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  #1  
Old 03-18-2021
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Default Tax Laws in 2022 are changing

As 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.


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.

Last edited by HurricaneHuntr; 03-18-2021 at 10:16 AM.
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Old 03-18-2021
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Default 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.
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Old 03-18-2021
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Default Re: Tax Laws in 2022 are changing

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Originally Posted by phaz0rz View Post
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.
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.
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Old 03-18-2021
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Default Re: Tax Laws in 2022 are changing

It is too early to come to any conclusion other than small business is under attack.
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Old 03-18-2021
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Default 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?
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Old 03-18-2021
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Default Re: Tax Laws in 2022 are changing

That's why it's a flat $600
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Old 03-18-2021
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Default Re: Tax Laws in 2022 are changing

It will be just $600 like some states I am afraid
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Old 03-18-2021
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Default 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.
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Old 03-18-2021
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Default 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

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  #10  
Old 03-19-2021
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Default Re: Tax Laws in 2022 are changing

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Originally Posted by Futuremogul888 View Post
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




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


And this chart only shows up to 1/1/21. I wonder how drastically it went up with the Bidenbucks package.
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Old 03-19-2021
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Default 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?
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Old 03-19-2021
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Default 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.
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Old 03-19-2021
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Default Re: Tax Laws in 2022 are changing

What about Etsy or Amazon they are not a 3rd party processor
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Old 03-19-2021
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Default 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.
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Default Re: Tax Laws in 2022 are changing

Amazon too? Same threshold for 2022?
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Old 03-19-2021
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Default 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.
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Old 03-19-2021
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Default Re: Tax Laws in 2022 are changing

Quote:
Originally Posted by mark2be View Post
Amazon too? Same threshold for 2022?
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 .
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Default Re: Tax Laws in 2022 are changing

Ok good point thank you
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Old 03-20-2021
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Default 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.
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Old 03-20-2021
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Default Re: Tax Laws in 2022 are changing

Quote:
Originally Posted by agent006140 View Post
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.
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.
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Default Re: Tax Laws in 2022 are changing

Quote:
Originally Posted by agent006140 View Post
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 .
F you have your own website that accepts PayPal , won’t PayPal still 1099 you after 600.00 in sales ?
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Old 03-20-2021
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Default Re: Tax Laws in 2022 are changing

Quote:
Originally Posted by mark2be View Post
PayPal , won’t PayPal still 1099 you after 600.00 in sales ?
They already do now in a few states. Vermont, Virginia, Massachusetts to name a few.
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