And with that done... There are some changes coming on Jan 1 2022. There are 2 changes in particular that need to be looked at.
#1 If you accept payments from Paypal or Google pay, Or Apple pay, or Venmo or Stripe, or Facebook payments or Amazon Pay, or many other payment houses and make more than $600 in a year from that AND live in the United States, you will get a 1099 at the end of the year... MEANING that amount will be taxable, and that amount will be on record with the IRS.
#2 If you are selling on a platform such as eBay, or Etsy, or Facebook Marketplace ( and use Facebook payments ) Amazon, Bonanza and again many more and live in the United States and make more than $600 in a year from that, you will get a 1099 at the end of the year... MEANING that amount will be taxable, and that amount will be on record with the IRS.
So who should really be paying attention to this? well EVERYONE, I believe it will fall in 2 ways. Those that literally need to stop selling on Dec 31st, and those that need to understand the rules and move forward.
In this post in particular, I will focus more on the ones that should really think about quitting. I am sure every situation is different so again I am not advising anything here, just educating.
So if you are on Welfare, Collecting Food Stamps, On Disability, Unemployment or any other program that is compensating you for your inability to earn income, this may not effect you come January, but it will get darn ugly come January of 2023. This group specifically should REALLY think about stopping reselling - OR understand that you will need to step up your game to replace the Funds you are currently getting.
Just to make this clear, I am not bashing anyone on these programs - more power to you. I DO understand how important that money is, to you and your family. I am simply trying to educate you to what is happening and how it could effect that income.
When you go out and research these changes the general consensus is that it will effect the middle class the most. I personally dont see that being the case. I think its the financially strapped lower class that is going to get just crushed. There is the group I mention above, and then there is the group of how can I say this... on the dark side of the economy? Snatch and grabbers, Dealers, husslers, thieves etc... I think in 2023 there will be a HUGE hammer that falls. A HUGE hammer.
The flip side of this is those that need to understand the HOW and WHAT to do to actually take advantage of these changes. I will be making a post either tonight or tomorrow on my eBay thread.
I hope the best for everyone - hope you all had a great Christmas, and have a great New Year!