PayPal 1099-K changes

Discussion in 'Marketplace Discussions' started by markshan, Aug 23, 2021.

  1. vinylbuff

    vinylbuff Forum Resident

    Location:
    North Port Florida
    It looks like the $600 limit has been removed from the 2022 tax laws. I read a very long article where the original plan of reducing the $20K limit to $600 was going to produce undue stress on all the banking systems. It wasn't so much if you sold $600 that 1099 forms would be sent out, the way the proposed law read, every $600 or more transferred IN and OUT of your account would have to be reported to the IRS. One congressman on the finance committee recommended that the $20,000 limit should be raised to $40 or $50,000 or done away with completely. So it looks like the $600 limit has been canned.

    Now, this came from an article on MSN news, and when I read it, I should have saved it just in case I misinterpreted wrong, but I did not...:shrug:
     
    Chauncy, Dave, Shoes1916 and 2 others like this.
  2. Quakerism

    Quakerism Monk

    Location:
    Rural Pennsylvania
    The last I heard on a news report is that some lawmakers were targeting a $10,000 limit which if exceeded would trigger the 1099K reporting requirements. I’ve had some conversations with others who use the electronic platforms way more than I do and I’m not planning on changing anything. Any additional tax resulting from my hobby would be so small as to be nearly inconsequential.
     
  3. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    Do you have a link?

    Edit: nevermind, I didn't read your entire post before asking.
     
  4. 4-2-7

    4-2-7 Forum Resident

    Location:
    SF Peninsula
    Well not a 1099 because that's for earnings, but all banks in the US report withdraws or deposits of $10,000 and over to the Feds. This has been in place for many many years, I guess to see if someone suddenly might have gotten money illegally and out of their norm.
     
  5. Quakerism

    Quakerism Monk

    Location:
    Rural Pennsylvania
    vinylbuff and markshan like this.
  6. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    Read the thread.
     
  7. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    Of course The National Review is pushing their own agenda. I hope to find some more neutral coverage.
     
    pressureworld likes this.
  8. Quakerism

    Quakerism Monk

    Location:
    Rural Pennsylvania
    With all due respect, every reporter will introduce their own bias. You have to filter out anything that doesn’t meet your world view. But regardless, the central point is the that the bank reporting plan is definitely not a done deal.

    Would you be more comfortable with the U.S. Department of Treasury?

    Quote

    “Under the current proposal, financial accounts with money flowing in and out that totals less than $10,000 annually are not subject to any additional reporting. Further, when computing this threshold, the new, tailored proposal carves out wage and salary earners and federal program beneficiaries, such that only those accruing other forms of income in opaque ways are a part of the reporting regime.”

    FACT SHEET: Tax Compliance Proposals Will Improve Tax Fairness While Protecting Taxpayer Privacy
     
  9. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
    It is the bookkeeping nightmare that is the worst of it, not the taxes on small-time sales. And $600 was just a very oddly low point to start at. $10,000 seems a realistic target if they were going to make changes.
     
    markshan likes this.
  10. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    Of course I would. Thanks.
     
  11. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
    These articles both do not cover selling and payment platforms like is what Amazon, ebay, and PayPal which is the income we are discussing. Those articles are about wage earnings and that bank reporting to IRS, and not 1099 for small sellers afaict. PP is not a bank. Are we certain that the 1099k issue we small sellers face is the issue in the articles at all?
     
    markshan likes this.
  12. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    That's why I keep saying I'm not going to take anything for granted until I read the PayPal 2022 TOS.
     
  13. kwadguy

    kwadguy Senior Member

    Location:
    Cambridge, MA
    Tell that to the residents of grubby Massachusetts.
     
    zen archer likes this.
  14. Joseph.McClure

    Joseph.McClure Forum Resident

    Location:
    Memphis, TN
    Massachusetts wants & needs your money.
     
  15. kwadguy

    kwadguy Senior Member

    Location:
    Cambridge, MA
    True dat
     
  16. cdash99

    cdash99 Forum Resident

    Location:
    Mass
    Nothing keeps Massachusetts from collecting the money that they feel is rightfully theirs.
     
  17. Quakerism

    Quakerism Monk

    Location:
    Rural Pennsylvania
    The irony of that is not unnoticed.
     
  18. Chee

    Chee Forum Resident

    Location:
    Denver
    Massachusetts residents will be all over New Hampshire soon.
     
  19. Combination

    Combination Forum Resident

    Location:
    New Orleans


    This is most likely the MSN article that you read:


    Biden admin backs down on tracking bank accounts with over $600 annual transactions
     
    vinylbuff likes this.
  20. hvbias

    hvbias Midrange magic

    Location:
    Northeast
    I don't think that is accurate. I don't see MA residents uprooting their entire lives to move to NH just over a few hundred or thousand in taxes. MA residents have lake houses here but you still have to file based on your primary employment. NH is a significantly smaller state with fewer jobs than MA, it's just not going to happen.

    Additionally NH isn't all roses either, we have state capital gains tax. I'd gladly take sales tax and drop the Paypal/Ebay 1099 limit to even $1 to get rid of our state capital gains tax.
     
    uzn007 likes this.
  21. Joseph.McClure

    Joseph.McClure Forum Resident

    Location:
    Memphis, TN
    Those high tax states are worth it because they are really nice to live in.
     
  22. Dave S

    Dave S Forum Resident

    Some parts are nice places to live. Other parts not so much.
     
  23. markshan

    markshan Forum Resident Thread Starter

    Location:
    Pittsburgh, PA
    We sure are drifting off topic.
     
    uzn007 likes this.
  24. quicksrt

    quicksrt Senior Member

    Location:
    City of Angels
  25. Combination

    Combination Forum Resident

    Location:
    New Orleans

    Perhaps you might find this one more relevant, informative or productive - and yes, Paypal is specifically mentioned in it. Happy reading.


    NOT REAL NEWS: A look at what didn't happen this week
     
    Last edited: Nov 9, 2021

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