U.S. Stimulus Bill & Payment Processors / Tax Forms

shishy · Apr 7, 2021

Just a heads up for US based members if you are using payment processors like PayPal for transactions, the new stimulus bill has a change that is targeted for gig workers / collecting more taxes from online transactions.

Previously payment processors like PayPal were required to send you a 1099-K if you had:

- Annual gross payments that exceeded $20,000
- More than 200 transactions

With the new bill, starting in the 2022, they will send you a 1099-K if you:

- Earn more than $600 per year, irrespective of how many transactions

I suspect even one watch sale would mean you get a nice bill at the end of the year, so might be a good time to start having decent records of what you paid for watches just in case... hopefully no one has a "fun" surprise.

Or maybe line your jackets with cash 😎

Source:
https://www.fool.com/the-ascent/per...-contains-a-big-tax-surprise-for-gig-workers/

JwRosenthal · Apr 7, 2021

There was a discussion on this not long ago- but this is a good reminder since we are approaching that time of year. For those of us who buy on eBay, they dump the purchase record off their system after 60 days, so it may be good protocol to go the old fashion way and print the page (or at least do a pdf folder of the receipts) so we have a record of what we paid in case we decide to sell down the line.

gatorcpa · Apr 7, 2021

Heaven forbid that people should actually comply with the income tax laws.

Like Ronald Reagan used to say, “Trust but Verify”.
gatorcpa

JwRosenthal · Apr 7, 2021

gatorcpa
Heaven forbid that people should actually comply with the income tax laws.

Like Ronald Reagan used to say, “Trust but Verify”.
gatorcpa

I think there is a lot of confusion over the last couple of years as internet merchants (like eBay) started collecting sales tax and PayPal reporting income. People seem to think these are “new” taxes- thus the outrage- but they aren’t as we know, it was a self-reporting system...that not many reported.

shishy · Apr 7, 2021

gatorcpa
Heaven forbid that people should actually comply with the income tax laws.

Like Ronald Reagan used to say, “Trust but Verify”.
gatorcpa

Interesting fact, although he said that a lot I think it came from a russian proverb first! I attributed it to him for a long time until I checked.

But yeah I didn’t mean to suggest paying taxes is bad... just a heads up in case someone had to deal with back taxes or an audit if they didn’t realize is all!

Tony C. · Apr 7, 2021

gatorcpa
Heaven forbid that people should actually comply with the income tax laws.

I think it's worth noting that there is an important distinction to be made between non-compliance for the sake of pure greed, and as a form of protest against what might reasonably be viewed as wild unfairness. Corporations and wealthy individuals have numerous ways to reduce or even eliminate taxes on massive incomes, while most major governments are moving as rapidly as possible to eliminate cash, track all payments by individuals electronically, and take every last penny that is due.

I'm not advocating tax avoidance, but a significant percentage of people who do engage in such behavior do so in reaction to what I would suggest is a very reasonable sense of unfairness.

Archer · Apr 7, 2021

Tony C.
I think it's worth noting that there is an important distinction to be made between non-compliance for the sake of pure greed, and as a form of protest against what might reasonably be viewed as wild unfairness. Corporations and wealthy individuals have numerous ways to reduce or even eliminate taxes on massive incomes, while most major governments are moving as rapidly as possible to eliminate cash, track all payments by individuals electronically, and take every last penny that is due.

I'm not advocating tax avoidance, but a significant percentage of people who do engage in such behavior do so in reaction to what I would suggest is a very reasonable sense of unfairness.

Did you see Yellen's comments on corporate tax rates at the World Bank and IMF? It may be that the plan to set a minimum corporate tax rate is alive again...

Tony C. · Apr 7, 2021

Archer
Did you see Yellen's comments on corporate tax rates at the World Bank and IMF? It may be that the plan to set a minimum corporate tax rate is alive again...

Yup, and in a perverse sense I'm irritated, as I was just recently thinking of starting a pitchfork business. 😁

peterkirk01 · Apr 7, 2021

Here in Ireland we have a 12.5% corporate tax rate. No wonder we get so much foreign investment coming our way.

glownyc · Apr 7, 2021

Tony C.
I think it's worth noting that there is an important distinction to be made between non-compliance for the sake of pure greed, and as a form of protest against what might reasonably be viewed as wild unfairness. Corporations and wealthy individuals have numerous ways to reduce or even eliminate taxes on massive incomes, while most major governments are moving as rapidly as possible to eliminate cash, track all payments by individuals electronically, and take every last penny that is due.

I'm not advocating tax avoidance, but a significant percentage of people who do engage in such behavior do so in reaction to what I would suggest is a very reasonable sense of unfairness.

I've come across people who make this argument. When I asked them what legal actions they have take against the "wild unfairness" they have no answer or claim to be powerless. When I ask if they avoid supporting those corporations who are the worst offenders, the answer is no. When I ask if they have called or emailed elected officials about this issue, the answer is no. I can only conclude that they really don't care as much as they claim. Sure they disagree with it but it also makes a convenient excuse.

Evitzee · Apr 7, 2021

Corporations don't pay taxes.....their employees pay it in lower wages and fewer jobs, higher prices for the companies customers, and lower returns to the shareholders. As was famously said, "There is no free lunch". Governments are desperate for tax remittances so they can continue their income redistribution schemes.

glownyc · Apr 7, 2021

Evitzee
Corporations don't pay taxes.....their employees pay it in lower wages and fewer jobs, higher prices for the companies customers, and lower returns to the shareholders. As was famously said, "There is no free lunch". Governments are desperate for tax remittances so they can continue their income redistribution schemes.

Yet somehow every major tax cut has not lead to any major change in those things. The last go around the majority of corporations used the money for stock buyback. The major benefit going to a select few.

Tony C. · Apr 7, 2021

glownyc
I've come across people who make this argument. When I asked them what legal actions they have take against the "wild unfairness" they have no answer or claim to be powerless. When I ask if they avoid supporting those corporations who are the worst offenders, the answer is no. When I ask if they have called or emailed elected officials about this issue, the answer is no. I can only conclude that they really don't care as much as they claim. Sure they disagree with it but it also makes a convenient excuse.

Of course some people use the point that I raised as an excuse to rationalize tax avoidance, but the result of your infinitesimally small survey doesn't answer any of the really pertinent, associated questions.

glownyc · Apr 8, 2021

Tony C.
Of course some people use the point that I raised as an excuse to rationalize tax avoidance, but the result of your infinitesimally small survey doesn't answer any of the really pertinent, associated questions.

Your assuming infinitesimally. Regardless of the size I've also engaged with people who are actively taking action around the issue. None of those people feel the need to engage in criminal activity. That answers a lot of the questions in my book.

Walrus · Apr 8, 2021

Holy cow my wife hit the mother load selling all my old concert tees. Plus tools, computer parts and goodness knows what else. Just last night I packed some kind of faux rock fountain. So yeah we will be getting something. We always pay, but it’s kind of an American tradition to bitch a bit at tax time. Doesn’t make us bad, makes you (or me) feel a little better as a mail out the check. Then you forgot about it and repeat next year. If our national debt was a little, you know 10-20 trillion smaller, I’d feel a little better. That last stimulus where we got 1,200 or 1,400 dollars checks cost each American a little over 5k. Actually I forgot which one that was. It’s just odd when I government lectures us about saving more and being responsible when we see how they balance the books, that’s not directed at a particular party it’s general statement that applies to all parties, I think it’s ok to say general things like that, if not delete this post I don’t want drama, I pay my taxes, never been audited, only received unemployment once in life when I was injured at work.

STANDY · Apr 8, 2021

peterkirk01
Here in Ireland we have a 12.5% corporate tax rate. No wonder we get so much foreign investment coming our way.

Wasn't it 1% for google.... 😗

glownyc · Apr 8, 2021

Walrus
Holy cow my wife hit the mother load selling all my old concert tees. Plus tools, computer parts and goodness knows what else. Just last night I packed some kind of faux rock fountain. So yeah we will be getting something. We always pay, but it’s kind of an American tradition to bitch a bit at tax time. Doesn’t make us bad, makes you (or me) feel a little better as a mail out the check. Then you forgot about it and repeat next year. If our national debt was a little, you know 10-20 trillion smaller, I’d feel a little better. That last stimulus where we got 1,200 or 1,400 dollars checks cost each American a little over 5k. Actually I forgot which one that was. It’s just odd when I government lectures us about saving more and being responsible when we see how they balance the books, that’s not directed at a particular party it’s general statement that applies to all parties, I think it’s ok to say general things like that, if not delete this post I don’t want drama, I pay my taxes, never been audited, only received unemployment once in life when I was injured at work.

Last Week Tonight just did a story on the national debt you might find interesting.

Putting aside the political angles in the story I think the argument for the benefit of certain kinds of debt is well made. Your stimulus example is a good one. With that yes there is a cost but there is also a cost in not acting. Things like delayed economic recovery and future cost in services if people aren't able to stay in their homes. Balance that with the last round of tax cut which also has a cost. A cost projected in the trillions of dollars and mainly served to enrich people who were already well off.

Separately there is no stigma in collecting unemployment or at least there shouldn't be. You only get it if you've already paid into the system. If your car gets damaged there is no stigma when you get a check from the insurance company. That's the whole point of paying for insurance.

Walrus · Apr 8, 2021

glownyc
Last Week Tonight just did a story on the national debt you might find interesting.

Putting aside the political angles in the story I think the argument for the benefit of certain kinds of debt is well made. Your stimulus example is a good one. With that yes there is a cost but there is also a cost in not acting. Things like delayed economic recovery and future cost in services if people aren't able to stay in their homes. Balance that with the last round of tax cut which also has a cost. A cost projected in the trillions of dollars and mainly served to enrich people who were already well off.

Separately there is no stigma in collecting unemployment or at least there shouldn't be. You only get it if you've already paid into the system. If your car gets damaged there is no stigma when you get a check from the insurance company. That's the whole point of paying for insurance.

Ya I didn’t mean to imply there is anything wrong with receiving unemployment just saying I try not to rely on the government for anything. I don’t have an issue with all deficit spending, it has its place. Especially if we get a good infrastructure bill, I just have issues with all the pork added to these things. I’m pretty sure I won’t be solving anything though, yeah I’m one of those people who sends emails and calls my representatives to complain about certain things all I get is on mailing lists thanking me for my support and asking me for money, I guess they don’t really listen to what myou say, they must figure if your name pops up and you don’t say anything threatening you are supporting them. Again that’s both sides of the aisle

glownyc · Apr 9, 2021

Walrus
Ya I didn’t mean to imply there is anything wrong with receiving unemployment just saying I try not to rely on the government for anything. I don’t have an issue with all deficit spending, it has its place. Especially if we get a good infrastructure bill, I just have issues with all the pork added to these things. I’m pretty sure I won’t be solving anything though, yeah I’m one of those people who sends emails and calls my representatives to complain about certain things all I get is on mailing lists thanking me for my support and asking me for money, I guess they don’t really listen to what myou say, they must figure if your name pops up and you don’t say anything threatening you are supporting them. Again that’s both sides of the aisle

I see what your saying. My perspective is just different, to me we all rely on the government. When I flick the switch and the lights come on that's relying. The recent blackouts shows how fragile some of these things could be and that's why I think it's important to be informed and engaged. I also email and call. I've actually had some follow ups or been directed to help. Those are the ones I support and tell people about.

Archer · Apr 9, 2021

glownyc
I see what your saying. My perspective is just different, to me we all rely on the government. When I flick the switch and the lights come on that's relying. The recent blackouts shows how fragile some of these things could be and that's why I think it's important to be informed and engaged. I also email and call. I've actually had some follow ups or been directed to help. Those are the ones I support and tell people about.

Yes, unless you only drive on private roads, take planes only from private airports, and a whole host of others things, you rely on government for a heck of a lot, whether you like it or not.