NEW TAX REQUIREMENT- UPDATE DELAYED AGAIN-YES!

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*Update-IRS delays $600 reporting rule again! *Update- my ad is from last year 2022. In 12/22, the IRS delayed this by a year, which unfortunately I closed for nothing, but atleast some got lucky- Just got an email from Posh on this. I’m not happy about it of course.I don’t consider myself self-employed or a business. I am simply trying to clean out my closet and get rid of things I don’t use or need or never wore & things I cannot return to store. Things I already paid tax on & bought with taxed income! It’s nothing more than having a rummage sale. If they are going to turn in all these sales including shipping costs & their fees etc.& make it look like I made that much money without deducting that & just showing my earnings, I don’t understand that. It sounds like it’s going to be a big hassle at tax time to deduct all that and file paperwork etc. I don’t keep receipts for every single item I’ve ever bought or know which is for which. I also don’t understand where it says some sales might not be counted like sale of 2nd hand items? Not to mention if they're going to consider us self-employed, then we should get to also assign our self a wage as an employee because I spend countless hours on here sharing my & others’ items to make a sale, listing items, taking pics, drive to PO, tape packing material, gas & most importantly my TIME, in the end I prob really make nothing, but they're going to try to take a cut? $$ I may have to close my closet once I hit $599.

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57 Comments

lizam222 I wish I had got the email so I could see what they are saying. I know I heard this was happening this year. and it's on every site once you make over 600. but I think we can claim it as other income, hobby. but don't quote me on that. I think if it's just selling your own stuff, not for a profit , it won't be taxed. I'm not sure though

Jan 26Reply

jguilbault13 dang...I'm glad I saw this! I'll have to check my email. I'd agree and consider not selling...I don't make enough money to make it worth it.

Jan 26Reply

bubbles1971 @jguilbault13 yeah they could have given a heads up before now too, I think I may have already hit the $600 if they go by gross incl the shipping and tax, which should not be counted on me as income, they should only add up seller actual earnings

Jan 26Reply

bubbles1971 @lizam222 @lizam222 you"ll prob be getting the email too soon. I just cannot believe the $600 limit-:seriously they are so worried about the little people maybe making a whole 600 bucks in a year, (with all the work that goes into it), and bringing on all that ppwk/hassle on themselves and everyone for 600 bucks! I mean even like $5000 or some may be a better figure. Ridiculous.

Jan 26Reply

jguilbault13 @bubbles1971 yeah...the shipping is killer, plus PMs fees!? yuck. $600 what was waste. I understand a few thousand but $600 seems silly. possible game changer! Figures I just bought a bunch of stuff to sell haha!! Good luck with whatever you do! Have a great night!!

Jan 26Reply

aldute I buy a lot of things on Poshmark , does that count as a deduction?

Jan 28Reply

bubbles1971 @aldute you would think since it's kinda like a trade, sell your things to get credit to buy other people's things! But they prob don't look at it that way..

Jan 28Reply

thewalkencloset @bubbles1971 I totally agree. But remember, this is not Poshmark’s doing. This is our federal government sneaking in more taxes on the middle class. It was included in the American Rescue Act of 2021. That “Rescue” bill changed the threshold from $20,000 to just $600! Completely idiotic but a smart/sneaky way to raise taxes on a growing segment of the economy.

Feb 07Reply

thewalkencloset @bubbles1971 oh, and still no email from Poshmark even though I broke $600 a while ago. 🙄😤

Feb 07Reply

bubbles1971 @multarjr yeah I meant "they" as in IRS in above on spending credit as deduction😐 $600 is ridiculous- worrying about little people maybe making $50/month or $1.66.day! If you factor in the time hours spent on here trying to make a sale (sharing) alone wipes out any profit.

Feb 07Reply

thewalkencloset @bubbles1971 it is crazy. Just another tax. But it’s a tax that hurts casual sellers, mostly people just looking to get rid of stuff. Does the IRS expect anyone to report sales in excess of $600 from a garage sale or two over the year?! Of course not! And to your earlier point, we’ve already been taxed on this stuff (income tax, sales tax, etc.). I understand taxing “boutique” or “wholesale” because it’s for profit but not reselling previously owned goods.

Feb 07Reply

thewalkencloset @bubbles1971 What really ticks me off is adding shipping, canceled orders, returned orders and such to the $600 threshold when that is not income at all! 😤🤬

Feb 07Reply

bubbles1971 @multarjr that's nuts they still haven't emailed you- I wish I'd know about this earlier last year or that they'd have waited til 2023 to start, then I'd of busted my butt to get as much gone as possible

Feb 07Reply

thewalkencloset @bubbles1971 totally agree. As soon as I found out (via M’s constant bombardment), I created my listing but that was late December. Not nearly enough time to get the word out to “buy all of my stuff before the new year.” I actually think that if I continue selling, this will bump my family up into the next tax bracket. 😫

Feb 07Reply

bubbles1971 @multarjr I know, it should only be net sales after fees counted/reported as earnings, since we as sellers don't receive the ship or tax money either, ridiculous, and a cancelled sale should be removed from the books/sales report.

Feb 07Reply

thewalkencloset @bubbles1971 So, I got my FIRST notification from PM about this. I received the notification to enter my tax info when I went to print the labels for tonight's orders. I couldn't access the shipping labels until I entered my info. THAT is frustrating & to me, wrong on so many levels.

Feb 09Reply

bubbles1971 @multarjr oh wow talk about late notice- I have a feeling alot of people are going to be “surprised “

Feb 09Reply

annieschmucker @bubbles1971 it was great being here. But nope, I’m out. LEAVING. This is total insanity! It’s going to COST me to sell on posh now. And not only that, no warning on this?!?! 🤦🏼‍♀️🤦🏼‍♀️🤦🏼‍♀️

Feb 14Reply

annieschmucker @multarjr same!!! No warning, till, “nope you can not print a label until you add your social!” Seriously?! I still haven’t.... I’m so torn

Feb 14Reply

bubbles1971 @annieschmucker yep, ridiculous they couldn't sent out a mass email on Jan 1st to all or put in on the front page or top of newsfeed, anything..

Feb 14Reply

thewalkencloset @annieschmucker See, that is so wrong. Submit your SSN or you can't fulfill your order. With no warning. I went ahead and did it. I didn't have the heart to cancel 3 orders and disappoint the buyers.I want to leave but I can't.

Feb 14Reply

ajcollections @bubbles1971 Hi! Unfortunately this has been all over the news since mid last year. So upsetting. It's the new Govt. Administration who did this. It applies to various apps.😩

Mar 03Reply

poshstylesbyme I was wondering when this was coming and it’s here…I do my own taxes every year as self employed but that changed last year. I have issues with many things on not just this platform but them all. We shouldn’t be paying sales tax on items that were taxed the first time. Thank you for posting this because I hit over $600 by March. Now my closet is down due to my living situation. I wish you the best in whatever you do sweet Pff 💕🤗

Mar 26Reply

poshstylesbyme @lizam222 You are correct. I filed under “other” for this year. I haven’t 🤞🏼 had to owe anything. Previous years I was self employed and hit with $1800 self employment tax. I have a child so it deducted from that. It didn’t use to be like that though. I changed from self employment to just other as my business took a huge hit and I considered it dissolved.

Mar 26Reply

veronicamonell Are you staying?? I saw you share 2 of my listings! Happy to share back but ur listings aren’t available yet still I see. Just wanted to check in posh bestie!!💜💜

May 02Reply

cicherry @bubbles1971 hi friend, thanks for sharing. When are you coming back ?

May 07Reply

pisceanrose @multarjr I never got email either

Jul 07Reply

omsamadhi @bubbles1971 So sad to see this!! I’m thinking of closing my closet as well when I think of all the time I have put into photos and sharing. I do enjoy my time on here as I do purchase ALOT! But having to be careful with my sales, when all I want to do is…out with the old, and in with the New ( new to me ) 😃 I’m not going to be as active as now, I’m worried about how much I sell. Prices are going down to nothing and I will have to throw out most of my stuff:( it was a good system.

Jul 15Reply

omsamadhi @bubbles1971 Buy from others and sell to others. I like the idea of the Merry Go Round with items. Oh well! I really appreciate all the times you shared my items and wish you all the best! Thank you also, for sharing this information!!!😘😘

Jul 15Reply

debbieheim71 @sdbeachbetty @treasureup have you heard about this?

Sep 01Reply

treasureup @debbieheim71 thank you. However, we live in the wonderful state of California where this has been the case. Trust me, if California can get anything from us, they do 🧐

Sep 01Reply

sdbeachbetty @debbieheim71 yes and is nuts. We make such small profit as it is.

Sep 01Reply

bonbonbonboston Ugh! I just closed my closet for the rest of the year. Total bummer. I use PM to swap items and don't want the extra administration of keeping track of income and expenses for each item and filing a separate tax form. I don't have receipts for many items anymore. Here's a good article that talks about it. $600 is WAY too low for this kind of thing. We can write our congress people asking them to revisit the threshold. https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-eb

Nov 02Reply

bonbonbonboston @lizam222 As long as you sell your stuff for less than you paid. As if it's worth it to track all of that when this isn't a business.

Nov 02Reply

bonbonbonboston @bubbles1971 Totally agree!

Nov 02Reply

sarahs567 @aldute That’s a good question!!

Nov 11Reply

sarahs567 @thewalkencloset You’ve made a very valid point! Yes, it’s no different than having a garage or yard sale. So there has to be a way to not consider this income over $600. If anyone is an accountant on here. Please share how those of us that are not a business, wholesalers or boutique handle this situation??

Nov 11Reply

thewalkencloset @sarahs567 I wish there was a way around it. The only way is if the republicans win the house and they overturn it. For more info, see my “Tax Man” post in my closet. I added an accounting link in the description that goes into detail. You’ll have to type in the link or copy it from a computer.

Nov 11Reply

thewalkencloset @sarahs567 and read my last three comments on that same post.

Nov 11Reply

cicherry @bubbles1971 hi friend. Are u still on vacation mode ? How have u been?

Nov 16Reply

bubbles1971 @cicherry ok- yep, til Jan- hoping this gets undone!

Nov 17Reply

bubbles1971 Under the law, beginning Jan. 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee’s an IRS Form 1099K, Payment Card and Third-Party Network Transactions.

Dec 24Reply

poshstylesbyme I hit the $600 apparently and got the update from them before I could ship a sale out. They wouldn’t let me bypass it either. They held my Sale hostage lol 😤 I’ve been so over this place for awhile. It started with all the changes on the Ambassador program to allowing everything that was once prohibited to tax on top of tax. All sites are doing this now and it’s absolutely not acceptable. Sales tax was paid for just about everything I own as well. Cont…

Dec 30Reply

poshstylesbyme They’re double dipping on top of helping the rich even more. Welcome to the future of America. Thank you for posting this my Pff. I hope you’re doing well and had a great year 💕 Stephanie

Dec 30Reply

bubbles1971 @poshstylesbyme well Congress was working on getting the limit raised but not in last bill, but I read IRS is waiving it for 2022 now, so you should be ok if exceed, they aren't going to count it- figures, I closed all year for nothing - well atleast some got lucky

Dec 31Reply

bubbles1971 @poshstylesbyme $600 was/is ridiculous, technically you can only sell about $400 bc they count the tax, posh fees, shipping and cancelled sales against you toward limit, even though it's NOT income to you!

Dec 31Reply

beansmama19 I’m staying. A self employed person has always been required to claim income over a certain amount. I understand taxes and will plan and pay quarterly payments if I need to.

Jan 01Reply

bubbles1971 @beansmama19 I don't consider myself self employed, (I have a regular full time job)- also they have flat out said if you sell your own personal items at a loss is not income- I'm just trying to declutter

Jan 01Reply

bubbles1971 @beansmama19 " Losses on personal items are not deductible and are not reported on your tax return. If this is the case, you do not need to report this form 1099-K on your tax return. Just keep that form in your tax records along with any proof you may have that it was for the sale of personal items at a loss. " Just an expensive hassle for some, if you don't have receipts from clothes you bought 7 years ago

Jan 01Reply

jackiestutto @bubbles1971 The IRS put a whole on this... until 2024 google it. I saved the original news article on my computer 2 weeks ago but my computer crashed Monday so I don't have it. But Google it!! If you can't find it let me know and I will try to find it!!!

Feb 02Reply

bubbles1971 @jackiestutto yes I did know about that, unfortunately I had closed last year to avoid and then IRS delayed it so I missed out. That's for 2022 sales only though, so it's back to $600 for 2023 sales until unless Congress repeals or reduces - hopefully😊

Feb 02Reply

jackiestutto @bubbles1971 Yep. All the selling platforms got together and contacted Congress about people selling their belongings and Collectibles , not new items being bought wholesale to sell, so they halted it to 2024. Hopefully they will stop it for good!!

Feb 02Reply

pharmgyrl @thewalkencloset exactly! But they won’t touch those tax gifts to the wealthy!!

Jun 03Reply

bubbles1971 UPDATE- " Instead, the IRS will rely on a preexisting threshold — more than 200 transactions that exceed $20,000 in income — for sending 1099-Ks in early 2024 for completing the current tax year's returns. Reporting threshold raised to $5,000 In a key revision to the law, the IRS said that starting in tax year 2024 it will transition toward the new rule by increasing the reporting threshold from $600 to $5,000." YES!!

Nov 22Reply

bubbles1971 @jackiestutto YAY! Finally some good news! " IRS delays $600 reporting rule for online payments — again" "the IRS will rely on a preexisting threshold — more than 200 transactions that exceed $20,000 in income — for sending 1099-Ks in early 2024 for completing the current tax year's returns"

Nov 22Reply

jackiestutto @bubbles1971 Great news!!

Jan 21Reply

bubbles1971 The latest: The Internal Revenue Service extended its transition relief Tuesday for the new Form 1099-K information reporting threshold, setting it at $5,000 for 2024 and $2,500 in 2025 before reaching the statutory level of $600 in 2026 and thereafter.

Nov 27Reply