$600 tax/Venmo/PayPal

WIndOnYerGrape said:

Ok friends and family isnt taxable. That means when they send you a tax bill, you have to prove that.

Alot of people are going to think they can skirt the system by taking goods payments via FF payment.

Just because you clicked that button doesn't mean there is some magical thing that keeps the IRS out of it.

Its not political speak to say that they just hired 87,000 IRS agents.

They didn't hire them to twiddle thumbs all day.

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My sister sent me 90$ to pay for half my airfare, that is not taxable income...lol, and I don't nor won't have to prove a thing. I've done such things for my entire life.

The IRS only knows what is reported to them, forgoing any audits, and even then, they won't audit your friends and family transactions on paypal unless you're clearly abusing that payment system for the transactions of goods and services, likewise with Zelle, cashapp, venmo...

Anyone using those systems to evade taxes is not too bright.

-Matt

Ok. $90.

Now add $510 more (doesn't matter how many transactions it takes) You will have to prove its not taxable.
Doesn't matter what you've done your whole life. Doesn't matter to the letter you get or the IRS person on the phone.

Doesn't matter if you bought that couch you just sold 30 years ago. You show money in.

Clicking FF or cashapp or whatever, doesn't make it some kryptonite against the IRS.

Saying IRS only knows what is reported is down right silly. If that were true, nobody would ever get caught.

You aren't gonna use it to abuse the system, good on you. At this point your just repeating what im saying (with all due respect )

WIndOnYerGrape said:

No political speak per the forum rules.

Its not $600 per transaction. Its $600 total and yes you will have to prove everything.

If you take friends and family payments, especially alot of them or large amounts....you will have to prove it.

The 20k 200 transaction rule is gone.

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That's what a CPA told me. Especially with friends and family if you get a audit you better have a lot of paperwork....folks it's time to go back to the old USPS Money order....I don't even a PayPal account.

Stubbers said:

Friends and family isn't taxable, first off paypal does not even report it to the IRS. Secondly, if a friend hands you a suitcase for 15k and says happy birthday, you don't have to report that either, unless it puts you over the 17k annual limit (of 2022) for gifted 'monies'.

-Matt

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Actually getting a gift over $17,000 is not taxable…for the recipient. The person who gave the money must report it and pay a gift tax for amounts OVER the $17K.

ChRiSiS said:

Actually getting a gift over $17,000 is not taxable…for the recipient. The person who gave the money must report it and pay a gift tax for amounts OVER the $17K.

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I already stated this...lol Read Post #13


"Generally, the answer to “do I have to pay taxes on a gift?” is this: the person receiving a gift typically does not have to pay gift tax. The giver, however, will generally file a gift tax return when the gift exceeds the annual gift tax exclusion amount, which is $16,000 per recipient for 2022."

Bud-sc said:

That's what a CPA told me. Especially with friends and family if you get a audit you better have a lot of paperwork....folks it's time to go back to the old USPS Money order....I don't even a PayPal account.

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USPS Money orders are taxable when you're doing business / trading goods and services, we shouldn't be discussing ways to circumvent taxes....

-Matt

Trust in the Lord, all others bring cash.

This here sums it up.....

It's now 2024 and anyone still accepting "goods or services" should be careful. If you don't have receipts for the items you are selling you may be in for a surprise. You may be anyway when PayPal sends 24% of your sale to the IRS.
paypal statement

They are just following the law.
Tax the little guy!
Let the big guys ride for free.

i have alot of friends and family here......

gendoc said:

i have alot of friends and family here......

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You can take all the money you want via FF....but you will have to prove it.

This is how the IRS works: Send you a bill for not paying enough taxes, with penalties......now prove you dont owe it.

Oh you cant? Pay up.

Those 87,000 new IRS agents we just paid for, arent sitting around doing nothing.

i'm all good with proof,
do you think in January 2025 there will be 87,000 added to the unemployed percentage calculation ?

So if I bought a gun new for say 300, and sell it on here for 250 and cover the shipping, making my "profit" at say 200 bucks, I won't have to pay taxes providing I can prove the aforementioned amounts?

I don't think I've ever made an actual profit on any of my PayPal transactions, G&S or F&F.

gendoc said:

i'm all good with proof,
do you think in January 2025 there will be 87,000 added to the unemployed percentage calculation ?

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I guess that doesn't matter this current year. Also I suppose it depends on your opinions of the last election.

WIndOnYerGrape said:

I guess that doesn't matter this current year. Also I suppose it depends on your opinions of the last election.

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Pretty sure no one is saying "I'm glad I voted for him!" When they spend 300 bucks on groceries that cost 150-200 during the last guy. Or how about our utility bills being almost doubled. Yeah, voting with your feelings has consequences.

This tax change went from paying on amounts over $20,000 down to amounts over $6,000 total, if I recall correctly
Also, it has nothing to do with who you voted for as the change had bipartisan approval.
Let's not have a political ruckus about it, and just figure out our best ways to avoid being taxed. Please!!

"over $20,000 down to amounts over $6,000 total"
$600. Is the correct number, and that is for total sales for the year. As long as you have receipts valid for the IRS you should be ok.

Yes, currently $600, although that has been postponed again, and deferred to next tax season. The good news is there is an effort to roll it back, and increase the reporting amount to a more reasonable number, with some calling for it to be rolled back to the previous amount (20k).

There's been a lot of misinformation on this issue, and most people don't know anything about it, and would be blindsided if it was implemented. As I stated last year(in this thread), windonyergrape has it 100% right, then and now.