I’m not a tax expert, so this is just informational. Not sure everyone knew this, but a recent law in the US made anything more than $600 reportable to the IRS for side-gig and sales payments through PayPal, Venmo, eBay, reverb etc. so if you sold a horn or got paid for a gig through those services, you may have had a new tax form coming your way in the US next year.
https://www.cnet.com/personal-finance/t ... -or-venmo/
Some possible good news- the WSJ is reporting that the IRS is delaying the implementation by 1 year to give congress time to potentially change the $600 threshold.
Having sold a horn or two this year, I’m excited by this development. Hope it sticks.
Possible delay in implementation of 1099-K tax forms
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Re: Possible delay in implementation of 1099-K tax forms
I thought this just made the enforcement more potent. That $600 threshold has existed for quite some time right? I’ve had bands where some members had to fill out paperwork for it since they did more than $600 worth of work but others who just subbed were under the radar
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Re: Possible delay in implementation of 1099-K tax forms
For digital payments it was a $20,000 threshold before PayPal or eBay had to send you an form until this year. My understanding is that physical payments, like getting a check after a concert were handled differently.
And don’t get me wrong, I’m not suggesting we shouldn’t pay taxes on things we are required to. I just really wasn’t looking forward to multiple new tax forms to collect and submit.
And don’t get me wrong, I’m not suggesting we shouldn’t pay taxes on things we are required to. I just really wasn’t looking forward to multiple new tax forms to collect and submit.