1: Free Tax USA
https://www.freetaxusa.
2: Cash App Taxes (Formally Credit Karma Tax)
https://cash.app/taxes
3: OnlineTaxes
https://olt.com/main/home/default.asp
4: IRS Free File: Do your Taxes for Free (for AGI $73,000 or less)
https://www.irs.gov/filing/free-f...s-for-free
IRS VITA and TCE Programs
The IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals.
The VITA program has operated for over 50 years. VITA sites offer free tax help to people who need assistance in preparing their own tax returns, including:
- People who generally make $60,000 or less
- Persons with disabilities; and
- Limited English-speaking taxpayers
More info: https://www.irs.gov/individuals/f...-taxpayers
Locator: https://irs.treasury.go
(The below policy was put on hold 12/23/22 If you are going to continue sell on Ebay etc you should still get the business software to help with the estimate on your 2023 self-employment/ estimated tax payments)
The IRS reminds Americans earning over $600 on PayPal, Venmo, or Cash App transactions to report their earnings
The new rule comes as a result of the American Rescue Plan Act of 2021.
If you have never bought business software in the past, you may need to do so this year. Also, wait to be sure you have gotten your 1099-K which can come as late as March, 2023
Don't buy the wrong software for your tax situation.
(This is a deal site - keep your political comments to yourself.)
Includes one $10 credit toward these in-product add ons: State E-file fees, additional state or Audit Defense. Limit one per license code. Add-on purchase must be made via payment card to receive $10 credit at the time of in-product purchase. Note from intuit website terms and conditions: In-product add-on prices subject to change and expected to increase in March 2023.
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I would really encourage you to buy the business software so you can run multiple scenarios to lower your taxes. For example
If you don't have receipts or documentation of the original purchase cost, then you can use the alternate method to determine the cost basis for those items. You can use the fair market value at the time they were acquired. This can be your best guess of the actual cost, or you can search online and try to find what the selling price would have been. I would try to estimate a reasonable discount, because most people buy things when they're on sale. If you are audited, you will only have to show that you used a reasonable fair market value as the cost basis, so keep records of the research you do to determine the fair market value.
For items that were inherited, the fair market value is always used as the cost basis, because the current owner did not purchase the items.
This is covered in IRS Publication 551: Basis of Assets
https://www.irs.gov/forms-pubs/ab...cation-551
https://www.irs.gov/pub/irs-pdf/p551.pdf
If you are not operating as a business, then you can report the income and expenses as Capital Sales. If your expenses (including the cost basis, eBay fees, shipping and handling costs) are more than the income, then there won't be any tax liability for these items. Depending on the type of items and how long you owned them, you might be able to use up to $3,000 of Capital Losses to offset other income.
Topic No. 409 Capital Gains and Losses: https://www.irs.gov/taxtopics/tc409
If you are buying anything for resale, then you need to be operating as a business and filing Schedule C. Doing this will get you the best possible tax treatment for your income and expenses, so it may be worth your while to do this even if you are not buying anything for resale.
You really don't want to file as a hobby seller, because the tax treatment in this case is brutal. You have to report all the income, but you can't deduct any expenses.
1- The 1099 reporting applies to the platform who you received the money from, not necessarily the platform who you advertised something thru.
2- Very high chance you have to have provided your social or EIN to the sender of the money for a 1099 to be issued.
Wait for the Amazon deal.
I miss the days where you could buy the software, use it, and then sell it on Ebay
2) Not that I ever did it, but why can't you resell it anymore? The codes are good for up to 5 installs.
1- The 1099 reporting applies to the platform who you received the money from, not necessarily the platform who you advertised something thru.
2- Very high chance you have to have provided your social or EIN to the sender of the money for a 1099 to be issued.
I guess we'll know for sure on Friday if the omnibus gets done.
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2) Not that I ever did it, but why can't you resell it anymore? The codes are good for up to 5 installs.
Others reading this thread, don't worry, just get what you always have. We are only talking about the changes to transactions being reported over $600 (I believe the previous limit on ebay was 200 transactions/ $20,000)
I guess we'll know for sure on Friday if the omnibus gets done.
I guess we'll know for sure on Friday if the omnibus gets done.
I'm going to be well over the $600 to PP for the year, but I have switched to cashing out urlhasbeenblocked directly to my bank account instead of using PP as an intermediary. I'll be fine with $10k.
If you don't have receipts or documentation of the original purchase cost, then you can use the alternate method to determine the cost basis for those items. You can use the fair market value at the time they were acquired. This can be your best guess of the actual cost, or you can search online and try to find what the selling price would have been. I would try to estimate a reasonable discount, because most people buy things when they're on sale. If you are audited, you will only have to show that you used a reasonable fair market value as the cost basis, so keep records of the research you do to determine the fair market value.
For items that were inherited, the fair market value is always used as the cost basis, because the current owner did not purchase the items.
This is covered in IRS Publication 551: Basis of Assets
https://www.irs.gov/forms-pubs/ab...cation-551
https://www.irs.gov/pub/irs-pdf/p551.pdf
If you are not operating as a business, then you can report the income and expenses as Capital Sales. If your expenses (including the cost basis, eBay fees, shipping and handling costs) are more than the income, then there won't be any tax liability for these items. Depending on the type of items and how long you owned them, you might be able to use up to $3,000 of Capital Losses to offset other income.
Topic No. 409 Capital Gains and Losses: https://www.irs.gov/taxtopics/tc409
If you are buying anything for resale, then you need to be operating as a business and filing Schedule C. Doing this will get you the best possible tax treatment for your income and expenses, so it may be worth your while to do this even if you are not buying anything for resale.
You really don't want to file as a hobby seller, because the tax treatment in this case is brutal. You have to report all the income, but you can't deduct any expenses.
I just don't want people buying the wrong software and paying twice.
(Thank you and repped for the Tax tip, I am going to need it)
(Really hate to be the guy that sold $601)
(At $601 you need to file a self employment tax and income tax return even if zero, correct? Otherwise the IRS would assume $601 in unreported self-employment income)
1- The 1099 reporting applies to the platform who you received the money from, not necessarily the platform who you advertised something thru.
2- Very high chance you have to have provided your social or EIN to the sender of the money for a 1099 to be issued.
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Tl;dr if I "made" over $600 on ebay and need this 1099 WHAT VERSION of TT do I need and why? Will it walk me through simply? I've always used FreeTaxUSA will it not work now?
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