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  #1  
Old 05-21-2019
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Default Cut off line for taxes questions

Hey guys, I had a couple of questions about taxes.

I know that individually banks don't report to the IRS if your deposits to the banks are less than $10K a year. If I'm married would that threshold go up to $20K?

If I do surpass the limit when you report your $10K or $20K income for taxes do you have to send them individual receipts of each transactions that were made on ebay? or do I just tell them "This is how much I made" and just pay the equivalent taxes?

I do Ebay as a side job but up until now I've been only making sure I don't pass $10K a year but also I might hit above the threshold and was wondering if there was a way to avoid tax season next year or even if I have to if I had to send them receipts of every transaction.

Thanks in advance!
Best,
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  #2  
Old 05-21-2019
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Default Re: Cut off line for taxes questions

if you yourself aren't making over 20,000 and 200 transactions then you don't need to report your taxes PayPal will ask for a ssn tin or ein if you are getting close to the tax limit they are obligated to send you a 1099 if you need to report.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

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Originally Posted by bman707 View Post
if you yourself aren't making over 20,000 and 200 transactions then you don't need to report your taxes PayPal will ask for a ssn tin or ein if you are getting close to the tax limit they are obligated to send you a 1099 if you need to report.
Boy, have you ever been misinformed!
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

BANKS are required to report to the Fed every transaction $10k or more,it has nothing to do with your income or your marital status.
Car dealers,arent they supposed to report buyers who buy fancy cars with cash?
Paypal will send you a 1099K if you have 200 transactions AND $20k in sales.
But remember the gross $ on your 1099k does not exclude refund,returns,sales tax you collected,chargeback,disputes,when you report the gross,make sure you include such to come up with the net sales.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

Do you have to report your e business if you dont get a copy of 1099K?
Well,if you are ever audited by IRS and they start looking into your bank accounts,any deposits which is not your paycheck,SS check,insurance claims,inheritance could be your income and IRS would want to find out why arent you reporting them?
same with state sales audit,if they audit you to see if you are collecting sales tax,they would also look into your bank accounts,if it is a sale and you cant prove with the buyer ship to address that he is out of state,then he would think it is sold to a fellow state buyer and if you did not collect sales tax from him,then you pay his sales tax to your state.
State sales tax audit goes back 4 years,so you better save your sales records,if you accept payment via Paypal,your paypal activities would have his shipping address,you want to save it for 4 years.

Last edited by agent006140; 05-21-2019 at 01:39 PM.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

You bank has all sorts of reporting obligations today MUCH less than 10k on many transactions. If you are importing items, orders of $2500 are reported to the IRS

You are required by law to report ALL income no matter how small or where it came from.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

what do you mean by importing items?
importing goods from overseas vendors?
and pay with bank wiretransfer?
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Default Re: Cut off line for taxes questions

Quote:
Originally Posted by agent006140 View Post
what do you mean by importing items?
importing goods from overseas vendors?
Is there another kind? lol
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

Quote:
Originally Posted by agent006140 View Post
what do you mean by importing items?
importing goods from overseas vendors?
and pay with bank wiretransfer?
UPS, FEDEX, DHL by law has to report all imports of $2500 value to the IRS. It has nothing to do with banks.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

FYI if you get audited or if they get suspicious they can and will check what the banks show you making even if it's under the threshold.
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Old 05-21-2019
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Default Re: Cut off line for taxes questions

Quote:
Originally Posted by agent006140 View Post
what do you mean by importing items?
importing goods from overseas vendors?
and pay with bank wiretransfer?
Stop kissing that frog.

They do not turn into the realization of your dreams.

Not you specially but....

Misinformation is not going to help inexperienced users.

Be careful,eh.

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Old 05-21-2019
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Default Re: Cut off line for taxes questions

They dont have to wait to get suspicious,thats part of an audit,your bank accounts as the saying goes THATS WHERE THE MONEY IS.
As for carriers reporting import of $2500 or more,thats with US Customs,these carriers have customs brokers at airport preparing the paperwork before the planes landed to faciliate customs clearance.
USPS would collect the customs duty plus its own fee ,like 7-9 dollars when your postman brings it to you.
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Old 05-22-2019
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Default Re: Cut off line for taxes questions

Quote:
Originally Posted by agent006140 View Post
They dont have to wait to get suspicious,thats part of an audit,your bank accounts as the saying goes THATS WHERE THE MONEY IS.
As for carriers reporting import of $2500 or more,thats with US Customs,these carriers have customs brokers at airport preparing the paperwork before the planes landed to faciliate customs clearance.
USPS would collect the customs duty plus its own fee ,like 7-9 dollars when your postman brings it to you.
Well.....You are partial wrong again, as usual. They collect the importors EIN ir SS to report to the IRS.
Stop being a know it all. It makes you seem really dumb.
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  #14  
Old 05-22-2019
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Default Re: Cut off line for taxes questions

never say I know it all,I am just sharing my experience,on my end this is what happens to importer.
So carriers report my imports,big deal.
$2500 is not much .
they should raise it to $10K
are you sure it is IRS,not another govt agency/
IRS would not bother with what you bought,they care about what you make
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Old 05-22-2019
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Default Re: Cut off line for taxes questions

I dont think import data is going to help the agent do a better job,first not all importers get audited,if they do,they need to show cost of good sold,and thats where the vendor invoice comes in.
I can import 1 million dollars worth of merchandise and sold none,how is that going to make a difference on my tax return,unless I claim freight charge,custom duty,legal fees,as deductible business expense and that seems to be out of line with the size of my business/
who would benefit from import data,the number crunchers on gross GDP,domestic GDP ?
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  #16  
Old 05-22-2019
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Default Re: Cut off line for taxes questions

Quote:
Originally Posted by GreenBean View Post
Stop kissing that frog.

They do not turn into the realization of your dreams.

Not you specially but....

Misinformation is not going to help inexperienced users.

Be careful,eh.

I am asking you a question,not trying to answer a question.
The frog is alive and well,

Last edited by agent006140; 05-22-2019 at 12:56 PM.
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  #17  
Old 05-23-2019
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Default Re: Cut off line for taxes questions

Well,
If I ever get audited, how do I explain to the IRS about the names not matching with the deposits that are being done by paypal to my actual bank accounts. Also, if I have to report them every sales how does someone do that if the name of the person selling stuff is not matching with your actual name?
Also, would making deposits with mismatching names with paypal and your bank account alert the IRS also?
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  #18  
Old 05-26-2019
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Default Re: Cut off line for taxes questions

Bump Bump Bump Bump Bump Bump
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