Discussion in 'Marketplace Discussions' started by markshan, Aug 23, 2021.
That is how I understand it.
Consider that there are many people who appear to be “able-bodied” with invisible disabilities that prevent them from working. My brother, for one. Getting his SSDI was anything but easy. There is fraud in the system, no doubt, but over-correcting for it makes accessing benefits for those who need them needlessly and painfully difficult. It’s a years long process filled with near-automatic denials, appeals, hearings before administrative law judges, and marshaling persuasive record evidence. Lazy people aren’t getting through that process easily.
But…..there is nothing that says PayPal or any other third party platform couldn’t voluntarily issue 1099’s for this tax year at the “new” threshold set to kick in for the 2022 tax year. Has PayPal made a public statement as to what they intend to do?
Because I am hearing that emails are being sent out to account holders who don’t have their SSN registered with PayPal. In fact, if you do a search in the “help” section of your account there is a statement regarding the new threshold and the requirement to verify TIN with PayPal and instructions on how to do it. For the hobbyist, that would be your SSN.
Okay ... @markshan, I've done some quick reading about SS fraud, and it appears you are correct. Only a tiny percentage of SSDI claims are fraudulent.
So ... it's that tiny percentage I am railing against.
I apologize for any ill feelings I have caused (to you and anybody else).
granted, but I would think it doesn't matter as the new LAW doesn't fall in to play until the 2022 TAX year...even with a 1099 this year the threshold would still be 20,000 before any 1099 would normally go out...right?
What I’m saying - and I don’t know the answer to this - is that if a third party platform like PayPal decides to get out in front of the new requirement for issuing 1099-K’s , couldn’t they simply go ahead and start verifying TIN’s for account holders who have transactional history indicating that 1099-K will likely be required…….and issue a 1099-K for 2021 transactions on goods and services so that they have a smooth transition for 2022?
And if they do - then the IRS is not going to disregard that information.
as of now Paypal no longer pays out Ebay sales...kind of moot now?
that makes the most sense...
We're cool. I just didn't want anyone to think it's an actual onslaught.
Yes, I regret using that 'onslaught' term.
Thanks for your cool response. I appreciate it.
Leaving EBay out of this for the present time. If PayPal decides to start issuing 1099-Ks based on the new threshold earlier than required by the IRS….in order to facilitate the transition, that might scuff up some hobbyists that have already exceeded the threshold for this year but thought they wouldn’t be affected.
I don't know of any reason that a company would spend the time and money to generate a bunch of forms that they aren't required to. Why would they? For kicks?
Paypal doesn’t have to generate forms, it’s all electronic on your account. If you want a paper copy, you have to request it. That’s my understand. And PayPal isn’t exactly user friendly especially during the last year and a half.
Well, bottom line is some states have already adopted the requirements and soon everybody will be participating in a research project which will clarify just how large the “gig” economy is and just how much the IRS is losing in tax revenue.
I’m not really going to be bothered by it because my tax burden is going to be negligible. But for those who have been under reporting their income up to $20K….they aren’t going to slip through the dragnet anymore.
Little hobbyist vinyl collectors and incidental sellers are just collateral damage in a war against gig economy workers.
yes I can see $20,000...
Is this for federal taxes? Tennessee doesn’t require residents to file taxes.
Sweet. I guess Tennessee residents don’t have to worry about it.
Maybe not state taxes. Everyone has to file Federal taxes.
So you have to file this income on state & federal forms? Man, the government needs some cash. I guess I only get ****%% once. instead of twice.
Actually, a lot of people are not required to file federal taxes.
Well, OK, yes, many people do not make enough to have to file. But being in TN does not exempt you from having to file Federal taxes if you make over the cutoff. Living in TN is irrelevant to the question of whether you need to file Federal taxes.
The thing with the 1099-K is that if it's over the Federal guideline ($12,400), you'll need to file a Federal return EVEN IF YOUR NET PROFIT WAS ZERO. You'll need to declare the cost basis on a Schedule C, and you can't do that if you don't file.
So if your gross proceeds were $12,401, and your cost basis was $12,401, so your net profit was zero, you'd still need to file a Federal tax return.
Can you read? I never said I didn't need to file federal taxes!
Dood? You made several short circular posts that don't seem to have any real continuity to them and then have the nerve to ask the guy taking his time to decipher them trying to help you if he can read?
I think you need to lay down with a cool compress on your forehead until the delirium passes.
Separate names with a comma.