Donna Genie explains that eBay and Etsy sellers will receive Form 1099-K starting in 2022 if they exceed $600 in sales. The threshold drop from previous years creates confusion about which sales count, and many sellers aren't prepared for the tax reporting requirement.
More than $600 in sales.
Starting in 2022 (not effective for 2021).
Do you sell things on ebay and maybe Etsy or similar sites? If you are, you need to know about an important change that's coming in 2022. So not effective for 2021. But starting in 2022, if you sell more than $600 on these sites, you will be receiving a 1099K. This form is going to the IRS to confirm that you are declaring the income on your tax return. I foresee a lot of problem areas with this form, but the focus of the IRS has been more on forcing the compliance efforts on the vendor rather than the person who is supposed to be reporting the Lets talk about what the problem might be. If you're selling through a merchant provider, you're going to get a 1099k for those, but those are typically going to be sales receipts if you're selling through ebay. What if you're selling the personal stuff around your house? You're just selling some old books that you've accumulated over the years? What if you're selling stuff that isn't a business, it's a personal product? Well, those questions are a little unknown at this point as to how we're going to answer that. But know that if you are selling things for a business purpose, you might need to get it legit for 2022. If you want to look at how those taxes we can help. We've helped many businesses set up and formalize so that they can take advantage of the good tax strategies rather than just leave this to chance. They will find out now that this new regulation and the 1099K will be your tattletale. So make sure you're legit for 2022. If you need help lining up a business strategy for something that may have been kind of a hobby in the past, we're here to help. Please contact us. And of course please subscribe to our YouTube page below. And we hope to see you Sam.
