1099k Paypal/Venmo Tax requirements for 2022

[HarryHunter]

How do you think people will handle this going forward for ‘22 while selling/buying things using p2p transactions services such as Paypal,Venmo,Cashapp,Zelle and many more?

I am reading this right am I? It used to just be small businesses who had to file, sounds like it’s everyone now?

P2P Income Tax Reporting Requirements

Understand the current rules and what’s changing in the new year in relation to income transferred through peer-to-peer payment systems with this guide.

www.uschamber.com

 

[AZmark]

I’ve never bought and then sold something for a profit yet so maybe it will be a deduction for me.

 

[HarryHunter]

I’ve never bought and then sold something for a profit yet so maybe it will be a deduction for me.

That’s what I’m hoping!

 

[BRTreedogs]

Idk to much about it but read thru the link you provided.
Basically my take away is they are going to provide you with a 1099 if your over $600 per year.
Its up to you, but if its for profit you will be required to report it.
If its not for profit don't.
But if they see repeated transactions for a similar amount they will audit you to see if your not reporting and you will have to prove its not a for profit business and your not evading taxes.

 

[Glory]

What’s it mean for the ammo buyers/sellers?

 

[BRTreedogs]

What’s it mean for the ammo buyers/sellers?

There already using the app against guidelines.
Act interesting get there payment info and report them.

 

[tdhanses]

Personally I’ll stop using the service for selling and just require checks with a 10 day holding period to make sure they clear.

 

[Softtail103]

There already using the app against guidelines.
Act interesting get there payment info and report them.

So I can safely assume that you have NEVER used PayPal or any other money app to purchase something from a seller on any of the gun or shooting sites? Report them. Maybe try to police yourself to make the world a better place.

 

[Softtail103]

What’s it mean for the ammo buyers/sellers?

No sir. Any money that goes through here will show as income. A 1099 shows the IRS that they have paid x$ to a sublet/private contractor. If you have no receipt for the items you bought years ago you can’t write the item off. You can try but with a audit you will need the invoices for the items sold to show a loss or no gain. Money Grab.

 

[svivian]

Personally I’ll stop using the service for selling and just require checks with a 10 day holding period to make sure they clear.

Unfortunately that still does not protect you as they are requiring banks to report the same information. You can still be audited and must account for any types of credits coming into your account

 

[tdhanses]

Unfortunately that still does not protect you as they are requiring banks to report the same information. You can still be audited and must account for any types of credits coming into your account

Well guess it might nit be worth selling gear anymore, especially if they either double tax you or create an audit from it.

 

[Softtail103]

USPS money order is the way to go. Change the rules and people will change with them. Stepping back into a cash and carry society.

 

[svivian]

There’s a pretty large petition from several large banks opposing it… Zions bank being one of them

 

[CoStick]

There’s a pretty large petition from several large banks opposing it… Zions bank being one of them

Opposition to what, link to the law or regulation they need to report transactions in banks of less than 10k?

 

[Softtail103]

Breaking Down the Plan to Report Your Bank Account to the IRS

The House budget reconciliation plan includes a controversial proposal to increase third-party reporting. The proposal isn’t popular with banks—or taxpayers. And an increasing amount of social media memes and posts have confused the issue. Here’s what you need to know.

news.bloombergtax.com

 

[Grumman]

Does anyone know if this applies equally to PayPal goods and services and friends and family? Seems like the friends and families should be excluded and not shown as income if truly used for that.


Sent from my iPhone using Tapatalk

 

[Trr15]

There already using the app against guidelines.
Act interesting get there payment info and report them.

Why would someone do this?

 

[svivian]

It was dropped from the bill some time ago.

It was not dropped it was amended. If you receive a total of $10,000 or more in deposits in a single year the government can look through all of your banking history. Previously only single deposits of $10,000 or more in cash were reported on an s8300 form. So depending on how much gear your turn and burn on here you can still be affected

 

[svivian]

Can I see a link to the passed bill?

It’s being proposed still which is why the banks are petitioning it. I suggest you do some research for yourself since your fingers seem to be working….

 

[thinhorn_AK]

Can I see a link to the passed bill?

Stop asking and start doing your own research. You are being incredibly annoying.