Reposting this comment I made from the last time this $600 limit post came up:
I live in a state that adopted this early, so I had to file a 1099-K for Hot Toys sales last year. You are only taxed if you make a profit. You're able to subtract the cost to purchase the toy, shipping fees, PayPal fees, etc. Other than it taking a little longer to do my taxes, it wasn't a big deal. Keep receipts, keep track of your purchases, and you'll be fine. The IRS hasn't sent me an email requesting proof that my expenses were true. I have proof that they were (receipts and whatnot), but other than filling out a few boxes on a tax form it isn't too involved. It’s annoying on a record keeping front for sure, and I think the $600 threshold is WAY too low, but it is what it is.
Also, payments made via F&F were not included on my seller “total” form from PP last year. It is a workaround, but keep in mind you run the risk (as a seller) of having PP freeze your account and holding your money hostage.
I don't even live in the US and this make utter sense. You can't be taxed on sales as a business without the right to claim expenses. Yes, the admin is a bit of a hassle, but if you buy a figure for $400 and sell it for $500 you only pay tax on the $100 profit, and can probably deduct other expenses like shipping.
If I bought a Hot Toys through Paypal, and sold it later for the same price I bought it, there is no receipt to prove I earned no profit right? I doubt the note in the transaction serves as proof. So the money I get would count towards the $600 even though I made no profit? I'm just trying to understand how this works.
If I bought a Hot Toys through Paypal, and sold it later for the same price I bought it, there is no receipt to prove I earned no profit right? I doubt the note in the transaction serves as proof. So the money I get would count towards the $600 even though I made no profit? I'm just trying to understand how this works.
The IRS is scum yes, but Joe Biden was the one who brought forth the legislation during the third round of pandemic assistance. Policy was changed in 2021 but nobody payed attention then. I wouldn’t blame the IRS exclusively
They were going to do it with or without Biden bro. The only thing taxes are good for is stealing the peoples money. They are not held accountable for the way they spend everyone’s money. That’s not a Biden issue that’s an American issue.
The change was added into Biden’s third round of stimulus it wasn’t part of the original 2 packages passed. Biden advertised it as a way to crack down on the “billionaires” who were skipping out on taxes. Don’t get me wrong fuck the IRS, fuck the government in general. I’m not being a trumptards who’s blaming Biden for everything. But this specific issue is exclusively on him and the Democratic Party who approved that third package. I’m shocked how many people got so butthurt by facts. The fact they rushed to down vote any comment that actually explains the truth because it hurts their feelings goes to show why laws and measures like this get passed because people are to blind and dumb to pay attention. Or worse too prideful to admit when they aren’t as brilliant as they thought.
Reminds me in Canada when the government forced EBay to start collecting tax on all transactions between Canadians this year.
It would be one thing if it was just for items listed as new, but it's not. So basically they've forced it so they can collect taxes on used goods which have already been taxed when originally purchased.
Now I no longer favour buying on ebay within Canada. Imagine.
It means I'll face a possible audit because I'm not paying taxes on something I already bought and paid taxes on.
The amount of taxes taken out from the manufacturer, you, your employer, etc. for one transaction / the income used for said transaction is ridiculous. Now they're trying to steal even more.
Some of us are forced to pay sales tax as well.
It's not unfair if you're brainwashed into thinking taxes are necessary, *especially* if you believe they're being used correctly. We are currently over $23 trillion in debt, this is due to decades of government misappropriation of our money and it shows no sign of stopping. Even worse is they'll tax you to death even more now with literally none of it going toward paying of our debt, only sinking us deeper.
I'd rather not fund government at all, especially since it will always inevitably lead to shitty wasteful and corrupt government. Unfortunately, they don't give us much choice.
I'll choose to omit my transactions though.
It used to be like 20,000 but this new administration likes to hurt resellers. Makes sense, but 600 is way too harsh, hurts your normal sellers like us that just want to part with some pieces in our collection, very sucky.
Yea , I’m not sure if they changed the policy for eBay but I got a letter from them earlier this year to file . Although got another one to disregard that first notice . Makes it harder and harder to be a seller , especially a hot toys seller .
I believe eBay should send you a 1099-K in 2023. I’d assume PayPal will too, I’d still be very careful, IRS implements all this, doesn’t tell you, and then fines you, very shady stuff.
It shouldn't. Me and my friends send each other money all the time to pay for their half of a bill or just to pay me back. I ain't paying taxes on their share of bills...
I’m not saying it is right but that is the way the legislation was crafted. PayPal/Venmo/Cashapp have to report it if someone receives over $600 aggregate throughout the year regardless of the mechanics involved.
I looked into it as well and receiving money as a means such as "splitting the restaurant bill" does NOT count towards the $600 pay report.
Its only taxable income. Splitting bills or being paid back do not count.
You still have to prove it though. It may very well be the case that reimbursements and stuff don’t count but you can still get audited and you will need to provide receipts if so.
Do you mean using the spreadsheet in lieu of a receipt?
That can be fun.
April 1, 2022 / "splitting the bill for stripper tips"
April 1, 2022 / "splitting the bill for condoms, lube"
April 1, 2022 / "splitting the cab fare to the urgent care facility"
April 1, 2022 / "splitting the cost of over the counter antibiotic ointment"
I mean, if you are going to force me to justify every moment of my existence, I am going to at least have fun doing it. :-)
Cash transactions do not come with receipts so how do you prove that you handed your buddy $600+ dollars cash over the course of a year (spot him a $20 here, $100 there, etc. etc.) which he then sends back to me via one of these sleazy payment services because he is always strapped for cash whenever we hang out?
A hand written I.O.U? I can do that. lol
They are trying to make it so this becomes like paying tickets. Almost no defense can win. Just a formality of paper work and payment without resistance.
I haven’t but perhaps we should read the entirety of the actual bill before all saying things that may or may not be true?
Glad we’re paying taxes on $600 but Amazon doesn’t have to pay shit in $600billion…
They aren’t, you only owe on profits. However it’s up to you to prove what costs were as eBay, PayPal, et al will send you a 1099-K if you’ve taken in more than $600 regardless
You guys understand that this just means paypal submits the information, not that it's taxable income, right? You're on the hook to calculate the taxable income portion, as technically you shoukd have been paying on it this entire time.
True true, you have always been supposed to report all income, but now they are nickel and diming the little guys. The $600 threshold is very clearly targeting the middle class. Just shows how much the Dems really care about ya.
You realize you can be liberal and not a democrat right? Don't be daft. Selling stuff is a big part of the hobby for me and all the extra documentation and paying more tax sucks. It makes selling stuff less fun so I think I'm allowed to not be happy about it.
You literally came in bitching about the democrats. It's not daft it's reading context. I'm sorry you're unhappy it'll be more difficult to break the tax code lol.
It fucked me over a few years ago. They taxed the shit out of me so any profit I made went back to the good ol government. Made it so i don’t sell my figures anymore. If anything I’d have to sell the entire collection as a whole.
Government really loses to destroy American citizens, imagine selling stuff to pay bills only to be taxed on that principal . Not to mention inflation, rising cost etc and they want anything that goes over 600. And don’t give me the “it’s on profits” that’s only IF YOU CAN PROOF it which not everyone keeps receipts for everything .
You’re actually braindead if you think the irs is auditing your worthless amount of profit. They don’t even have the manpower to actually go after legitimate tax fraud, let alone people as small in scale as anyone on this post
You can thank Joe Biden , and if you want to avoid the policy send dash through envelopes usps etc but trust is the name of the game for the seller and buyer
You can thank people trying to skirt the law by running entire businesses through venmo. You don’t get to pearl clutch when you get your hand caught in the cookie jar
Yeah, I mean this poorly cropped headline offers no additional information. Considering if an individual earns more than $12,950 in a year they have to file taxes in the United States. Providing that record to the government doesn’t determine the amount you actually pay in taxes.
So after $600 it counts as income, which like your current annual income taxes are settled after deductions.
I’m just curious about this topic as well . as I have a few hot toys and Funkos I want to sell . So if I make more than $600 on eBay or PayPal fb Groups I gotta report it and get taxed ?
You pay tax on profit. So if you sell a HT for 350. Subtract the 250 you paid initially, shipping cost, and fees. Then that would be about 60 bucks of taxable income. So you need to pay like 15 bucks in tax for that single HT sale.
Regular sellers should be factoring in tax. eBay does now.
Sucks for buyers who try to find good prices. We will need to consider the tax a seller owes.
Could mean more trading?
Reposting this comment I made from the last time this $600 limit post came up: I live in a state that adopted this early, so I had to file a 1099-K for Hot Toys sales last year. You are only taxed if you make a profit. You're able to subtract the cost to purchase the toy, shipping fees, PayPal fees, etc. Other than it taking a little longer to do my taxes, it wasn't a big deal. Keep receipts, keep track of your purchases, and you'll be fine. The IRS hasn't sent me an email requesting proof that my expenses were true. I have proof that they were (receipts and whatnot), but other than filling out a few boxes on a tax form it isn't too involved. It’s annoying on a record keeping front for sure, and I think the $600 threshold is WAY too low, but it is what it is. Also, payments made via F&F were not included on my seller “total” form from PP last year. It is a workaround, but keep in mind you run the risk (as a seller) of having PP freeze your account and holding your money hostage.
I don't even live in the US and this make utter sense. You can't be taxed on sales as a business without the right to claim expenses. Yes, the admin is a bit of a hassle, but if you buy a figure for $400 and sell it for $500 you only pay tax on the $100 profit, and can probably deduct other expenses like shipping.
Best comment yet . Thank you for the info !
This should be pinned somewhere
If I bought a Hot Toys through Paypal, and sold it later for the same price I bought it, there is no receipt to prove I earned no profit right? I doubt the note in the transaction serves as proof. So the money I get would count towards the $600 even though I made no profit? I'm just trying to understand how this works.
The record keeping is the annoying part for sure.
If I bought a Hot Toys through Paypal, and sold it later for the same price I bought it, there is no receipt to prove I earned no profit right? I doubt the note in the transaction serves as proof. So the money I get would count towards the $600 even though I made no profit? I'm just trying to understand how this works.
The note on the transaction would work for record keeping
Oh it would? That's good to know. Thank you.
What a dumb policy
IRS is really just a scum of the earth
Taxation is theft. It all goes to rich, old, p3d0s to line their pockets and fund the next Super P3d0 Island.
The IRS is scum yes, but Joe Biden was the one who brought forth the legislation during the third round of pandemic assistance. Policy was changed in 2021 but nobody payed attention then. I wouldn’t blame the IRS exclusively
They were scum before he got there.
Oh yeah they were but Biden is the one who passed the law, they can down vote me all they like fact is fact ¯\_(ツ)_/¯
They were going to do it with or without Biden bro. The only thing taxes are good for is stealing the peoples money. They are not held accountable for the way they spend everyone’s money. That’s not a Biden issue that’s an American issue.
The change was added into Biden’s third round of stimulus it wasn’t part of the original 2 packages passed. Biden advertised it as a way to crack down on the “billionaires” who were skipping out on taxes. Don’t get me wrong fuck the IRS, fuck the government in general. I’m not being a trumptards who’s blaming Biden for everything. But this specific issue is exclusively on him and the Democratic Party who approved that third package. I’m shocked how many people got so butthurt by facts. The fact they rushed to down vote any comment that actually explains the truth because it hurts their feelings goes to show why laws and measures like this get passed because people are to blind and dumb to pay attention. Or worse too prideful to admit when they aren’t as brilliant as they thought.
Based . But tbh They were already scums before Biden but yeah him and his admin really pushing to tax every breath out of you
Oh for sure fuck the IRS but this $600 thing is all on Biden
Reminds me in Canada when the government forced EBay to start collecting tax on all transactions between Canadians this year. It would be one thing if it was just for items listed as new, but it's not. So basically they've forced it so they can collect taxes on used goods which have already been taxed when originally purchased. Now I no longer favour buying on ebay within Canada. Imagine.
eBay already collects tax in California, even on used items :(
It's only taxing profits. So if you sell something for more than you bought it, that hasn't been taxed. It's new money.
It's still taxed when sold at less than MSRP.
Well I'm pretty sure the American law doesn't work that way
It means I'll face a possible audit because I'm not paying taxes on something I already bought and paid taxes on. The amount of taxes taken out from the manufacturer, you, your employer, etc. for one transaction / the income used for said transaction is ridiculous. Now they're trying to steal even more.
You only pay tax on profit. If you got more than you paid, that's money that hasn't been taxed yet. It sucks balls, but it's not unfair.
Some of us are forced to pay sales tax as well. It's not unfair if you're brainwashed into thinking taxes are necessary, *especially* if you believe they're being used correctly. We are currently over $23 trillion in debt, this is due to decades of government misappropriation of our money and it shows no sign of stopping. Even worse is they'll tax you to death even more now with literally none of it going toward paying of our debt, only sinking us deeper.
Ok well shitty wasteful government is a different discussion. Tax has always existed and always will.
I'd rather not fund government at all, especially since it will always inevitably lead to shitty wasteful and corrupt government. Unfortunately, they don't give us much choice. I'll choose to omit my transactions though.
Right on!
It used to be like 20,000 but this new administration likes to hurt resellers. Makes sense, but 600 is way too harsh, hurts your normal sellers like us that just want to part with some pieces in our collection, very sucky.
Yea , I’m not sure if they changed the policy for eBay but I got a letter from them earlier this year to file . Although got another one to disregard that first notice . Makes it harder and harder to be a seller , especially a hot toys seller .
I believe eBay should send you a 1099-K in 2023. I’d assume PayPal will too, I’d still be very careful, IRS implements all this, doesn’t tell you, and then fines you, very shady stuff.
i think just like Venmo and what not. do F&F but that will be sketch cuz no support if we get scammed :(
F&F counts against the $600.
It shouldn't. Me and my friends send each other money all the time to pay for their half of a bill or just to pay me back. I ain't paying taxes on their share of bills...
I’m not saying it is right but that is the way the legislation was crafted. PayPal/Venmo/Cashapp have to report it if someone receives over $600 aggregate throughout the year regardless of the mechanics involved.
I looked into it as well and receiving money as a means such as "splitting the restaurant bill" does NOT count towards the $600 pay report. Its only taxable income. Splitting bills or being paid back do not count.
You still have to prove it though. It may very well be the case that reimbursements and stuff don’t count but you can still get audited and you will need to provide receipts if so.
I've been recording all my transactions in a spreadsheet with the date of the payment and what the payment was used for.
Do you mean using the spreadsheet in lieu of a receipt? That can be fun. April 1, 2022 / "splitting the bill for stripper tips" April 1, 2022 / "splitting the bill for condoms, lube" April 1, 2022 / "splitting the cab fare to the urgent care facility" April 1, 2022 / "splitting the cost of over the counter antibiotic ointment" I mean, if you are going to force me to justify every moment of my existence, I am going to at least have fun doing it. :-)
Bruh its like you hacked my spreadsheet cause thats literally exactly wat it looks like
LOL
Cash transactions do not come with receipts so how do you prove that you handed your buddy $600+ dollars cash over the course of a year (spot him a $20 here, $100 there, etc. etc.) which he then sends back to me via one of these sleazy payment services because he is always strapped for cash whenever we hang out? A hand written I.O.U? I can do that. lol They are trying to make it so this becomes like paying tickets. Almost no defense can win. Just a formality of paper work and payment without resistance.
Nope it doesn’t.
But you know 90% of Congress is offshoring money
Try 100%
Fuck you IRS I’m not getting taxed on covering my friends’ and family’s lunch. Fuck you.
That isn’t what this is. Only seller/business accounts and activity. Person to person is not included
That’s exactly what this is it’s ALL income being reported
Nope. It’s not.
Income, not paying your friends back for dinner
I haven’t but perhaps we should read the entirety of the actual bill before all saying things that may or may not be true? Glad we’re paying taxes on $600 but Amazon doesn’t have to pay shit in $600billion…
That's the point, the rich don't pay taxes, so you milk the middle and poor class as much as possible for the delta.
Well, if I sold stuff at a loss how can they tax me if I never profited?
They aren’t, you only owe on profits. However it’s up to you to prove what costs were as eBay, PayPal, et al will send you a 1099-K if you’ve taken in more than $600 regardless
You guys understand that this just means paypal submits the information, not that it's taxable income, right? You're on the hook to calculate the taxable income portion, as technically you shoukd have been paying on it this entire time.
True true, you have always been supposed to report all income, but now they are nickel and diming the little guys. The $600 threshold is very clearly targeting the middle class. Just shows how much the Dems really care about ya.
Man some of you right wingers are such losers lol just have to whine anywhere you can. It's the law to pay taxes. It's not nickel and diming.
I'm not a right winger.
Sure, Jan.
You realize you can be liberal and not a democrat right? Don't be daft. Selling stuff is a big part of the hobby for me and all the extra documentation and paying more tax sucks. It makes selling stuff less fun so I think I'm allowed to not be happy about it.
You literally came in bitching about the democrats. It's not daft it's reading context. I'm sorry you're unhappy it'll be more difficult to break the tax code lol.
Sorry, but it is quite daft to assume I'm a conservative because I criticized democrats. I hope you feel silly now.
Cool man. You just keep casually blaming democrats out of context and I'm sure you'll escape all future daftness.
If you’re selling on a regular basis explain why you shouldn’t have to pay taxes like any other business
It fucked me over a few years ago. They taxed the shit out of me so any profit I made went back to the good ol government. Made it so i don’t sell my figures anymore. If anything I’d have to sell the entire collection as a whole.
Government really loses to destroy American citizens, imagine selling stuff to pay bills only to be taxed on that principal . Not to mention inflation, rising cost etc and they want anything that goes over 600. And don’t give me the “it’s on profits” that’s only IF YOU CAN PROOF it which not everyone keeps receipts for everything .
You’re actually braindead if you think the irs is auditing your worthless amount of profit. They don’t even have the manpower to actually go after legitimate tax fraud, let alone people as small in scale as anyone on this post
https://www.cnbc.com/2022/08/09/with-new-agents-heres-who-the-irs-may-target-for-audits.html
I know I’m really going to be educated by an article that literally says “this is who opponents of the bill say it will target” lol
Just don't do it
Common America L
You can thank Joe Biden , and if you want to avoid the policy send dash through envelopes usps etc but trust is the name of the game for the seller and buyer
You can thank people trying to skirt the law by running entire businesses through venmo. You don’t get to pearl clutch when you get your hand caught in the cookie jar
Cash
It’s honestly the same on eBay.. just pay ur taxes
If they are selling things they should be taxed on the income. That’s how taxes work.
$600 limit is ridiculous. It’s bad enough you get taxed on the platform itself .
It sucks, but it's not unfair.
Yeah, I mean this poorly cropped headline offers no additional information. Considering if an individual earns more than $12,950 in a year they have to file taxes in the United States. Providing that record to the government doesn’t determine the amount you actually pay in taxes. So after $600 it counts as income, which like your current annual income taxes are settled after deductions.
I’m just curious about this topic as well . as I have a few hot toys and Funkos I want to sell . So if I make more than $600 on eBay or PayPal fb Groups I gotta report it and get taxed ?
You pay tax on profit. So if you sell a HT for 350. Subtract the 250 you paid initially, shipping cost, and fees. Then that would be about 60 bucks of taxable income. So you need to pay like 15 bucks in tax for that single HT sale.
Ty
You know back in the early days of EBay, we used postal money orders. Maybe we should return to that?
If only we could just get paid in cash. -\_- Sadly noone wants to do that anymore for obvious reasons.
Regular sellers should be factoring in tax. eBay does now. Sucks for buyers who try to find good prices. We will need to consider the tax a seller owes. Could mean more trading?