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Tax Laws in 2022 are changing
 

https://ibb.co/nQ9dQpMAs you can see from the picture, this starts from January 1st onward. Republicans offered an amendment to have this removed from the bill and it was ignored and pushed through by the democrats. https://ibb.co/nQ9dQpM


What does this mean? Ebay/paypal etc... buffers requiring FULL tax id, are likely to start from $599 vs the now what 3-10k? Thank your local senator for this one.
https://i.ibb.co/6Dz9DQ0/sneaky.png

Re: Tax Laws in 2022 are changing
 

So they lowered $20k to $600 but didn't take out the 200 transaction rule?

Might be some hope. At least Cash app and other p2p money movers are still in the clear.

Re: Tax Laws in 2022 are changing
 

i believe the (b) says any transactions. At the same time. We will have to wait to see what the IRS actual description of it is. Because i can see this becoming confusing.

Re: Tax Laws in 2022 are changing
 

It is too early to come to any conclusion other than small business is under attack.

Re: Tax Laws in 2022 are changing
 

200 TRANSACTIONS and $600 makes no sense?
are you sure you are interpreting it right?
So I sold $1 million with 150 transactions,no 1099k?

Re: Tax Laws in 2022 are changing
 

That's why it's a flat $600

Re: Tax Laws in 2022 are changing
 

It will be just $600 like some states I am afraid

Re: Tax Laws in 2022 are changing
 

This won't change anything for people who sell on Amazon, Ebay and most other platforms. Managed payments and all similar setups already require full Tax ID at sign up. THese will likely be the only option by 2022. This will only affect people who do direct to paypal sales through their website and somehow managed to stay under the 200/20K in that venture.

There are much more concerning issues coming down the pipeline:

1) How much will this administration raise taxes
2) How much will they devalue the dollar. Just because you are making the same/more this year does not mean it has the same real purchasing power
3) What other regulations are coming down the pipeline that will hurt our businesses. Dems love regulation.

Not trying to fearmonger but I want everyone to be prepared.

Re: Tax Laws in 2022 are changing
 

maybe all the biden disciples from that megathread on here before the election can chime in and save us all

https://www.commdiginews.com/wp-cont...8/bidenMao.jpg

Re: Tax Laws in 2022 are changing
 

https://i.postimg.cc/Y0Mx1B1s/Untitled.png


Money printer really going brrr for the last year. WTH is even going on. :rip:


And this chart only shows up to 1/1/21. I wonder how drastically it went up with the Bidenbucks package.

Re: Tax Laws in 2022 are changing
 

so futuremogul88, you are saying in 2022 if one gives their social security number and stays under the 200/20,000 threshold ebay,etsy,amazon you will not receive a 1099?

Re: Tax Laws in 2022 are changing
 

That's the way it's worked for the last 2 decades but it's evidently changing. One of my MP accounts that I registered in late 2020 had about 500 sales but eBay didn't make me a 1099 for that account because I was under $20k.

The way I'm interpreting the OP, it's going from a 200/$20k reporting threshold to a 200/$600 reporting threshold. The bill is written in legaleze though so my interpretation is probably not right.

Re: Tax Laws in 2022 are changing
 

What about Etsy or Amazon they are not a 3rd party processor

Re: Tax Laws in 2022 are changing
 

Etsy uses the same processor as eBay. Regardless the rule is the same everywhere. You have to cross 200 transactions and $20k in volume to have a 1099 generated, under the old rules, federally. Several states have implemented lower thresholds and none of it will matter next year anyway thanks to this new law.

Re: Tax Laws in 2022 are changing
 

Amazon too? Same threshold for 2022?

Re: Tax Laws in 2022 are changing
 

Interesting.. it's always something new.

I remember the good 'ol days where you could open account after account without even clearing browser cookies or changing your IP address.

Re: Tax Laws in 2022 are changing
 

it is not up to amzn or any sales venue,what he is saying is that the only way you can get around this is to sell on your own website and accept Paypal,cash,money order,postal order or check.
then the only way IRS or state finds out is when the auditor comes calling,they will look at your bank account and see all the deposits .

Re: Tax Laws in 2022 are changing
 

Ok good point thank you

Re: Tax Laws in 2022 are changing
 

always use a bank account for your business,do not use it for anything else,when auditor comes calling,he will add up all your incoming deposits and figure they are all sales proceeds,you will have to prove otherwise.

Re: Tax Laws in 2022 are changing
 

Sounds like you gone through a Texas sales tax audit. Although a pain in the ass, not overly hard to deal with.

An IRS audit is altogether different. I much rather deal with the IRS than state DOR.

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

They already do now in a few states. Vermont, Virginia, Massachusetts to name a few.

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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

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

Re: Tax Laws in 2022 are changing
 

agent and you are friends...

Re: Tax Laws in 2022 are changing
 

Thank you guys is merchant acct ebay or PayPal ?

Re: Tax Laws in 2022 are changing
 

What’s the tax reporting for a merchant acct ?

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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.

Re: Tax Laws in 2022 are changing
 

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.

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

it's adyen not ayden

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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)

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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.

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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

Re: Tax Laws in 2022 are changing
 

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.