Posted on 11/26/2022 2:32:48 PM PST by TigerClaws
My WORK will?? Oh maaan, unreal. OK thanks for the info.
Government math:
The measure is expected to bring in $8.40 billion over 10 years ($840 million/yr. on average). They’ll hire 87,000 new agents to audit and enforce this new rule, and others. At $100,000 per year per new-hire (a very low estimate of salary & benefits), that’s $8.7 billion per YEAR in incremental expenses to collect $840 million.
And this makes sense because?
If your employer is already paying you salary or hourly wages, they are (should?) be automatically withholding federal & state income taxes, and social-security & medicare/medicaid insurance premiums, paying you the net amount. If they gave you a $1,000 bonus, they should likewise be automatically doing tax withholding on that money as well. both your regular earnings AND your bonus should then be included in the annual W-2 form you receive from your employer.
If this isn’t what’s happening, then you may have bigger problems.
IRS will view all the reported receipts as income. It’s up to you to prove that it’s not income. You can claim that the $$ were from sales of used, personal items sold at less that what you paid and avoid tax on the receipts...but if called for an audit, do you have receipts for things that you bought years ago? Probably not...most usually toss them after any warranty period is past, if they keep them that long.
However, usually a one-time-bonus is simply included in your W-2. So there is nothing for you to report...the IRS already has the info.
Well this is a seasonal job that pays me by the hour. I deliver farm goods for them all up and down the upper East coast from about March till November then I work for a gas company delivering heating oil for 3 months. And every November they give me a bonus, but I can’t recall if they ever put it in my W-2. Actually I’m pretty sure they didn’t. If they didn’t then I assume I will be getting contacted by one of Bidens new 87,000 IRS agents so they will have more money to waste on foreign countries.
On ebay, 1099’s were only issued AFTER 20k.
Technically, yes you were supposed to report anything over $600.
No one really did using the $20k amount.
But years ago, CA made it $600 to force people from the gig economy. The 2021 asshole congress made it nationwide.
Keep your records folks...
“Government math:
...
And this makes sense because?”
Math is racist. Why do you think Government Math exists? Sheesh! /s
So who is going to issue the 1099 K form? 1099’s are done by accountants not the government. If cash transactions take place between 2 people how is anyone else going to know about it? I mean come on now!
Forgot to mention, you can still take the standard deduction even on the full 1040. So for you, assuming the 1099Ks are actual taxable income, you’re best bet is to file the full 1040 same as you do the EZ, only now you add in the Sched C for business and you can take business deductions within that. Everything else on the 1040 will stay the same. Just the line numbers’ll change.
Fully agree. No disagreement here.
“Different 1099. That 1099 is if you at someone for work more than $600. The 1099-K means you’ve received $600 or more in payments.”
Sincerely, I hope you can answer this. eBay will send me a 1099-K for about $1,000 I got from reselling hobby stuff.
There is no distinction, as far as I know, between this ‘income’ and the ‘income’ I have to claim on an IRA withdrawal. Setting aside the personal deduction and all that, doesn’t this place this income in the same basket, and subject to regular income tax? The IRS is getting a form with your SS or tax ID on it, no problem matching it up. If you DON’T claim it, it’s obvious. It’s up to you to do the work of filing schedule C or whatever is required to show profit/loss.
My point is that this isn’t something you can blow off, it’s right under their nose if they want to go after it. Or, you can just put it down as income.
“How much is the tax if you send a PayPal with $600 in it?”
I’m a little late reading your post, but I wonder the same thing. Through PayPal, you can send gifts or payments for goods and services. Anything not a gift, will show up as income. How we are to let the IRS know this was for that old couch and not for an off-the-books computer repair business, I don’t know.
Yes that would theoretically be true. Supposedly they compare the amounts from 1099s to a schedule C, which you would theoretically need to fill out. I’ve forgotten 1099s and never received notification. You could also deduct items like a home office that would more than offset the $1000. In the old days it wouldn’t be worth the IRS time to pursue, but who knows these days?
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