Posted on 12/10/2022 6:41:42 AM PST by RandFan
@SenThomTillis
The IRS should not have the authority to monitor the bank accounts of hardworking Americans. This new $600 Venmo rule is just another way for the Democrats to force Americans to foot the bill for their reckless tax and spending spree.
(Excerpt) Read more at twitter.com ...
I have been ringing this bell for months. Most FReepers were like, whaat??
Yep, it’s real.
Many of us use the services. Let’s say in the last year you’ve sold a few things on eBay, had a relative send you $1,000 for a piece of furniture and you sold a car on Craigslist. You used Venmo or PayPal because it was easy and safe. To the IRS, this will appear as INCOME.
There is no place or form for you to rationalize, either you put the entire amount down as INCOME or you can explain it in your audit. All this talk about profit/loss only applies if you are filing as a business - and that opens up a whole other area - are you paying self employment taxes on your “business income”?
“The rule does not include payments made between friends and family. “
This seems to be a common perception. Can you cite where on the IRS forms I am to subtract for payments made between family and friends? Because there is none.
You will get a 1099-K for the amount, PayPal may cut you some slack if it was labeled as a ‘gift’. But otherwise, this looks like INCOME.
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