New Tax Codes Impacting your Dolly Dealings
Just a heads up, the new covid relief bill has a change to the tax code that will impact ANYONE using online selling and transaction platforms like eBay, paypal, etsy, etc... It used to be that over 200 sales or $20,000 in transactions that would trigger a 1099-K (unless you lived in Mass. or Vermont and the threshold was $600). Now in 2022...it will be $600! So you should start planning to save some money back to pay income tax on NOW or you will get a very unhappy surprise. As a freelance theatre designer, I have been getting 1099-Misc forms for years whenever I make more than $600 on a gig. This is not new for me. But many people on etsy, ebay, and other gig workers (i.e. casual Uber eats delivery), etc have been able to operate under the radar because of the higher thresholds and were able to get away with not claiming that income on their yearly taxes. This will impact people who treated any etsy or ebay business as a hobby. This pretty much eliminates that angle and means y