Tax Laws in 2022 are changing

[agent006140]

Originally Posted by mark2be

F you have your own website that accepts PayPal , won’t PayPal still 1099 you after 600.00 in sales ?

yes,if you accept payments under goods and services.
if it bothers you,then stop using Paypal when it reaches 599 and apply for your own merchant account or accept non electronic payments

[yankee]

Originally Posted by agent006140

yes,if you accept payments under goods and services.
if it bothers you,then stop using Paypal when it reaches 599 and apply for your own merchant account or accept non electronic payments

It is an IRS law, nit up to individual merchant accounts......

$600 is $600 no matter who process your credit card transactions.

[PepsiCoin]

Originally Posted by yankee

It is an IRS law, nit up to individual merchant accounts......

$600 is $600 no matter who process your credit card transactions.

agent and you are friends...

[mark2be]

Thank you guys is merchant acct ebay or PayPal ?

[mark2be]

Originally Posted by agent006140

yes,if you accept payments under goods and services.
if it bothers you,then stop using Paypal when it reaches 599 and apply for your own merchant account or accept non electronic payments

What’s the tax reporting for a merchant acct ?

[bjammin]

woohoo, so glad this POS biden got elected
the world is going to be so much better
the first dementia president
has more handlers than a horse running in the KY derby

[agent006140]

Originally Posted by yankee

It is an IRS law, nit up to individual merchant accounts......

$600 is $600 no matter who process your credit card transactions.

I am under the impression if you have a merchant account to accept credit cards,the merchant account provider (usually a bank) leaves it up to you to report to IRS .
Most established retailers accept credit cards via their own merchant account,their back office handles all the tax reportings,no need for the bank to step in,you dont think CIT,Synchrony,Amex etc will send 1099 to Walmart,TARGET or even a local retailer like a restaurant,drycleaner.

[agent006140]

Paypal is not our merchant account provider,Paypal has several merchant account providers to process our card transactions.
when we sign up with Paypal,we rely on Paypal to process our card transactions,they are all done under Paypal'sname ,as far as its providers are concern,all they see is Paypal,they dont know us,we are just subaccounts within Paypal.
when there is a chargeback,it hits Paypal and Paypal turns around and tells us there is a chargeback,if we skip town,Paypal eats the loss.
But most of the time,things go well and Paypal makes money,it charges us 30 cents transaction fee,but it pays 10cents ,so there is a 20 cents profit.
As for discount rate,we pay 2.9-4.4%.but it costs Paypal 1-1 1/4 % for domestic transactions and more for cross border transactions.
and then there is foreign exchange conversion,it makes some money there.
It does not earn interest on our balance,or at least this is what they told us.

[mark2be]

Originally Posted by agent006140

I am under the impression if you have a merchant account to accept credit cards,the merchant account provider (usually a bank) leaves it up to you to report to IRS .
Most established retailers accept credit cards via their own merchant account,their back office handles all the tax reportings,no need for the bank to step in,you dont think CIT,Synchrony,Amex etc will send 1099 to Walmart,TARGET or even a local retailer like a restaurant,drycleaner.

Com thanks can you get or have a ebay merchant acct?

[agent006140]

Ebay is not a bank,it does not offer merchant account,it is relying on Ayden to process our transactions.
Best is to talk to your local banker to find out what it takes to open a merchant account,it could ask you to open a business checking account with minimum balance say $1k AND monthly fee .
Then it will tell you how much it would charge you for your card transactions,like transaction fee of 10-15 cents plus a discount rate 1-2%,there could be minimum fee if they dont make at least $25 a month from you each month,there could be an annual fee of 99 dollars and of course chargeback fee if your customer files chargeback and you lose.
right now Paypal charges 20 dollars for chargeback fee,a bank could charge you more.
Then it also varies its fee depending on which card your customer uses,those with high perks would have higher fee.
best is to talk to your local banker to understand how it works,then go shopping for someone cheaper

[PepsiCoin]

Originally Posted by agent006140

Ebay is not a bank,it does not offer merchant account,it is relying on Ayden to process our transactions.
Best is to talk to your local banker to find out what it takes to open a merchant account,it could ask you to open a business checking account with minimum balance say $1k AND monthly fee .
Then it will tell you how much it would charge you for your card transactions,like transaction fee of 10-15 cents plus a discount rate 1-2%,there could be minimum fee if they dont make at least $25 a month from you each month,there could be an annual fee of 99 dollars and of course chargeback fee if your customer files chargeback and you lose.
right now Paypal charges 20 dollars for chargeback fee,a bank could charge you more.
Then it also varies its fee depending on which card your customer uses,those with high perks would have higher fee.
best is to talk to your local banker to understand how it works,then go shopping for someone cheaper

it's adyen not ayden

[mark2be]

Ok so you would need your own online website or can you incorporate ebay or Amazon ?

[ebaystealth1974]

If you run an actual business, this new law isn't even going to affect you. $20k/200 is rubbish numbers.

And if you DO fall under these numbers, you can have soooooo many deductions on the business side of the taxes that you end up at a severe loss. Which can be used to offset other incomes, or carried over to the next year. (depends what category the deduction is)

[mark2be]

that would help my question, what accts or payment processor do not have 600.00 tax reporting thresholds?

[ebaystealth1974]

Originally Posted by mark2be

that would help my question, what accts or payment processor do not have 600.00 tax reporting thresholds?

It's going to be federal law. ZERO processors will not report. You don't seem to be listening to the people trying to help you.

[agent006140]

Originally Posted by mark2be

Ok so you would need your own online website or can you incorporate ebay or Amazon ?

Believe it or not,AMZN one click can be used like Paypal to accept payment,its fee is like 15%,check it out

[wilburnet]

Outside of the USA Biden is now a laughing stock - come on, did you see the way he tripped 3 times going up the Air Force One stairs, its all over the UK and Europe media. its gaffe after gaffe with this one. Trump on the other hand was a safe pair of hands and would not raise taxes.

This $600 treshhold will be the death knell for many Ebay sellers, no more selling junk round the house

[HurricaneHuntr]

better keep those receipts!


its not 200/600 it's 600 FLAT.

I'm livid over this, because while i do report every cent of my ebay income, i do alternatively through many accounts. I can no longer use the many accounts method of running to 19k . Please note, i wasn't running them up to 19k to avoid anything, i keep track of it all, it's just filed under a single business instead of many different stealth names. I have no resolution but to link everything as they become MP eligible and hope like hell they don't get linked with the 1 ein.

[mark2be]

Originally Posted by agent006140

Believe it or not,AMZN one click can be used like Paypal to accept payment,its fee is like 15%,check it out

So no threshold

[agent006140]

Originally Posted by mark2be

So no threshold

you have to check it out yourself,
why would anyone pay 15%?
but my information is not most current

Originally Posted by yankee

You are 100% wrong.

ALL 3rd party credit card processors follow the same laws. ALL of them. It is the law for crying out loud.....

1099k for everyone who crosses the threshold no matter who that processor is.

are you saying WMT,TGT,KOHL,BBY all get 1099 from their processors like CIT,SYNCHRNY,AMEX?
I used to install financial systems for corporations,but they are manufacturers or financial service companies,I will call WMT accounting dept and ask them./

HERE it is-
external link
https://www.ecommercebytes.com/2021/...-about-1099-k/

[ebaystealth1974]

Originally Posted by Moscutter

better keep those receipts!


its not 200/600 it's 600 FLAT.

I'm livid over this, because while i do report every cent of my ebay income, i do alternatively through many accounts. I can no longer use the many accounts method of running to 19k . Please note, i wasn't running them up to 19k to avoid anything, i keep track of it all, it's just filed under a single business instead of many different stealth names. I have no resolution but to link everything as they become MP eligible and hope like hell they don't get linked with the 1 ein.

Someone that sells accounts should be plenty knowledgeable enough to run 1 or 2 accounts.

For the most part, people that need a bunch of accounts are either tax evaders, or sellers of phake items.

[yankee]

Originally Posted by agent006140

I am under the impression if you have a merchant account to accept credit cards,the merchant account provider (usually a bank) leaves it up to you to report to IRS .
Most established retailers accept credit cards via their own merchant account,their back office handles all the tax reportings,no need for the bank to step in,you dont think CIT,Synchrony,Amex etc will send 1099 to Walmart,TARGET or even a local retailer like a restaurant,drycleaner.

You are 100% wrong.

ALL 3rd party credit card processors follow the same laws. ALL of them. It is the law for crying out loud.....

1099k for everyone who crosses the threshold no matter who that processor is.