Tropical Fruit > Tropical Fruit Buy, Sell & Trade
2022 PayPal taxes
Jaboticaba45:
I know we all use PayPal and I read today that they will charge taxes on all earning over $600
Even a kid like me can earn money like that…
Well that sucks…
If anyone want to elaborate on this more or explain it more feel free to.
https://www.paypal.com/us/cshelp/article/how-does-paypal-report-my-sales-to-the-irs-what-are-the-form-1099-k-reporting-requirements-help543
I guess it can be bypassed by friends/family
Giant Gecko:
With today’s inflation the threshold should be 3 times that. What’s going to happen is hobby sellers trying to recoup some expenses are going to stop selling and many businesses start as hobbies so they will decline too long term. Someone could form a LLC to write off all of the expenses which for many is more than their profits but after 2 years, if I can recall, they have to show a profit to keep it.
spaugh:
You won't owe anything if all you made was 1000$ or something close to that. You are still supposed to file a return though.
You don't need an LLC to write off expenses either. You can write off any fertilizers or plants etc and do it all as a sole proprieter. Just keep your receipts.
You paypal earnings are personal income from your sole proprietorship and you can deduct all the plants and fertilizers etc you bought.
Welcome to being a grown up, and dealing with the government.
spaugh:
That said, you could probably do nothing and they won't ever bother you for such a small amount.
Giant Gecko:
https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/amp/L89qz1GNj
Hobby expenses can’t be itemized after 2018, only standard deduction that everyone receives. I had last year’s taxes done by H&R Block and my tax preparer said I couldn’t deduct my hobby expenses. I just think it should be more than $600, nobody is making a living off of that. Also most of the items sold by average folks were paid with $ already taxed to begin with.
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