3 ms·

What tax changes?

Melatonic 5y ago
Previously companies like eBay, Venmo, Paypal, etc were not required to officially report transfers to the IRS. A few years ago they changed that rule where if you appear to be making more than $20,000 dollars in a year period then they send forms to the IRS directly. If it is only for personal use (like say you are sending money via Venmo to a roomate) there is no tax to pay. But for actual sales you would be. This year they lowered that $20,000 to $600. So anyone who receives more than $600 in one calendar year will trigger Venmo/Paypal or whoever to send the IRS the proper tax forms. If it is for personal use of course you are still not required to pay any tax. As far as I know none of the loopholes for taxing the uber rich have been changed so this is really just going along with the IRS' current policy of increasing revenue from small time outfits vs going after the bigger fish (who can often afford to hire expensive accountants and lawyers to fight the IRS) I am not against paying taxes but having to wrangle the info from a bunch of different sources and then also deal with manually adjusting for other factors just makes this whole thing a huge pain.
- MisterSandman 5y ago
  I agree with your point of it being a hassle, but I never understood the huge outcry about this. If I work part-time at Burger King and make $10,000/year, I would pay taxes on that. Why should the IRS not be taxing side-hustles that make 10k/year? The argument of them not taxing the rich is sad, but also irrelevant; they didn't add a new tax on side-hustles, just re-inforced an existing one. You technically should've been paying this anyway.
  - Melatonic 5y ago
    $10,000 would still be reasonable - the point is $600 really is not.
    - MisterSandman 5y ago
      Again - why? I pay taxes on my Savings Account where I earn less than a hundred dollars a year. It basically comes out to nothing. They're just reinforcing an existing tax that you should be paying anyway. If going though your orders to figure out your tax is too much of a hassle, then maybe your side hustle wasn't worth it in the first place.

What tax changes?

Previously companies like eBay, Venmo, Paypal, etc were not required to officially report transfers to the IRS. A few years ago they changed that rule where if you appear to be making more than $20,000 dollars in a year period then they send forms to the IRS directly. If it is only for personal use (like say you are sending money via Venmo to a roomate) there is no tax to pay. But for actual sales you would be. This year they lowered that $20,000 to $600. So anyone who receives more than $600 in one calendar year will trigger Venmo/Paypal or whoever to send the IRS the proper tax forms. If it is for personal use of course you are still not required to pay any tax. As far as I know none of the loopholes for taxing the uber rich have been changed so this is really just going along with the IRS' current policy of increasing revenue from small time outfits vs going after the bigger fish (who can often afford to hire expensive accountants and lawyers to fight the IRS) I am not against paying taxes but having to wrangle the info from a bunch of different sources and then also deal with manually adjusting for other factors just makes this whole thing a huge pain.

MisterSandman 5y ago
I agree with your point of it being a hassle, but I never understood the huge outcry about this. If I work part-time at Burger King and make $10,000/year, I would pay taxes on that. Why should the IRS not be taxing side-hustles that make 10k/year? The argument of them not taxing the rich is sad, but also irrelevant; they didn't add a new tax on side-hustles, just re-inforced an existing one. You technically should've been paying this anyway.
- Melatonic 5y ago
  $10,000 would still be reasonable - the point is $600 really is not.
  - MisterSandman 5y ago
    Again - why? I pay taxes on my Savings Account where I earn less than a hundred dollars a year. It basically comes out to nothing. They're just reinforcing an existing tax that you should be paying anyway. If going though your orders to figure out your tax is too much of a hassle, then maybe your side hustle wasn't worth it in the first place.