United States News and Drama The IRS goes after Etsy shops earning more than $600 a year

[The Gays From LA]

Null's favourite American institution, the IRS, is going after Etsy shops!

'Unwarranted and unfair': The IRS is watching how much you make selling any items online this year — how even casual sellers could get dinged by the new tax rules

"An American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers, and are all eligible to be taxed by the IRS"

The American Rescue Plan of 2021 lowered the 1099-K reporting threshold from $20,000 over 200 transactions to just $600 from any number of transactions, effective January 1.

Nearly 40% of Americans sold items online early in the pandemic, netting about $1,800 on average, according to a MoneyMagnify survey. For those who continue to sell goods on sites like Poshmark, Facebook Marketplace or Etsy to make some extra cash, here’s what you need to know about the new tax rules.

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The American Rescue Plan of 2021 requires third-party settlement organizations and credit card companies — including payment apps — to report payments for goods and services if they exceed $600 per year.

What that means is if you sell handmade jewelry, art or home décor on Etsy and your transactions total $600 or more in 2023, Etsy will send you a 1099-K form that you should use to report your income to the IRS.

The same rule applies if you sell any personal items online like a car, refrigerator, furniture, stereo or even clothes — and your transactions for the year add up to $600 or more.

And keep in mind that if you sell personal items for more than what you originally paid, that's what's known as a capital gain — and you'll face taxes on it. You should report this income on IRS form 8949, schedule D and via your 1099-K if you meet the IRS's threshold.

'Unwarranted and unfair': The IRS is watching how much you make selling any items online this year — how even casual sellers could get dinged by the new tax rules

Lawmakers and online platforms are fighting back.

finance.yahoo.com

Serious question: you've seen the footage of looters going into brand stores in various big US cities, emptying them of luxury items and then selling them online. Is this new law perhaps meant to crack down on those resellers who obtained their warez through crime?

 

[Burger Boy]

Etsy-shmetsy - this is gonna to destroy the MASSIVE Facebook Marketplace reseller "community" fr fr

 

[UltimateDestroyer]

It doesn't surprise me that .gov is out to ruin yet another small business opportunity. What Walmart didn't destroy, the government will.

And they're pushing this garbage during a period of historic inflation, which fucks the poor harder than they already have been!?

With politicians like these, who needs terrorists?

 

[delphi]

Etsy-shmetsy - this is gonna to destroy the MASSIVE Facebook Marketplace reseller "community" fr fr

Marketplace sales are pretty much all cash. There's no central way to collect information about how much people have received from sales like there is with etsy, e-bay, ravelry, etc.

 

[UltimateDestroyer]

Marketplace sales are pretty much all cash. There's no central way to collect information about how much people have received from sales like there is with etsy, e-bay, ravelry, etc.

It's not about the money, it's about screwing people whenever possible and getting away with it. Funny how the corporate oligarchy never seems to be affected by this crap, unless you own your own business, your workplace legally counts as a person.