Dakotagrafx 7,297 Posted March 21, 2021 part of the new covid relief will affect those that sell on ebay, etsy, amazon, use paypal etc. that is important to understand: SEC. 9674. MODIFICATION OF EXCEPTIONS FOR REPORTING OF THIRD PARTY NETWORK TRANSACTIONS. (a) IN GENERAL.—Section 6050W(e) of the Internal Revenue Code of 1986 is amended to read as follows: ‘‘(e) DE MINIMIS EXCEPTION FOR THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third party settlement organization shall not be required to report any information under subsection (a) with respect to third party network transactions of any participating payee if the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions does not exceed $600.’’. (b) CLARIFICATION THAT REPORTING IS NOT REQUIRED ON TRANSACTIONS WHICH ARE NOT FOR GOODS OR SERVICES.—Section 6050W(c)(3) of such Code is amended by inserting ‘‘described in subsection (d)(3)(A)(iii)’’ after ‘‘any transaction’’. (c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. (2) CLARIFICATION.—The amendment made by subsection (b) shall apply to transactions after the date of the enactment of this Act. info can be found on page 182 on the official documenthttps://www.congress.gov/117/bills/hr1319/BILLS-117hr1319enr.pdf 1 Share this post Link to post Share on other sites
haumana 1,220 Posted March 23, 2021 I think it might just be me ... so anything under $600 doesn't need to be reported. I thought that was the standing rule already? Share this post Link to post Share on other sites
Dakotagrafx 7,297 Posted March 23, 2021 Prior to this most states didn’t require reporting till after $20,000 but when I had the business with all the deductions it really didn’t affect me personally either way. But now just selling household items will put me over $600. just thought others might want to know Share this post Link to post Share on other sites
haumana 1,220 Posted March 23, 2021 Hmm... good to know. Thank goodness I have a cpa, and they don't ask too many questions 1 Share this post Link to post Share on other sites
haumana 1,220 Posted March 27, 2021 found this. seems to be able to explain it in a way that I understand it a little better https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html?utm_source=facebook&utm_medium=news_tab&utm_content=algorithm&fbclid=IwAR26m075Txta5gk3Rmjyo0bJKywwoaP1sDrU7QRNWZ1jt2DU1w9NYo58P_A 2 Share this post Link to post Share on other sites
Dakotagrafx 7,297 Posted March 27, 2021 I just bring it up - I closed the business and this last year claimed hobby income even though I didn't meet the threshold for a 1099-k - and got hammered. figured those that skirt the rules might get a surprise. I am missing the business from the deductions aspect but we was supposed to not be around as much this last year traveling etc . . . . 2 Share this post Link to post Share on other sites