Can You Get Your Side Hussle on in 2022?

Maybe correct, never noticed... but I would better than assume that something like these would be retroactive effective Jan 1

If you are on SS and not over 62.5 this will for sure effect you. If you are "Retired" and on SS ( As I understand it ) it wont directly effect you IF....

So a story with this. My mother in Law, now 72 for the last 9 years or so her passed husband, and then the last few years just her have paid a pretty crazy amount of tax. Because they/she was pulling from an IRA and have some land rights with Gas and Oil payments I was never so concerned and just assumed the IRA income was undertaxed. I had offered to do their taxes for years, but of course they wanted the account to do that. Finally last year the Mother in Law allowed me to at least look at them.

It was REALLY hard to figure it out at first, but then I threw her numbers into one of those free online tax deals and very quickly figured out because she was not paying withholding on $24K in SS and the added income of the IRA and the Gas and Oil, she was paying $10K in taxes. By including the 7% payment on the SS she went from owing $10K to a $300 refund Needless to say for the remainder of this year we adjusted her withholding to 10% and have already submitted the form for this year to bring it down to 7%.

So all of that to maybe suggest I know what I am talking about when I say "On SS you can make as much as you want" what changes are the Medicare A and B payments ( the more you make the larger the payments are ) and in turn because those are higher, you obviously would get a smaller check. - BUT AGAIN, Im just a redneck with Goals and Dreams, and NOT a financial advisor.

In a "perfect world" this should technically not effect anyone... People only see the "paying taxes" part and dont understand the other financial benefits of just reporting it all. I actually ADDED income last year to maximize some deductions. It was like adding $2000 to get an additional $28,000 in deductions

Absolutely, none of that has changed... and exactly the reason anyone and everyone that has a legit side hussle should have at the very least a DBA business license, and a business bank account. There are many things that effect your "Personal Life" that cross over to your "Business Life" and are in at least part business deductions... Like your Cel phone, or your water, electric or gas bill, your vehicle, your rent or mortgage - the whole notion for the little guy to think they need to be hiding money... its COSTING you money

Anywhere you are being paid electronically and over the amount of $600, even little Kathy at 13 age that babysits will get the 1099.

A little secret... Decentralized Crypto currency - no longer Decentralized. You EARN more than $600 be it through trades or selling coin OR and this is a BIG OR get paid in Crypto and run it throw an exchange to do so, you guessed it 1099.

The ONLY way it can "change" and it is all the buzz right now is cash only payments.. there are a TON of people that think Cryto is safe, but like i said above, it the payment runs through and exchange ( and most do ) it will get 1099'd if the value over the course of the year is in excess of $600

The issue with CASH payments is you now have this wad of cash, and you have to make a car payment or rent or house payment or a credit card bill and you deposit more than $600 - guess what? thats reported to the IRS

If you wondered why the President wants 80,000 more IRS agents... well here you go

AND thats not even the best part LOL... Its WHY he is paying that. There where parts of his contract stock options that were due to expire, meaning if he did not exercise the options, the options would be lost. So what exactly does someone with no income do? he sells stock. He had to sell 15 million shares to #1 acquire the 22 million stock options per his contract, and #2 pay the taxes on the sale So after its all said and done he now has 7 million more Tesla stocks than he did before OR an additional 7.7 BILLION more than when it started - The guy cant lose LOL

Its STACKS in and STACKS out for me, dont even know how many in this year, 100's

I dont know the answer to this, I would assume out of the States and not so much to worry about... but an American outside the States pretty sure it will effect them.

Up and until this year, if you sold more than $20,000 ( there is an exact number I dont know what it is maybe 22K ) you would get a 1099, meaning we, My Wife.. me, my son - someone gets a few 1099's from eBay, and Amazon, and Etsy so nothing changes for us.

The HUGE fallout from all of this wont be till next Jan, Feb ( as in 2023 ) when people get the 1099's in the mailbox that crap will hit the fan. There will be a lot of "Wait WHAT?!?!?!?" going on. There are going to be a LOT of people that will be absolutely screwed and owe big money to the IRS and the new 80,000 Auditors. The 2nd to last thing on this green earth I would wish on anyone is to owe money to the IRS - let alone owing money to the IRS if you are on the list from the OP. I predict lives will be ruined across all financial levels

Start with getting a better job or one that will be more enjoyable. But the side thing has many options depends on skill and physical abilities . And willingness to work
From knowing nothing about you I will suggest taking a butler or driver job and working for rich people keep their cars and their shoes shiny.

Not trying to answer for him...but if you get the time you should read the thread he started on getting a side hustle.

It's like a whole course you can read, absolutely free.

https://www.warriorforum.com/warrior...days-ebay.html

Prices of many things are rising faster that the returns most people get from investments . Find some way to roll your biggest recurring expenses into some kind of business that legally allows you to write them off. And if you can invest from a business with your pretax dollars you are starting out with returns. From saving on taxes.

There will be no getting the rich as the rich write the tax code. So the people that get gotten are to the poorer side and don't know the rules.

Savage post many of the people I watch on YouTube George gammon a few months ago mentioned if you read and can understand the tax code it is the best way to start and set up a business.

I guess this depends on how you look at it... the "Rules" haven't changed, its the enforcement of the rules that are changing.

The absolute Irony here... if you actually understand the rules, and follow the rules, you will be further along financially. If you set up even the most basic of business structure ( a DBA ( Doing Business As) and open a business bank account ) you could EASILY earn $100,000 GROSS, and have a tax liability of $0.00 at the end of the year. Its NOT how much you make, its how much you SPEND ( and what you spend it on ).

Every year the IRS comes out with a document that goes over all of the changes, and all the who how and whys of taxes. THIS YEAR... this document is a fun read, it is crazy stupid, The more of it I read the more absolute craziness I find. ( https://www.irs.gov/publications/p17 )

Gems like this:

• If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.
• You must report Bribes and Kickbacks
• Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity

They dont care how you got it, the IRS just wants its cut, and to a degree I say rightfully so.

Think about this for a moment, Venmo transferred $159 Billion Dollars in 2020. I will bet that number is close to $300 Billion for 2021. I can only imagine that over 99% of that was moved around tax free.

So what exactly is going on? I have a theory, and I will share it... We all watch the news, and people that do bad things MIGHT get arrested, and then they are immediately let out. Bad things being snatch and grab, or dealing or whatever... These people make a good amount of money, but it is not LEGIT money... they cant buy a house as an example. BUT if you simply report the income on your taxes, guess what? you just laundered all that cash - it becomes Legit money.

So in many inner cities around the country they have been trying to figure out ways to get drug dealers specifically to buy dilapidated properties and fix them up. Baltimore Maryland as an example had a program that would allow an exemption of proof of income to BUY a property, but the issue was then the money needed to renovate the property, so the program kind of fell flat on its face. But NOW, The IRS / our Government has side stepped all of the laws pertaining to Laundering money, because once its reported on a tax form... Its Legit, and you dont have to run the cash through a bank to do it. Mark my words, in the next few years you will see crazy revitalization of inner cities.

I love this stuff, No the rich DO NOT write the tax code. Business' on the other hand... Business interest write tax code.

Let me throw something at you... Elon Musk is going to pay the most ever paid by one person in one year. If you in the slightest pay attention to his financial life you understand that amount he will be paying is directly correlated to the stock he personally sold, so he could turn right around and buy his contract shares and in essence double his personal stock holdings. So the question... How many houses did Elon Sell this last year? I believe the answer is 3 homes, and sold them for over 100 Million, He made profit on ALL of his homes, and yet look at 2020 where he sold 4 homes and filed a big fat $0.00 in personal income.

THIS has NOTHING to do with the rich getting richer... this has NOTHING to do with social or economic lines. This has EVERYTHING to do with playing the game, and playing by the rules. Everyone is so busy complaining about the game, and trying to do everything they can to cheat the game, and yet if the actually would justlearn the rules, they would be ahead.

I dont care who you are and what your circumstances are, if YOU are using the 1040EZ form to do your taxes - your an idiot - plain and simple - and at the end of the day you DESERVE to pay taxes.

There is a link to the IRS pub 17 above in this post... start there - educate yourself, not on the GAME, but the RULES to the game. Learn how to play the game, and your financial life will be all the better for it.

Tax the rich they say...they don't pay their fair share... Uh ok.

I liked the comment that someday they would find a way to tax the cash... They will... They are going after any deposits made over $600.

If people only knew.... ever notice when you goto the bank and withdraw cash they run it through a "Money Counter"? did you know said money counter tracks the serial numbers of the bills? When you make a cash deposit, they run it through same said "Money Counter". So in a way they kind of understand who the money came from and who it went to. BUT don't worry its just a data base.. they will never use it.

And then there is the whole crowd... Ill just pay cash for everything... car payments in cash? House payments? Utilities? credit card payments?

If you are trying to "Hide" THEY ( the IRS ) have you coming and going... they reality is as a good American, you should just be reporting it all, getting the deductions, and getting a larger return. And THAT is the funny part... "I need the money" as one person in the article said.... Uh you dont want more? Oh thats right you are cheating the system and thinking your getting ahead, and in reality, your losing. Its silly really.

This is a change in "Reporting" and not the actual tax liability. Prior to Jan 1st 2022, you would have had to make 200 transactions in total with a total amount over $20,000 in order to get a 1099-K from say e-Bay or Amazon. The cash apps I do not believe had to report at all? - I could be wrong about that, but if they did, it would have followed the same 200/$20,000 rule.

The whole Biden said he wasn't going to raise taxes on the poor and middle class is again amusing to read - or listen to. Basically if you EARN money, you are supposed to report it. That obviously wasn't happening - "voluntarily", so now its reported.

Once again I am a redneck with a DBA and a Business Bank Account, I'm not in any way shape or form a financial advisor.

Say you are working at Walmart, you make $10.00 an hour, you earn $20,000 a year and you sell stuff on eBay or Facebook Marketplace ( even better because that would be cash ) and you earn say $5000 a year doing that stuff.

If you are selling personal items... chances are better than good that you are selling items for less than what you paid for them. You buy a couch new for $500 and a few years later you sell it on Marketplace for $200. You DO NOT have to report that income, You are selling at a LOSS. for good measure as of Jan 1st, I would keep record of the transaction. And to be overly clear, because it is a personal item you CAN NOT report the LOSS.

What happens if you bought a couch for $500 ( and later sold it for $800? You obviously are collecting $800, BUT only $300 of that is actual "Income" Total sales price minus COG ( Cost of Goods ) is what is considered "Income". Again after Jan 1st 2022 you will want to at the very least keep records of this.

So why exactly do I find the whole situation laughable? The moment you start filling out the Schedule C form on your taxes, there is a litany of deductions. COG being the most basic. The cost of your internet service, your cell phone bill, a portion of your house bills ( rent/mortgage, electric, Gas, Water ), travel expenses, the time and resources to clean the items you are selling, All those shiny objects you buy to "Learn" from - yes those would be deductions. Bought a new computer? deduction, Tools, office furniture, Business cards, the cost of Google Ads / facebook ads.

Again I cant say this enough, the MORE familiar you are with TAX CODE, the more money you will make. If you OWE money to the IRS after doing your taxes... that means you did not SPEND enough in assets. Do you want to write the IRS a check, or have new tools, or computer, or whatever? The only catch is you have to spend the money prior to Dec 31st... you cant get into April and say damn I should have spent more.

For the average person that thinks taxing the rich is a good idea.. they need to pay their fair share. Let me throw some light on the idea, and you will see just how silly it is. If you make $1,000,000 and are taxed at 40% and at the end of the year you owe no taxes, that means you understand deductions. So it would not matter if you were taxed at 90%, you would still not owe any taxes.

Politicians are LYING to you, OR they are just that stupid... But basically the game here is "Look we are taxing the rich more" but you can raise the tax rate all you want, its not until you see them ( the Gov ) removing deductions, will you see an increase in Tax revenue from the "Rich" and we all know that is not going to happen.

If you look at the premise of the Build Back Better plan costing ZERO dollars... the rich are going to pay for it, its a straight up LIE. There is not a single change let alone reference to removing tax deductions in any of the 1500+ pages of that piece of legislation.

But again, the SECRET of the "rich" is TAX CODE, the little guy working at Walmart, with a side hussle can play the exact same game.

You've always had to report your online income. It's not even about enforcement. Prior to now, if you didn't report and were audited, you'd be in doo-doo.

Don't ever get your tax info from Warrior Forum. My sister is a CPA. And I have fact checked Warrior Forum bull with her in the past. And it never passes.

Quick example --

If you buy a computer for $1000. But also use it for entertainment? You can only deduct a PORTION of that $ 1000.

But WaFo members will tell you, you can deduct it all.

No.

Won't pass an audit.

WaFo tax advice is cut through people's personal political opinion of what they think "should" be true.

But is not.

Not per the actual IRS.

Some interesting details from this; Dogecoin is sitting at 2x of what the American Dollar is "worth" - think about that one for a moment. Inflation, debt ratio, Foreign Currency Reserves, Note yields etc etc the American dollar is worth $.0773. Dogecoin is sitting at $.14 right now

There was a series of tweets a while back, where the official Dogecoin Twitter account tweeted Musk being the "Unofficial" CEO... in the same time frame, Musk tweeted not only was he going to be the first Trillionaire, BUT the first Dogecoin Trillionaire. Tell me that Musk asking McD's to accept Doge doesn't sound like he is more than just invested in the coin? more like he OWNS the coin.

ID.me All by itself, its standard Govt operation... The whole reason for the contract is because of a "breach" within Equifax. Did you know the ENTIRE Social Security Database was breached a number of years ago? Were you aware in 2019 Facebook's entire 530 Million user data base was breached, and then was on the "Open" dark web market in 2021?

I simply dont believe there is such a thing as "Online Security" and the more we press to have these large databases of such sensitive information... we are just asking for trouble.

Throw into the mix, Mr. Buttigieg's unveiling of how the $1.2 Trillion Infrastructure plan is to be spent... less on actual Infrastructure, and more on Children... on Traffic Cameras, and Facial recognition cameras. How exactly do Facial Recognition cameras work without a facial database? Oh wait... they will have one. MARK MY WORDS.. there will be a whole lot of wrong place at the wrong time, that comes out of that one.

What gets REAL interesting... to log on to the IRS you will have to send a selfie video... each and every time you log on. I personally log on OFTEN. I personally log on from behind a pretty robust firewall, and a desktop computer that by design does not have a camera - because the slightest slip up and you can give "Permission" to use said camera.

At some point there will be an APP. within the APP will obviously be access to YOUR camera. It WILL NOT be a single use authorization of use..it will be a FLAT Authorization of use... meaning at any time for any reason deemed valid, they can and probably will access your camera and audio and listen and watch - Much like Alexa and Google home products. Or iPhone and Android phones.

What gets interesting is being someone that stays up to date with tech..it seems to me that Blockchain, would be a better solution. An NFT form of ID, There can only be one... and its ownership would be trackable. If say a identity thief were to get my NFT ID there wuld be a transparent record of it moving from MY wallet to THEIR wallet.. oh wait that sounds secure now doesn't it?

And yet... we are pressing forward with a technology that basically has no rules of law in regards to use and sharing... and be it a third party or the Govt... its not going to be pretty.

Current and future "Privacy Laws".... they really dont exist... they are a series of laws that allow us to think we are protected... we are not in the slightest "Protected" we are infringed apon every moment of our day. Just ask those that were arrested for Jan 6th violations... Phone location was a key factor in determining location. Bank records were used... and not a Subpoena one was requested or issued in either instance. I dont care what side of the Jan 6th discussion you fall onto... the absolute greater issue is Personal Privacy - and we don't have any... and any amount we might have is just sitting on a server waiting to be breached.

Not that I am aware of, just the States.