1099-K Changes Coming in 2022

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AladainAF

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Just a heads up if you have been in the gig economy, or otherwise accepting paypal (or similar) payments for goods and services and the like, you need to be aware that the 1099-K changes for 2022 are likely going to affect you. Currently, your money received is not reported to the IRS unless BOTH of the following requirements are met:

* You receive more than $20,000 in transactions in a year
* You receive more than 200 total transactions in a year

Thanks to our wonderful fucks that voted in a geriatric dementia patient as president, and for voting in Democrats, they had passed a law that changed this, effective Jan 1 2022 to the following:

* You receive more than $600 in transactions in a year

That's it. 20K dropped to $600 and 200 transaction requirement removed. As such, a TON more income will be affected by this. The typical types of jobs this will affect you are things like...

1. Freelancers (Artists, programmers, gig people)
2. Any gig economy worker that does it part time for extra cash.
3. Patreon people
4. Small twitch streamers

So just a friendly heads up. I have a feeling this is going to hit people across the face and no one really know's its coming. You always were liable for your taxes on this income, but now they are going to make sure they get it.
 
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Kirun

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Just a heads up if you have been in the gig economy, or otherwise accepting paypal (or similar) payments for goods and services and the like, you need to be aware that the 1099-K changes for 2022 are likely going to affect you. Currently, your money received is not reported to the IRS unless BOTH of the following requirements are met:

* You receive more than $20,000 in transactions in a year
* You receive more than 200 total transactions in a year

Thanks to our wonderful fucks that voted in a geriatric dementia patient as president, and for voting in Democrats, they had passed a law that changed this, effective Jan 1 2022 to the following:

* You receive more than $600 in transactions in a year

That's it. 20K dropped to $600 and 200 transaction requirement removed. As such, a TON more income will be affected by this. The typical types of jobs this will affect you are things like...

1. Freelancers (Artists, programmers, gig people)
2. Any gig economy worker that does it part time for extra cash.
3. Patreon people
4. Small twitch streamers

So just a friendly heads up. I have a feeling this is going to hit people across the face and no one really know's its coming. You always were liable for your taxes on this income, but now they are going to make sure they get it.
RIP THOTS - YGWYFD.
 
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Sludig

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Aggravating for even just selling like used hobby gear or sounds like? I would have been in trouble when I was selling excess coral from my saltwater tank.
 

Sludig

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Bro you sold that for $1.
On paper, sure. But with these processors playing along, I don't see what your out is. Used to be you just hope you didn't get audited. Under a certain value probably still fine. But do 10k wheeling and dealing selling guns, vehicles, whatever, bet their system also flags you when you go to turn in your simple ez return.
 

Brodhi

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This will surely get the upper class to pay their fair share.
 
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LachiusTZ

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Automated under reporter going to be fucking up some people the next few years
 

Big Phoenix

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This will surely get the upper class to pay their fair share.
Right?

This is clearly targeted at the bottom 50% who have made a killing over the past 2 years scalping and doing side hustles.
 

Sludig

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Right?

This is clearly targeted at the bottom 50% who have made a killing over the past 2 years scalping and doing side hustles.
Actually this hitting scalpers almost makes it all very worth it. Until they just move on to requiring non reporting methods. Plenty of desperate nerds going to send a money order for a 3090
 

lurkingdirk

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This is rough for people like me, who work contracts. I'm going to pay so much in tax this year, it's going to suck. I've kept up with quarterly tax payments, but more is going to be owed at the end of the year.

fuckingthingsucks-bill-o-reilly.gif
 
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Mist

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Just a heads up if you have been in the gig economy, or otherwise accepting paypal (or similar) payments for goods and services and the like, you need to be aware that the 1099-K changes for 2022 are likely going to affect you. Currently, your money received is not reported to the IRS unless BOTH of the following requirements are met:

* You receive more than $20,000 in transactions in a year
* You receive more than 200 total transactions in a year

Thanks to our wonderful fucks that voted in a geriatric dementia patient as president, and for voting in Democrats, they had passed a law that changed this, effective Jan 1 2022 to the following:

* You receive more than $600 in transactions in a year

That's it. 20K dropped to $600 and 200 transaction requirement removed. As such, a TON more income will be affected by this. The typical types of jobs this will affect you are things like...

1. Freelancers (Artists, programmers, gig people)
2. Any gig economy worker that does it part time for extra cash.
3. Patreon people
4. Small twitch streamers

So just a friendly heads up. I have a feeling this is going to hit people across the face and no one really know's its coming. You always were liable for your taxes on this income, but now they are going to make sure they get it.
I'm pretty sure a lot of right-wing people on this forum were in favor of THOTAUDIT when it was a hashtag.

This is the logical conclusion of that as well.
 

Big Phoenix

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I'm pretty sure a lot of right-wing people on this forum were in favor of THOTAUDIT when it was a hashtag.
Except thot audit was already a thing. Onlyfans and the like 1099d you for years now.
 

AladainAF

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I'm pretty sure a lot of right-wing people on this forum were in favor of THOTAUDIT when it was a hashtag.

This is the logical conclusion of that as well.

Of course. But thots were already over the 20k/200 transaction limit, I'm quite sure of that, so it's a different animal.
 

Mist

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Except thot audit was already a thing. Onlyfans and the like 1099d you for years now.
Yeah but if you sell farts in a jar or bathwater or used panties or whatever via somemthing outside Onlyfans like paypal, you could get away with not paying taxes on it.
 

AladainAF

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Yeah but if you sell farts in a jar or bathwater or used panties or whatever via somemthing outside Onlyfans like paypal, you could get away with not paying taxes on it.

Again, not really true, unless you were under the 200 transaction limit. I'm pretty sure if youve got a following that's buying your queefs and pee, you're well over the 20k/200 mark.
 
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Sludig

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My gripe is not aside gigs, but essentially you garage sell selling hobby stuff you've already paid tax buying and selling at a loss not making it a profit vector.
 
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Mist

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My gripe is not aside gigs, but essentially you garage sell selling hobby stuff you've already paid tax buying and selling at a loss not making it a profit vector.
You used to just be able to say that your hobby expenses cancelled out your hobby income, but that changed after 2017, aka not "the libs fault."

This is when I stopped bothering to sell magic cards for extra money. This was part of the Trump tax "cuts" when they increased the standard deduction but removed all sorts of other deductions.


1640115696372.png
 

Sludig

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You used to just be able to say that your hobby expenses cancelled out your hobby income, but that changed after 2017, aka not "the libs fault."

This is when I stopped bothering to sell magic cards for extra money.


View attachment 389111
In your scenario, it's still as you say side money and making a profit. My example would be Bought a gun for 1k new, sell it for 700 later, upgraded a telescope, sold old one.

Vs, I can understand say i have my salt tank. I continuously grow and clip coal for sale is certainly side money profit even if it doesn't cover the costs of my aquarium.


Or just rabble rabble taxation is theft, become ungovernable.