Now that your 2021 taxes are done—or at least under way—it’s time to focus on a key tax change for 2022 affecting millions of Americans making money through platforms like eBay, Etsy, Airbnb, Venmo and Uber.

This change, which is beginning to ripple through e-commerce, tightens the tax reporting on income earned by people selling goods and services through online platforms. Starting this year, the platforms must send a Form 1099-K to the Internal Revenue Service reporting an individual’s total revenue if platform earnings top $600.

Now, many more sellers, resellers and gig workers than in the past will have their platform earnings reported to the IRS. The upshot: They may have to pay taxes they haven’t been paying, or else keep complex records showing why they don’t need to.

Under prior law, platforms only had to send 1099-K forms if a vendor earned more than $20,000 and had over 200 transactions. The new bar is so low that opponents are trying to get it changed before the platforms send out a blizzard of confusing tax forms next January.

Acer wrote:
Put on your big boy pants and keep proper documentation.

With documentation, things sold at a loss aren't taxed.
With documentation, profit on things held more than a year aren't taxed up to a threshold.

IT HAS ALWAYS BEEN THUS. We were supposed to report it all along, but we didn't. Just like sales tax on internet sales.

C(-)ris wrote:

Who keeps receipts for everything they ever bought?

chopper wrote:
Thanks Biden!