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Message
Can somebody explain what is a 1099 tax form?
Posted on 5/28/23 at 1:06 pm
Posted on 5/28/23 at 1:06 pm
I am selling some stuff Ebay and I read that if I sell over $600, I will get a 1099 from the irs. How much do I have to put aside to pay taxes for example on $1K or $2K?
12
Posted on 5/28/23 at 1:12 pm to Byrdybyrd05
50% should cover it.
Also keep receipts of any expenses involved in your ebay business, shipping etc
Also keep receipts of any expenses involved in your ebay business, shipping etc
This post was edited on 5/28/23 at 1:14 pm
Posted on 5/28/23 at 1:15 pm to Byrdybyrd05
I think it's taxed as regular income. In some cases you have to pay FICA taxes too IIRC
Posted on 5/28/23 at 1:18 pm to fallguy_1978
Well that sucks. I’m selling some valuable stuff on eBay to pay off a few credit cards.
Posted on 5/28/23 at 1:21 pm to Byrdybyrd05
quote:
Well that sucks. I’m selling some valuable stuff on eBay to pay off a few credit cards.
It's dumb. Do you know how much you paid for it? Don't you only have to pay taxes on the profits? I'm definitely not a tax accountant
Posted on 5/28/23 at 1:28 pm to fallguy_1978
I have sold on eBay before that went over $600 but this is the first time I will be selling over the limit with the 1099 in place. Depending on what sells, I am projecting to sell between $1K-$2K. I’m just selling psa sport cards and I paid different prices for them.
Posted on 5/28/23 at 1:59 pm to Byrdybyrd05
quote:
this is the first time I will be selling over the limit with the 1099 in place.
No joking.
The $600 1099 taxable income requirement was in the $1.9 TRILLION American Rescue Plan Act of 2021 which the Dems (who controlled both houses of congress then) passed and Biden signed in Biden's first year in office as an excuse to stimulate the economy after COVID.
It’s going to become harder to avoid telling the IRS about income from selling stuff online. -CNBC 3/26/2021
It's also one of the contributors to the current spike in inflation.
Posted on 5/28/23 at 3:07 pm to Byrdybyrd05
quote:Technically you never paying taxes on profits from Ebay was illegal. Now they are just cracking down harder on it
I have sold on eBay before that went over $600 but this is the first time I will be selling over the limit with the 1099 in place. Depending on what sells, I am projecting to sell between $1K-$2K. I’m just selling psa sport cards and I paid different prices for them.
Posted on 5/28/23 at 3:26 pm to TigerTatorTots
I wonder how that works with something where you don't know what your cost was? Like if I bought an autographed Michael Jordan jersey in the early 90s I'm not going to remember what I paid for it. Am I supposed to assume my cost was zero if I can't prove otherwise?
This post was edited on 5/28/23 at 3:59 pm
Posted on 5/28/23 at 4:07 pm to Byrdybyrd05
quote:
Well that sucks. I’m selling some valuable stuff on eBay to pay off a few credit cards.
What's your cost in the stuff?
Taxed on gain
Posted on 5/28/23 at 4:40 pm to Byrdybyrd05
This was in place last year as well, but at the last minute the $600 limit for getting a 1099 was lifted back to the $20k it was before.
Posted on 5/28/23 at 4:47 pm to TigerTatorTots
Shouldn't it be illegal for the government to tax something you already paid taxes on when you bought it?
Posted on 5/28/23 at 4:54 pm to BeaumontBengal
Is it still $20K this year for eBay or is the $600 in place for this year?
Posted on 5/28/23 at 5:06 pm to LSUSUPERSTAR
quote:
Shouldn't it be illegal for the government to tax something you already paid taxes on when you bought it?
We'd have to eliminate capital gains taxes. I'd be ok with that but you know the "income inequality" folks would throw a fit because people like Warren Buffett would effectively pay nothing. Our tax system sucks.
Posted on 5/28/23 at 5:19 pm to deeprig9
quote:
Also keep receipts of any expenses involved in your ebay business, shipping etc
This only works if you have an LLC. I sell 3D printed ghostbuster props on Etsy, and it’s considered a “hobby” in the eyes of the IRS since I don’t have an LLC. Which means I can write any of the expenses off.
Posted on 5/28/23 at 7:54 pm to finchmeister08
What about stub hub? Just sold some tkts on there but they didn’t ask for SSN, address or anything. Not sure how they would report it otherwise.
Posted on 5/28/23 at 8:01 pm to Byrdybyrd05
I could be wrong, but I think the 1099 is just a form to memorialize a payment to you. A copy goes to the IRS. It doesn’t mean that the entire amount is taxable as ordinary income. As with most things, it depends.
Posted on 5/28/23 at 9:34 pm to fallguy_1978
quote:If you don't know your cost, then your cost was $0 according to the IRS and you are taxed on what you sold it for
I wonder how that works with something where you don't know what your cost was?
Posted on 5/28/23 at 9:35 pm to LSUSUPERSTAR
quote:I mean, it should...but it isn't
Shouldn't it be illegal for the government to tax something you already paid taxes on when you bought it?
Posted on 5/28/23 at 10:06 pm to finchmeister08
quote:
This only works if you have an LLC.
Not true. I offset 1099 income with expenses without an LLC.
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