7000 and transactions over 250 would I get the 1099-k? Thanks!
That is technically below the threshold so the platform is not required to send a 1099. However many 1099s below thresholds are still being sent because these companies do not have all their ducks in a row.
Im just starting a new business receiving only commission after an online course has been purchased from students. I recently paid 2 different instructors with 500$ each. Do i need to report 1099NEC since its below 600$ threshold to 2 different instructors
Purchasing an online course would be product based rather than service based, and the 1099-NEC is typically for services rendered. So no need to report it, even if it were above $600. And you would look at them individually rather than the total.
I sold a few personal items on Poshmark in 2023. Gross sale for a year is $610 (net $530). I didn't get 1099-K. How do I need to do taxes in this case? I use Tourbo tax for my W-2. Where do I need to enter the Poshmark sales? Could you please help me with this?
To enter that activity you would need the self-employed version of TurboTax. You'll answer your total sales, your total cost of goods, and any other expenses incurred such as supplies, software, etc.
So if I sell less than $600 in year 2024, I will not receive a 1099-k form, but where would I report the extra income? For example, if I sell $200 for the whole year, where would I add that information for next year taxes? Thanks! Just want to make sure I am doing everything correctly!
For 2024 it's actually less than 5,000, so if you're below that you will likely not receive a 1099, but yes should still report any sales on your taxes.
@@notyourdadscpaok. Thank you. I know I called Turbo Tax and they told me that if I made less than $400 for the calendar year that I did not have to file since I am not a business and I am selling things as a hobby. I was just confused about this and just wanted to do everything correctly.
If you live in a state where eBay deducts and remits sales taxes for you would you still have to claim those sales as taxable or can you deduct the amount that was remitted from your sales?
In this case, ensure you report the gross income as reported. I would recommend listing the sales tax amount on line 48. This way, you'll get that deducted and it is listed for the IRS to see what you did. Just keep your financial statements (however you keep your books) around and accessible -- just in case you receive a letter asking for more information or to verify that you actually paid that amount out. But the big thing is to report the income as reported to the 1099 as that form goes to you and to the IRS. As always consult your tax professional as I provide only education here.
I have a question on the $600 irs rule, currently in 2024, If I receive payments over 600$, will I get a 1099-k form? I am confused if the rule is currently delayed or changed, so if it is currently delayed can somebody from my family send me more than $600 in cashapp without me getting a 1099-k form?
Yes the 1099-misc and now 1099-NEC thresholds have been $600 for a while. I don't know if it's a coincidence or not that they are now trying to use that number for the 1099-K, which is related to your online sales
just so viewers know that tax you pay for reselling is self employment tax which is FICA tax the same thing an employer would take out each check What is Self-Employment Tax? Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. Self-Employment Tax Rate The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). you don't complain when they tax it out of your pay check if your working a brick and mortar job people should just stop complain its the same thing we all have to pay our fair share to SOICIAL SECURITY and Medicare so current seniors who paid into the system all there working life can continue to get there Social Security checks every month and continue to get Medicare benefits! do you not care about your fellow senior citizens because all this whining and crying about paying Self employment tax sound like you don't!
The IRS and your state's DOR take their cuts too! Shoot, some cities charge income tax as well! It is not ONLY FICA! But the 1/2 that the employer pays out when we work a W2 is now on us as self-employed, yes!
@@hutchgold6530 BUT we are not talking about all that we are talking about the 1099k which is Self employment tax which is the following straight from the IRS What is Self-Employment Tax? Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. Self-Employment Tax Rate The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). Self Employment tax is different from Income tax so if you made $50,000 and had business expenses of $45,000 then your Net is only $5,000 and your Self employment tax to the IRS for FICA is only $765 and $5,000 is what you report on your INCOME Tax as your NET! people make a mountain out of a mole hill regarding self employment tax or !099k tax "But the 1/2 that the employer pays out when we work a W2 is now on us as self-employed, yes!" and since the GOVERMENT finally grew a brain and realized that the majority of resellers and gig workers are tax cheats and tax evaders and not paying there fair share into FICA (if you work for a brick and mortar there is no hiding from FICA) Bipartisan law makers realized lowering the thresholds that the platforms and companies are required to report Gross earns of sellers and gig workers will make more compliance with the tax laws especially when they know the platforms and companies are reporting them to the irs
@@bennystratton7734 a 1099K reports gross income/proceeds processed! the 1099K does NOT differentiate how someone fills out their Schedule C and/or Schedule SE! So, a 1099K recipient inputs the gross income made and then hopefully tracks all available expenditures (COGS and other expenses) so they can maximize their deductions to come out at their lowest possible NET income! This NET income is then pass through to the 1040 and is taxable income. This taxable income is subject to Federal income, state income (in most cases) and city income taxes (in some cities) and self-employment (both employee and employer). Although there is a place to get the 1/2 for the employer deducted on the 1040... but that is a little deeper. I'll stick with the returns we process for our major and minor clientele and let you handle the affairs here. Best of luck. I hope people do their own due diligence in reading and researching.
