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1099K threshold restored to $20K
derryb
Posts: 37,632 ✭✭✭✭✭
From ebay:
"We are happy to report that, thanks to your efforts, Congress has restored the original 1099-K reporting threshold of $20,000 and 200 transactions. This change will prevent millions of Americans who are selling used, personal items from receiving unnecessary and confusing tax forms."
No Way Out: Stimulus and Money Printing Are the Only Path Left
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This means nothing if you live in a State that has a lower threshold.
EBay will still generate a 1099-K and the IRS will be notified as well.
In Maryland the threshold is $600
This is a good thing, and if you live in a state with no income taxes you are just subject to the federal limits.
We also got a nice property tax reduction this year in my state. Thanks Texas.
Payment processors are free to issue the 1099K at any payment threshold and will issue it to meet states' thresholds. The new law establishes a higher threshold for a requirement to report (1099K) income subject to federal income taxes.
Move to Florida.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Well how's those home owners insurance costs down there in FL? My son's home is < half my value in NJ and he pays 3X the insurance cost.
Which is what I said...and no thank you to Florida. Too many old people already live there!🤣😂
You'd be surprised. I was just down there for a quick trip and I saw very few old people. I think the demographics have been changing.
1099K or not, you are still required to report income subject to federal income taxes
There you go! Didn't take long for that comment. 🤣😂
Looks like @jmlanzaf is too busy bumping the dead horse and dying Army ASE thread to the top and missed being the first member to preach about how we should all be voluntarily declaring our Ebay income on our Federal and State taxes.🙄
I have even LESS interest in living with the changing demographics!😎
Don't think of it as voluntary, think of it as the law of the land. Because it is.
So are speed limits. If you are one of those drivers that NEVER exceed the speed limit on our nation's highways PLEASE stay in the far right lane so us lawbreakers can save money on our brakes!😇
If you're speeding to the extent that you're committing a felony with penalties in line with tax evasion, you better believe I will do everything in my power to be as far away from you as possible on the road.
Yeah, but speeding seldom gets you sent to prison. 😮
Dead Cat Waltz Exonumia
"Coin collecting for outcasts..."
Just to clarify, the "income" (payments) on the 1099K form are not necessarily taxable. Only the profit or gain from those transactions is taxable.
That's what makes the 1099K so different and bothersome to many people.
100%.
If you are selling junk from your basement, the last thing you want is a 1099. NJ has a ridiculously low threshold, and I deal with it every year.
Dead Cat Waltz Exonumia
"Coin collecting for outcasts..."
No. I just didn't feel the need. Your dead horse appears to be the $600 Maryland limit. Glad to see you posted that yet again. Perhaps people who live in glad forums shouldn't throw Yap money.
VB
depends on the age of the house and code built to. I'm in a 2 year old $800k house, homeowners is under $1100 year.
No Way Out: Stimulus and Money Printing Are the Only Path Left
My mother in law lives down there and doesn't leave the house much when its hot
plus all the snowbirds are up north.
then pay your state taxes (none here) and quit whining.
No Way Out: Stimulus and Money Printing Are the Only Path Left
It also depends on location. If you live near the coast of the Atlantic Ocean or the Gulf of America, insurance will be higher.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
plus i'm only 12 miles inland from the Atlantic.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Homeowner's is negligible compared to NJ property tax difference. My homeowners is $5500 a year for 3250 SQ ft two story and a pool, surely a bit higher than NJ.....but my property taxes are around 9k and in NJ they'd be 20+, and thats before you factor in the 6.4% in NJ vs 0.0 in FL.
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Makes sense that a two year old home 12 miles from from the coast would have a low rate. A lot of single family homes in SE Florida are less than a third of that from the coast and were built when Franklin halves were still being minted though.
I do. I am not whining at all. Just stating facts. Plus this subject has been discussed many times on this forum.
When does the new rule kick in? If I sell less than $20k/200 sales in 2025, will I still get a 1099K or not? And is there a list of states that have lower limits, or is it just all of them with state income tax?
http://macrocoins.com
As I said earlier....this has already been discussed numerous times on this forum. Link for your convenience:
https://forums.collectors.com/discussion/1115042/1099k-for-states-not-following-the-irs-reporting-threshold#latest
It's all a big trade-off, no where is a great bargain for nice areas anymore. FL R/E taxes are not that different any more with the appreciation of homes in FL. My son bought his home in Palm Beach Gardens, near 95. The women who sold was there for almost 40 years. She paid around $50K when built. My son $325K & it needed a lot of work. The tax bill went from ~ $1,400 to almost $6K for my son in the first year and his escrow was severely short after that first year, causing a $500 increase in his mortage. My taxes in NJ are high, $12K, but that's comparable with my son's since my value is double. And we have great public school system
https://www.autismforums.com/media/albums/acrylic-colors-by-rocco.291/
https://support.waveapps.com/hc/en-us/articles/12277365763220-Form-1099-K-Federal-state-thresholds
All I know is that people hate to pay taxes but thoroughly enjoy the services those taxes provide. The constant chipping away at stuff like this can’t be a good thing.
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety," --- Benjamin Franklin
They aren't exactly chipping away. They tried to lower the 1099 threshold in order to try and limit the number of tax cheats. It was so unpopular, they reverted to what it was before. In that sense, it's more of a reversion than chipping away.
But I share your basic sentiment.
Of course you should, it is the law……...
It's not the cost of insurance, it's the cost to self insure.