@derryb said:
My philosophy on 1099's is this: I don't know who will send me one (and to the IRS) and I don't know when they will arrive. I will wait till close to tax filing deadline to allow them all to have ample time to make it to my mailbox. Filing early may create the need to later amend.
Do you not know who you sold coins to/through? This strikes me as very odd. I know Etsy, for example, won't be sending me any kind of 1099.
And if for some mistaken reason Etsy does unexpectedly send you a 1099 and you have already filed your taxes. . . oh well.
for one thing, one is often not sure if he met the threshold for the 1099Ks. On the other hand there are numerous kinds of 1099s, not just the Ks from payment processors. Like I said, one is not 100% sure who will be sending a 1099. If you need the refund bad enough go ahead and file. Me, I don't need the refund bad enough to take a chance of jumping the gun on filing my return. You do it your way, I'll do it mine. That's why I called it "my philosophy."
@rooksmith said:
I'm assuming the IRS doesnt have enough time to go around estimating taxes on junior's penny collection, even if its worth more than $600.
They need zero agents. They simply assume a cost basis of zero and collect taxes on the full sale value. The computer does this automatically for them by simply adding any missing 1099 information to your filing against a zero cost basis.
Well, I can tell you from experience, they need at least 10.000 more agents answering the phones.
@rooksmith said:
I'm assuming the IRS doesnt have enough time to go around estimating taxes on junior's penny collection, even if its worth more than $600.
They need zero agents. They simply assume a cost basis of zero and collect taxes on the full sale value. The computer does this automatically for them by simply adding any missing 1099 information to your filing against a zero cost basis.
Well, I can tell you from experience, they need at least 10.000 more agents answering the phones.
I agree. But they need zero agents to send you a bill based on a 1099 you ignored. It's automatic.
@KISHU1 said:
Is the threshold for this past years taxes $20,000 or $600 I’m a little confused
Thanks
Frank D
OK I think I got this one. $20,000 has been federal limit up until last year. 2022 federal going to $600 (they want to put an end to garage sales). $600 before 2022 has been implemented by certain states. I thought Illinois was $600 but I read Illinois is $1000 doesn’t matter anymore everyone is $600 starting next year (for 2022).
That garage sale crack was suppose to be funny ( you’re peeing your pants you’re laughing so hard admit it. OK not that funny). I’m saying the garage sale kind of on line sellers will stop like me before complicating taxes over a few (600) bucks.
@derryb said:
My philosophy on 1099's is this: I don't know who will send me one (and to the IRS) and I don't know when they will arrive. I will wait till close to tax filing deadline to allow them all to have ample time to make it to my mailbox. Filing early may create the need to later amend.
Do you not know who you sold coins to/through? This strikes me as very odd. I know Etsy, for example, won't be sending me any kind of 1099.
How do you get paid from Etsy? If people send you a check, you won't get a 1099. If you are paid through a credit card processing company and you live in a state with a reporting limit which is greater than what you received, you will get a 1099
@KISHU1 said:
Is the threshold for this past years taxes $20,000 or $600 I’m a little confused
Thanks
Frank D
The threshold for paying taxes on profits is anything over $0. Whether or not you get a 1099 has nothing to do with that.
Everybody knows that key word “profits” you didn’t answer the question.
It is $20,000 on the Federal. However, your state rules will supercede the Federal guidance. So, without knowing where you live, it is impossible to say.
@derryb said:
My philosophy on 1099's is this: I don't know who will send me one (and to the IRS) and I don't know when they will arrive. I will wait till close to tax filing deadline to allow them all to have ample time to make it to my mailbox. Filing early may create the need to later amend.
Do you not know who you sold coins to/through? This strikes me as very odd. I know Etsy, for example, won't be sending me any kind of 1099.
How do you get paid from Etsy? If people send you a check, you won't get a 1099. If you are paid through a credit card processing company and you live in a state with a reporting limit which is greater than what you received, you will get a 1099
"A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
We sincerely apologize for the error and any inconvenience this may have caused."
"A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
We sincerely apologize for the error and any inconvenience this may have caused."
I am in CA and had less than 200 transactions.
I got the same response from ebay. It appears, that there are thousands of sellers who got the 1099k in error.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
@HoneyMarket said:
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
Why not just go to your state's site? You only have to worry about the one state.
@HoneyMarket said:
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
Why not just go to your state's site? You only have to worry about the one state.
I went to it and could not determine what the minimums were, for eBay to send a 1099.
I figured I'd just ask if there was one site that listed all of them. I figured I'd ask as there are quite a few eBay'ers up here who might have a link. Google has been useless for me.
@HoneyMarket said:
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
Why not just go to your state's site? You only have to worry about the one state.
I went to it and could not determine what the minimums were, for eBay to send a 1099.
I figured I'd just ask if there was one site that listed all of them. I figured I'd ask as there are quite a few eBay'ers up here who might have a link. Google has been useless for me.
@HoneyMarket said:
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
Why not just go to your state's site? You only have to worry about the one state.
I went to it and could not determine what the minimums were, for eBay to send a 1099.
I figured I'd just ask if there was one site that listed all of them. I figured I'd ask as there are quite a few eBay'ers up here who might have a link. Google has been useless for me.
So my state limit is $600 and thus eBay sent me a 1099 for about $700 in sales (not coin related - just some stuff).
What's the most simple way someone can document their initial costs and then document what they sold the items for?
How about factoring in things like shipping, driving to pick up/deliver items, etc?? I need the big boy tax tricks to turn this little side gig into a money losing business (on paper)!
Looks like my online yard sale(s) has bit me in the azz!
@HoneyMarket said:
So my state limit is $600 and thus eBay sent me a 1099 for about $700 in sales (not coin related - just some stuff).
What's the most simple way someone can document their initial costs and then document what they sold the items for?
How about factoring in things like shipping, driving to pick up/deliver items, etc?? I need the big boy tax tricks to turn this little side gig into a money losing business (on paper)!
Looks like my online yard sale(s) has bit me in the azz!
OR pay the 20% on $700. I don’t know how much you value your time and patience but I don’t go through that much crap for 140 bucks. Lesson learned for next year.
@HoneyMarket said:
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
Why not just go to your state's site? You only have to worry about the one state.
I went to it and could not determine what the minimums were, for eBay to send a 1099.
I figured I'd just ask if there was one site that listed all of them. I figured I'd ask as there are quite a few eBay'ers up here who might have a link. Google has been useless for me.
So my state limit is $600 and thus eBay sent me a 1099 for about $700 in sales (not coin related - just some stuff).
What's the most simple way someone can document their initial costs and then document what they sold the items for?
How about factoring in things like shipping, driving to pick up/deliver items, etc?? I need the big boy tax tricks to turn this little side gig into a money losing business (on paper)!
Looks like my online yard sale(s) has bit me in the azz!
You don't really need documentation. For that small a number, they aren't going to audit you. As long as your "deductions" are reasonable, they won't question them.
@HoneyMarket said:
So my state limit is $600 and thus eBay sent me a 1099 for about $700 in sales (not coin related - just some stuff).
What's the most simple way someone can document their initial costs and then document what they sold the items for?
How about factoring in things like shipping, driving to pick up/deliver items, etc?? I need the big boy tax tricks to turn this little side gig into a money losing business (on paper)!
Looks like my online yard sale(s) has bit me in the azz!
OR pay the 20% on $700. I don’t know how much you value your time and patience but I don’t go through that much crap for 140 bucks. Lesson learned for next year.
I agree with your point about the value of time.
I figured, I'd find out what forms small biz folks use to write off things such as mileage for their vehicle, shipping costs, eBay costs, packing material, etc... I drive around to auction houses weekly, seeing what they have - Maybe I should factor in writing off those trips to offset the "profits" of my eBay sales.
My time is valuable...but I have some time to waste (learn) how to maybe use the tax code to my favor for once!
Who knows, maybe I can buy a new truck this year and learn how to somehow write a portion off of my income taxes!
@jmlanzaf said:
You don't really need documentation. For that small a number, they aren't going to audit you. As long as your "deductions" are reasonable, they won't question them.
That's part of the problem - "Reasonableness" is in the eye of the auditor!
@jmlanzaf said:
You don't really need documentation. For that small a number, they aren't going to audit you. As long as your "deductions" are reasonable, they won't question them.
That's part of the problem - "Reasonableness" is in the eye of the auditor!
It's pretty clear not all of the $700 would be profit. How much time do you suppose can be justified trying to collect $50-60 or so?
@jmlanzaf said:
You don't really need documentation. For that small a number, they aren't going to audit you. As long as your "deductions" are reasonable, they won't question them.
That's part of the problem - "Reasonableness" is in the eye of the auditor!
They are not auditing over $700
I do over $100k every year and they have never audited me. One time there was a discrepancy and a simple letter of explanation with no documentation resolved it.
@jmlanzaf said:
I do over $100k every year and they have never audited me. One time there was a discrepancy and a simple letter of explanation with no documentation resolved it.
If I can ask...do you do your own taxes?
If so, are you writing off things such as the use of your vehicle (to travel to shows, look at coins, auctions/estate sales, etc...), the cost of shipping & materials (including your time for handling), etc...?
For something as small as my little online yard sales, what might be easier? Schedule C or Schedule D?
There have been differing opinions on these two forms, within this thread.
Since I'm getting a 1099 for my states limit limit of $600, I guess I'm going to have to claim it on the Federal as well...so I need to quickly get an education on the best way to list my expenses, to offset my profits.
At this point, if I do nothing, the $700 eBay reported that I made looks like all profit.
I've been using the basic Deluxe version of the H&R Block software for the past 10+ years...
@jmlanzaf said:
I do over $100k every year and they have never audited me. One time there was a discrepancy and a simple letter of explanation with no documentation resolved it.
If I can ask...do you do your own taxes?
If so, are you writing off things such as the use of your vehicle (to travel to shows, look at coins, auctions/estate sales, etc...), the cost of shipping & materials (including your time for handling), etc...?
For something as small as my little online yard sales, what might be easier? Schedule C or Schedule D?
There have been differing opinions on these two forms, within this thread.
Since I'm getting a 1099 for my states limit limit of $600, I guess I'm going to have to claim it on the Federal as well...so I need to quickly get an education on the best way to list my expenses, to offset my profits.
At this point, if I do nothing, the $700 eBay reported that I made looks like all profit.
I've been using the basic Deluxe version of the H&R Block software for the past 10+ years...
I do my own with Turbo Tax. I use schedule C because I am running a business. I do not deduct much for travel or office expense to avoid fees flags. I do, of course, deduct all of of pocket expenses like shipping or shipping supplies.
I'm pretty sure you can NOT deduct your time. That's not an expense.
Comments
And if for some mistaken reason Etsy does unexpectedly send you a 1099 and you have already filed your taxes. . . oh well.
for one thing, one is often not sure if he met the threshold for the 1099Ks. On the other hand there are numerous kinds of 1099s, not just the Ks from payment processors. Like I said, one is not 100% sure who will be sending a 1099. If you need the refund bad enough go ahead and file. Me, I don't need the refund bad enough to take a chance of jumping the gun on filing my return. You do it your way, I'll do it mine. That's why I called it "my philosophy."
Well, I can tell you from experience, they need at least 10.000 more agents answering the phones.
I agree. But they need zero agents to send you a bill based on a 1099 you ignored. It's automatic.
Is the threshold for this past years taxes $20,000 or $600 I’m a little confused
Thanks
Frank D
OK I think I got this one. $20,000 has been federal limit up until last year. 2022 federal going to $600 (they want to put an end to garage sales). $600 before 2022 has been implemented by certain states. I thought Illinois was $600 but I read Illinois is $1000 doesn’t matter anymore everyone is $600 starting next year (for 2022).
That garage sale crack was suppose to be funny ( you’re peeing your pants you’re laughing so hard admit it. OK not that funny). I’m saying the garage sale kind of on line sellers will stop like me before complicating taxes over a few (600) bucks.
So, who gets a 1099 for 2021?
I am confused!
Does anybody know?
I know I have not received one.
Guess I wasn’t successful someone else should give it a shot.
The threshold for paying taxes on profits is anything over $0. Whether or not you get a 1099 has nothing to do with that.
Everybody knows that key word “profits” you didn’t answer the question.
How do you get paid from Etsy? If people send you a check, you won't get a 1099. If you are paid through a credit card processing company and you live in a state with a reporting limit which is greater than what you received, you will get a 1099
It is $20,000 on the Federal. However, your state rules will supercede the Federal guidance. So, without knowing where you live, it is impossible to say.
Well, you tried and he didn't understand. So, we're all failures.
should be "...lower than what you received..."
I just got this from Ebay:
"A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
We sincerely apologize for the error and any inconvenience this may have caused."
I am in CA and had less than 200 transactions.
mbogoman
https://pcgs.com/setregistry/collectors-showcase/classic-issues-colonials-through-1964/zambezi-collection-trade-dollars/7345Asesabi Lutho
I got the same response from ebay. It appears, that there are thousands of sellers who got the 1099k in error.
Does anyone know of a website that lists ALL of the states and what each of their minimums are, for reporting income from earnings such as eBay?
BST references available on request
Why not just go to your state's site? You only have to worry about the one state.
I went to it and could not determine what the minimums were, for eBay to send a 1099.
I figured I'd just ask if there was one site that listed all of them. I figured I'd ask as there are quite a few eBay'ers up here who might have a link. Google has been useless for me.
BST references available on request
https://www.patriotsoftware.com/accounting/training/help/what-are-your-1099-misc-state-filing-requirements/
Thanks - that got me the info I was looking for!
You have better Googling skills than I
BST references available on request
So my state limit is $600 and thus eBay sent me a 1099 for about $700 in sales (not coin related - just some stuff).
What's the most simple way someone can document their initial costs and then document what they sold the items for?
How about factoring in things like shipping, driving to pick up/deliver items, etc?? I need the big boy tax tricks to turn this little side gig into a money losing business (on paper)!
Looks like my online yard sale(s) has bit me in the azz!
BST references available on request
OR pay the 20% on $700. I don’t know how much you value your time and patience but I don’t go through that much crap for 140 bucks. Lesson learned for next year.
https://www.patriotsoftware.com/accounting/training/help/what-are-your-1099-misc-state-filing-requirements/> @HoneyMarket said:
You don't really need documentation. For that small a number, they aren't going to audit you. As long as your "deductions" are reasonable, they won't question them.
I agree with your point about the value of time.
I figured, I'd find out what forms small biz folks use to write off things such as mileage for their vehicle, shipping costs, eBay costs, packing material, etc... I drive around to auction houses weekly, seeing what they have - Maybe I should factor in writing off those trips to offset the "profits" of my eBay sales.
My time is valuable...but I have some time to waste (learn) how to maybe use the tax code to my favor for once!
Who knows, maybe I can buy a new truck this year and learn how to somehow write a portion off of my income taxes!
BST references available on request
That's part of the problem - "Reasonableness" is in the eye of the auditor!
BST references available on request
It's pretty clear not all of the $700 would be profit. How much time do you suppose can be justified trying to collect $50-60 or so?
They are not auditing over $700
I do over $100k every year and they have never audited me. One time there was a discrepancy and a simple letter of explanation with no documentation resolved it.
If I can ask...do you do your own taxes?
If so, are you writing off things such as the use of your vehicle (to travel to shows, look at coins, auctions/estate sales, etc...), the cost of shipping & materials (including your time for handling), etc...?
For something as small as my little online yard sales, what might be easier? Schedule C or Schedule D?
There have been differing opinions on these two forms, within this thread.
Since I'm getting a 1099 for my states limit limit of $600, I guess I'm going to have to claim it on the Federal as well...so I need to quickly get an education on the best way to list my expenses, to offset my profits.
At this point, if I do nothing, the $700 eBay reported that I made looks like all profit.
I've been using the basic Deluxe version of the H&R Block software for the past 10+ years...
BST references available on request
I do my own with Turbo Tax. I use schedule C because I am running a business. I do not deduct much for travel or office expense to avoid fees flags. I do, of course, deduct all of of pocket expenses like shipping or shipping supplies.
I'm pretty sure you can NOT deduct your time. That's not an expense.