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IRS Delays $600 Tax Reporting Rule for Venmo, Etsy Sellers and Other Digital Wallets

1,810 1,005 December 23, 2022 at 01:44 PM in Free Shipping (2)
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Joined Jan 2021
L2: Beginner
> bubble2 87 Posts
HankyPoop
12-25-2022 at 07:35 AM.
12-25-2022 at 07:35 AM.
Quote from windnsalsa View quoted comment :
Measly few hundreds is not much of fraud to deal with. Go after the BIG fish

I second this!

Also $600 without accounting for future inflation is effectively a meaningless arbitrary number that might as well be $0.
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Joined Mar 2015
L3: Novice
> bubble2 165 Posts
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goodmxguy
12-25-2022 at 09:46 AM.
12-25-2022 at 09:46 AM.
Quote from skyzophrenyk View quoted comment :
Most of these people are selling their own used items at a loss, or receiving payments from friends or family, or getting small amounts of cash for taking a study or doing surveys or winning a prize and don't want the ridiculous complexity of a 1099-K and trying to write off expenses for 5 year old items they don't even have their original receiot for.

If you consider those tax evaders, you might want to see if your tongue is black from all the government boots you've licked.

There is still a $20,000 threshold for people running serious businesses online.

Yea, a lot of gig workers would use Venmo as one of the options to make business and receive payments. So, yes, potentially people could cheat if it they don't report it. A lot of people do the right thing, but some would feel better than the rest and avoid tax payments.
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Joined Apr 2014
Confused
> bubble2 958 Posts
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CaptainCheap0
12-25-2022 at 10:17 AM.
12-25-2022 at 10:17 AM.
Man if only eBay was included in this. 😢
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Joined Mar 2008
L5: Journeyman
> bubble2 633 Posts
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skyzophrenyk
12-25-2022 at 10:23 AM.
12-25-2022 at 10:23 AM.
Quote from goodmxguy View quoted comment :
Yea, a lot of gig workers would use Venmo as one of the options to make business and receive payments. So, yes, potentially people could cheat if it they don't report it. A lot of people do the right thing, but some would feel better than the rest and avoid tax payments.

Still not millionaires and billionaires, nor does it explain a $600 report threshold as opposed to say $60,000 or even $20,000 which it's always been.
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Joined Jul 2006
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> bubble2 35,193 Posts
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SUCHaDEAL
12-25-2022 at 06:18 PM.
12-25-2022 at 06:18 PM.
https://www.cnbc.com/2022/12/23/i...ments.html

The IRS announced it won't require platforms such as Paypal and Venmo to issue a tax when a user's business transfers exceed $600.
The pre-2022 threshold of 200-plus transactions worth an aggregate above $20,000 remains in place for now.
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Joined Jan 2009
L6: Expert
> bubble2 1,453 Posts
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epistaxis
12-25-2022 at 06:46 PM.
12-25-2022 at 06:46 PM.
Quote from FearAndLoathing View quoted comment :
Yeah, eat the rich….it's not like they pay 95% of all the US federal taxes or anything.

How do those boots taste?
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Joined Dec 2013
L5: Journeyman
> bubble2 983 Posts
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jmb206
12-26-2022 at 09:26 AM.
12-26-2022 at 09:26 AM.
Quote from IssacClarke View quoted comment :
The gov is a joke
Participating in their game is the joke
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Joined Dec 2013
L5: Journeyman
> bubble2 983 Posts
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jmb206
12-26-2022 at 09:35 AM.
12-26-2022 at 09:35 AM.
Quote from tennis8363 View quoted comment :
You gave up rights to that a long time ago with the Patriot Act. Not saying I agree, but it is reality.
No, most of us don't give up rights, they are stolen from us.
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Joined Dec 2008
L10: Grand Master
> bubble2 12,799 Posts
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tennis8363
12-26-2022 at 09:46 AM.
12-26-2022 at 09:46 AM.
Quote from jmb206 View quoted comment :
No, most of us don't give up rights, they are stolen from us.
Choice to stay in the country or leave is always there. As impractical as it may be.
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Joined Jan 2008
L8: Grand Teacher
> bubble2 3,433 Posts
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sphere2040
12-26-2022 at 12:15 PM.
12-26-2022 at 12:15 PM.
One of the biggest losers for this law is the environment. Previously, ordinary people would sell stuff on craigslist/ebay and atleast keep many items still in use/circulation. As soon as this law was announced, many people did not want to deal with the hassle so they either donated the stuff to thrift stores (Goodwill etc.) or simply threw them away. (there has been a massive increase is house hold trash after the announcement, simultaneously a drastic increase in the price of trash services - Waste management nearly doubled their pricing). The stuff that was donated to Goodwill and other thrift stores, is usually marked up way above actual retail price (whats up with this recent trend? its worthless shopping for a deal at any thrift store these days). Most of the stuff is never bought and doesnt enter recirculation, but goes to the land fills. Whether via direct disposal or via thrift store disposal - these items end up in the landfill (the prices of landfills - to use them - have gone up drastically too). Either way - thanks to this law - the environment got f*cked.

Keep in mind that they just delayed it by a year. Dems want to increase the reporting amount threshold from $600 to $5000 (so generous of the so called 'peoples party'). The repubs want to increase it back to the original amount of $20,000.

Nickle and Diming the masses is turning into a national pass time for these Washington clowns.

Edit - Fixed broken english, spelling and grammer. Either SD is acting up or I am too drunk.
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Last edited by sphere2040 December 28, 2022 at 02:57 AM.
Joined Apr 2014
Confused
> bubble2 958 Posts
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CaptainCheap0
12-26-2022 at 05:40 PM.
12-26-2022 at 05:40 PM.
Quote from PhatChanceAThat View quoted comment :
Its a huge deal to honest online retailers like myself. Many Little fish can lower their prices since they cheat the system making it more difficult to make a sale for similar items. I'm all for this reporting since I already pay my fair share of taxes. If you are selling 200 items or close to $20K not many are selling garage sale items for a loss, they are doing it to make money. I know several people who sell online for profit but do so on multiple accounts to avoid paying taxes. I hate cheaters. Wait until this does go into effect and all those who thought they were in the clear because the new rule didn't go into effect and they get audited for past years.

Last year I sold over 25,000 gross with a loss of 10,000$ lol. Review tech I pay for myself as a hobby and I lose my butt. But yet I will be taxed on gross on eBay 😂
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Joined Sep 2010
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> bubble2 19 Posts
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86racer
12-26-2022 at 06:37 PM.
12-26-2022 at 06:37 PM.
Quote from tennis8363 View quoted comment :
Another year of tax evasion/fraud for many, lol.

Exactly
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Joined Aug 2022
L3: Novice
> bubble2 264 Posts
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cornerblitz13
12-27-2022 at 01:34 AM.
12-27-2022 at 01:34 AM.
Quote from Jdmalibu View quoted comment :
Huge news for the Gig economy…definitely not where the government needs to be squeezing.
It's crazy we live in a country where our own government is after us small little people. Hope this bar will not even go lower next year
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Joined Dec 2019
L3: Novice
> bubble2 181 Posts
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Rand0mly
12-27-2022 at 02:59 AM.
12-27-2022 at 02:59 AM.
Quote from jazzpianist View quoted comment :
If you sell something at a loss you do not have to report it, it's only if you sell for a profit. I am not a fan of the new rules either

That only applied to people who's trying to sell items to make profit. Obviously he's not trying to buy a coffee table and sell it for profit. So the rule doesn't apply here.
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Joined Apr 2013
Not today Satan
> bubble2 150 Posts
28 Reputation
Actionjem
12-27-2022 at 04:37 AM.
12-27-2022 at 04:37 AM.
Quote from tennis8363 View quoted comment :
Another year of tax evasion/fraud for many, lol.
The original $20k is in the realm of a small business, that should be taxed. But $600 can be made just selling used kids clothes that you paid way more for. All it's going to do is hurt SAHMs trying to clean out closets and crafters trying to cover the cost of their hobby.
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