Discussion Forum: Thread 310797

 Author: galeatter View Messages Posted By galeatter
 Posted: Oct 12, 2021 20:04
 Subject: TAXES
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galeatter (1641)

Location:  USA, Tennessee
Member Since Contact Type Status
Oct 4, 2016 Contact Member Seller
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Store: Pickin' Parts
our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe.
 Author: galeatter View Messages Posted By galeatter
 Posted: Oct 12, 2021 20:05
 Subject: Re: TAXES
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galeatter (1641)

Location:  USA, Tennessee
Member Since Contact Type Status
Oct 4, 2016 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Pickin' Parts
In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe Biden.


third party network platforms like PayPal will be issuing forms and reporting
to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately,
they did make the clarification that this will only apply to things that are
categorized as “Goods or Services” as opposed the “Friends and Family” option
with PayPal.
 Author: popsicle View Messages Posted By popsicle
 Posted: Oct 12, 2021 20:22
 Subject: (Cancelled)
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popsicle (6048)

Location:  USA, Washington
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Feb 21, 2006 Contact Member Seller
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Store Closed Store: ConstrucToys
(Cancelled)
 Author: MrPetovan View Messages Posted By MrPetovan
 Posted: Oct 12, 2021 20:31
 Subject: Re: TAXES
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MrPetovan (156)

Location:  USA, New York
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Jun 2, 2019 Contact Member Seller
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Store: MrPetovan's Clearance Sale
Oh great, shipping is included in this then, which may put some folks over the
line even if they didn't sell for $600 of actual merchandise.

In Off Topic, galeatter writes:
  In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe Biden.


third party network platforms like PayPal will be issuing forms and reporting
to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately,
they did make the clarification that this will only apply to things that are
categorized as “Goods or Services” as opposed the “Friends and Family” option
with PayPal.
 Author: peregrinator View Messages Posted By peregrinator
 Posted: Oct 12, 2021 21:18
 Subject: Re: TAXES
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peregrinator (353)

Location:  USA, New Jersey
Member Since Contact Type Status
Jan 21, 2003 Contact Member Seller
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Store: Faber Family Bricks
In Off Topic, MrPetovan writes:
  Oh great, shipping is included in this then, which may put some folks over the
line even if they didn't sell for $600 of actual merchandise.

You have to report the income whether or not you get a 1099 from PayPal though.
 Author: MrPetovan View Messages Posted By MrPetovan
 Posted: Oct 12, 2021 22:31
 Subject: Re: TAXES
 Viewed: 66 times
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MrPetovan (156)

Location:  USA, New York
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Jun 2, 2019 Contact Member Seller
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Store: MrPetovan's Clearance Sale
Thank you for the tip!

In Off Topic, peregrinator writes:
  In Off Topic, MrPetovan writes:
  Oh great, shipping is included in this then, which may put some folks over the
line even if they didn't sell for $600 of actual merchandise.

You have to report the income whether or not you get a 1099 from PayPal though.
 Author: Tracyd View Messages Posted By Tracyd
 Posted: Oct 13, 2021 10:15
 Subject: Re: TAXES
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Tracyd (316)

Location:  USA, Texas
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May 29, 2003 Contact Member Seller
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Store Closed Store: Tracyd's
In Off Topic, galeatter writes:
  In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe Biden.


third party network platforms like PayPal will be issuing forms and reporting
to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately,
they did make the clarification that this will only apply to things that are
categorized as “Goods or Services” as opposed the “Friends and Family” option
with PayPal.

Anyone on this site taking payments under the Friends and Family category would
be committing tax fraud, I am not entirely sure why you would even bring tis
up in this setting.
 Author: galeatter View Messages Posted By galeatter
 Posted: Oct 13, 2021 13:51
 Subject: Re: TAXES
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galeatter (1641)

Location:  USA, Tennessee
Member Since Contact Type Status
Oct 4, 2016 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Pickin' Parts
In Off Topic, Tracyd writes:
  In Off Topic, galeatter writes:
  In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe Biden.


third party network platforms like PayPal will be issuing forms and reporting
to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately,
they did make the clarification that this will only apply to things that are
categorized as “Goods or Services” as opposed the “Friends and Family” option
with PayPal.

Anyone on this site taking payments under the Friends and Family category would
be committing tax fraud, I am not entirely sure why you would even bring tis
up in this setting.

not doing that. that section of post was a copy past so people would know the
rules. not to show how to get around them. besides then you wouldn't be
able to get the postal discount.
 Author: Cob View Messages Posted By Cob
 Posted: Oct 14, 2021 10:01
 Subject: Re: TAXES
 Viewed: 34 times
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Cob (3324)

Location:  USA, Missouri
Member Since Contact Type Status
Nov 18, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Cob's Brick House
   besides then you wouldn't be able to get the postal discount.

www.paypal.com/shipnow

You can ship a package to anyone with PayPal, regardless if they paid with PayPal.
This is very useful for buyers who pay with Stripe.
 Author: Cob View Messages Posted By Cob
 Posted: Oct 14, 2021 09:59
 Subject: Re: TAXES
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Cob (3324)

Location:  USA, Missouri
Member Since Contact Type Status
Nov 18, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Cob's Brick House
  
  third party network platforms like PayPal will be issuing forms and reporting
to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately,
they did make the clarification that this will only apply to things that are
categorized as “Goods or Services” as opposed the “Friends and Family” option
with PayPal.

Anyone on this site taking payments under the Friends and Family category would
be committing tax fraud, I am not entirely sure why you would even bring tis
up in this setting.

It is important to me that "Friends and Family" are excluded from the reporting.


I receive "Friends and Family" payments from my Family for reimbursement of Christmas
presents we go together and purchase for my parents or many other items. So
yes it is appropriate to bring up "Friends and Family" payments on the forum
and it is useful for others to know that "Friends and Family" payment types are
not included in the 1099.
 Author: Heartbricker View Messages Posted By Heartbricker
 Posted: Oct 12, 2021 20:38
 Subject: Re: TAXES
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Heartbricker (12231)

Location:  USA, New Jersey
Member Since Contact Type Status
Dec 29, 2008 Contact Member Seller
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Store: Heart Bricker
In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe.


These rules have been set long before the current administration took over, you
keep putting these messages both here and on other forums hoping to bait people
into political debate- you have constantly been given the facts which show that
you are obviously wrong so you ignore facts and try posting somewhere else.
What’s the matter? You annoyed your friends and family with political debates
so you moved on to engage strangers?
LEGO is our ‘Happy place’ - don’t soil it with political digs.
This is coming from someone who despises both political parties with the same
vigor; you just sound like some brain washed cult drone.
Peace
 Author: rab1234 View Messages Posted By rab1234
 Posted: Oct 12, 2021 21:20
 Subject: Re: TAXES
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rab1234 (651)

Location:  USA, North Carolina
Member Since Contact Type Status
Jun 15, 2018 Contact Member Seller
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Store: Blockbusting Bricks
You're supposed to be paying your taxes whether or not Paypal tells on you...


In Off Topic, galeatter writes:
  our fine federal govt has thrown in a rule for paypal or similar users. Used
to be a cap of $20,000 of goods and services would trigger a 1099. As of Jan
1 2022 it is now $600.00 Probably not going to affect me finacially just going
to be a huge pain in the butt doing all the paper work to show costs of doing
my lego business. Anyone else just seeing this information? Don't want
others to be shocked at tax time. Thank you Joe.
 Author: peregrinator View Messages Posted By peregrinator
 Posted: Oct 12, 2021 21:22
 Subject: Re: TAXES
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peregrinator (353)

Location:  USA, New Jersey
Member Since Contact Type Status
Jan 21, 2003 Contact Member Seller
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Store: Faber Family Bricks
In Off Topic, rab1234 writes:
  You're supposed to be paying your taxes whether or not Paypal tells on you...

Yep, I did not meet the threshold for getting a 1099 from PayPal last year but
I certainly reported those earnings on my return.
 Author: crxefx View Messages Posted By crxefx
 Posted: Oct 12, 2021 23:57
 Subject: Re: TAXES
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crxefx (1961)

Location:  USA, Wisconsin
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Jan 28, 2017 Contact Member Seller
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Store: A and R Brick
You may want to discuss this with your tax professional, rather than discuss
it in an online forum where all can read. If you are running a business, you
should be well versed in tax code and filings. An income is an income, to the
IRS..
 Author: jennnifer View Messages Posted By jennnifer
 Posted: Oct 14, 2021 09:18
 Subject: Re: TAXES
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jennnifer (2990)

Location:  USA, Illinois
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Store: Old Grey Bricks
In Off Topic, crxefx writes:
  You may want to discuss this with your tax professional, rather than discuss
it in an online forum where all can read. If you are running a business, you
should be well versed in tax code and filings. An income is an income, to the
IRS..

That is true for some, but I hardly think someone selling off some extra toys
here or unwanted household items on ebay would qualify as someone who is 'running
a business.' The $600 threshold is ridiculously low and unfair in my opinion.

Having a tax professional at one's disposal is hardly the norm.

Jen
 Author: cosmicray View Messages Posted By cosmicray
 Posted: Oct 14, 2021 09:59
 Subject: Re: TAXES
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cosmicray (3225)

Location:  USA, Florida
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Store: Cosmic Toys
In Off Topic, jennnifer writes:
  That is true for some, but I hardly think someone selling off some extra toys
here or unwanted household items on ebay would qualify as someone who is 'running
a business.' The $600 threshold is ridiculously low and unfair in my opinion.

IIRC, the $600 threshold has been on the IRS regs for quite a while. That PayPal
may be required to report it is new. If anything, the $600 needs to be inflation
adjusted upwards, based on when it was originally put into the IRS regulations.
Probably deserves to be somewhere between $800 and $1000 now.

If people are that turned off by this, they can always go back to checks and
money orders. PayPal/Stripe is convenient, and everyone wants convenience.

Nita Rae
 Author: peregrinator View Messages Posted By peregrinator
 Posted: Oct 14, 2021 11:38
 Subject: Re: TAXES
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peregrinator (353)

Location:  USA, New Jersey
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Jan 21, 2003 Contact Member Seller
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Store: Faber Family Bricks
In Off Topic, cosmicray writes:
  IIRC, the $600 threshold has been on the IRS regs for quite a while. That PayPal
may be required to report it is new.

There was definitely a $600 threshold for a 1099-MISC, PayPal issues a 1099-K
which had the $20,000/200 transaction limit. Now there is a $600 threshold for
the 1099-K as well, with no transaction limit. Now they might have been reporting
that income to the IRS anyway, but without issuing a 1099.
 Author: goldknight View Messages Posted By goldknight
 Posted: Oct 14, 2021 11:12
 Subject: Re: TAXES
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goldknight (2824)

Location:  USA, California
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Store Closed Store: SantaBarbaraBricks
In Off Topic, jennnifer writes:
  In Off Topic, crxefx writes:
  You may want to discuss this with your tax professional, rather than discuss
it in an online forum where all can read. If you are running a business, you
should be well versed in tax code and filings. An income is an income, to the
IRS..

That is true for some, but I hardly think someone selling off some extra toys
here or unwanted household items on ebay would qualify as someone who is 'running
a business.' The $600 threshold is ridiculously low and unfair in my opinion.

Having a tax professional at one's disposal is hardly the norm.

Jen

Yep—I agree. That’s why I have decided to quit selling for now and next year
—we will see what happens
 Author: Cob View Messages Posted By Cob
 Posted: Oct 14, 2021 10:06
 Subject: Re: TAXES
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Cob (3324)

Location:  USA, Missouri
Member Since Contact Type Status
Nov 18, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Cob's Brick House
In Off Topic, crxefx writes:
  You may want to discuss this with your tax professional, rather than discuss
it in an online forum where all can read. If you are running a business, you
should be well versed in tax code and filings. An income is an income, to the
IRS..

Sometimes people don't even know where to start looking for tax advice or
what questions to even ask. Why discourage sellers from asking questions to
a community who has a very wide depth of knowledge?