Tax question

[Anonymous]

While using an online tool for filing tax returns, I am seeing for the first time a mention of 1099-K and it is related to selling personal items. I sometimes sell used items on FB marketplace - example a kids used bike for $20 since the kid has outgrown it. I never had to show all that in tax returns before and there were never any gains on sale of used things.
Did this exist before or is this new this year? If you sell used items for minimal prices, do you always fill out 1099-K?

[Anonymous]

If you sell things for less than you purchased them for you don’t need to worry about taxes.

If you got a 1099K you should report the income on your return but you may be able to avoid paying more tax, but if you didn’t get a 1099k and aren’t making a profit don’t worry about it.

[Anonymous]

This is OP. Who sends 1099-K? Do you mean these companies like FB and Ebay send people 1099-K for any online sales?
I have never gained anything through sales on FB marketplace and I am not on Ebay. For example, if I buy a kid board game for $20, I sell it for $3-4 when it gets outgrown.

[Anonymous]

Anonymous wrote:This is OP. Who sends 1099-K? Do you mean these companies like FB and Ebay send people 1099-K for any online sales?
I have never gained anything through sales on FB marketplace and I am not on Ebay. For example, if I buy a kid board game for $20, I sell it for $3-4 when it gets outgrown.

Uber. Etsy. Poshmark. Ebay. Airbnb. I think FB marketplace is going to have their payment processor send it.

They don't send these unless you hit a minimum $ amount or transaction threshold. If you are selling the occasional kid's game for $3 you don't need to worry about it.

[Anonymous]

In my software, there is an option to report it as hobby income. Once you do that, it asks you to put in the original cost you paid for the goods you sold. As long as it's higher than your sales, it will go to net zero and you won't owe any taxes on it.

[Anonymous]

Thank you!

[Anonymous]

if you had income, it was always supposed to be taxed; it's just that now more places are sending you a 1099-k to make it easier to report it. The tax law hasn't changed. It's like how banks send a 1099-INT for interest over $10 but you are still supposed to report if you got $8 of interest income.