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We've always had to issue 1099s for any contractor we pay more than $600 to. If you earn income, you're required to pay taxes on it. Seems to me the outrage is
by bdcravens 5y ago
We've always had to issue 1099s for any contractor we pay more than $600 to. If you earn income, you're required to pay taxes on it. Seems to me the outrage is over closing a loophole.
- bthrn 5y agoMy understanding is that the outrage is over spending time and money codifying new laws to collect taxes for small transactions instead of spending time and money codifying new laws to collect taxes from large tax-avoidant businesses and wealthy individuals who both are in a position to pay much more and who compared to average people pay basically nothing.
- toast0 5y agoReceiving a payment may or may not be earning income. A lot of people use these payment services to sell used personal goods for less than they paid (often, significantly less), which is not income. But now, they'll need to keep documentation of cost basis of their household goods, in case they sell them later. Even if you're selling used goods for profit, only part of the sale is income.
- bdcravens 5y agoYes, it does create a business burden. However, many sales of personal goods have some sort of tax burden (not the same, but for example, when you buy a car from an individual you are expected to pay tax on the purchase) I run a small resales business, and I do track COGS on sales. I often sell my personal items as well, and when I do, I just put the COGS as the sales price.