{"id":507472,"date":"2022-11-07T00:18:03","date_gmt":"2022-11-06T21:18:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/"},"modified":"2022-11-07T00:18:03","modified_gmt":"2022-11-06T21:18:03","slug":"online-secondhand-sellers-balk-at-new-tax-reporting-threshold","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/","title":{"rendered":"#Online secondhand sellers balk at new tax reporting threshold"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26b73e9a0d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26b73e9a0d3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/#Online_secondhand_sellers_balk_at_new_tax_reporting_threshold\" >Online secondhand sellers balk at new tax reporting threshold<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/#Seeking_a_return_to_20000\" >Seeking a return to $20,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/#Congress_takes_notice\" >Congress takes notice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/#A_%E2%80%98big_deterrent\" >A \u2018big deterrent\u2019<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Online_secondhand_sellers_balk_at_new_tax_reporting_threshold\"><\/span>Online secondhand sellers balk at new tax reporting threshold<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/11\/1099kform-istock.jpg?w=900\" \/><\/p>\n<div>\n<p>Melissa Williams has been buying and reselling her children\u2019s clothing on a variety of online platforms for more than a decade.<\/p>\n<p>But a new tax barrier may force her to pause her accounts and abandon what she calls a sustainable economic solution for her family.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>\u201cIf I couldn\u2019t do what I do and buy hand-me-downs from other sellers, then we\u2019re headed to big box department stores, especially where I live,\u201d said Williams, a stay-at-home mom from Walla Walla, Wash.<\/p>\n<p>The obstacle comes from a revised portion of the tax code included in President Biden\u2019s\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/1319\/text\">American Rescue Plan of 2021<\/a>, which requires sellers to report transactions over third-party networks\u00a0that exceed $600 \u2014 a considerable shift from the previous $20,000 threshold.\u00a0<\/p>\n<p>Sellers must fill out a 1099-K form for such transactions, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.irs.gov\/newsroom\/reminder-service-providers-others-may-receive-1099-ks-for-sales-over-600-in-early-2023\">while\u00a0the\u00a0IRS says<\/a>\u00a0the change impacts only tax reporting rules \u2014 rather than broader taxability of income \u2014 for smaller re-sellers like Williams, it\u2019s a big change.<\/p>\n<p>She said she has already exceeded the $600 threshold on children\u2019s fashion marketplace Kidizen and on e-commerce site Mercari, so she\u2019s considering putting holds on both accounts.\u00a0<\/p>\n<p>\u201cIt really helps us financially, being able to sell my kids\u2019 used clothing and then turn around and buy their next size up,\u201d Williams told The Hill.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seeking_a_return_to_20000\"><\/span>Seeking a return to $20,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now, a coalition of online retailers including Kidizen, eBay, Etsy and Poshmark is pushing for a return to the higher threshold.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>About 47 percent of American resellers polled in a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bipac-momentum-media.s3.amazonaws.com\/Media\/assets\/000\/035\/087\/original\/coalition-for-1099-K-fairness-2021-survey-results-report.pdf\">February 2022 survey<\/a>\u00a0said that they weren\u2019t aware of the new reporting requirements, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/1099kfairness.org\/members\">the Coalition for 1099-K Fairness<\/a>, which also includes Airbnb, Goldin, Mercari, OfferUp, PayPal, Reverb and Tradesy.<\/p>\n<p>The survey, which polled 757 people whose 2021 sales were under $20,000, found that 69 percent of respondents now intended to sell less or stop selling. And 54 percent said they would likely dispose of preowned goods instead of selling them, potentially dealing blows to both the online market and reuse-based sustainability efforts.<\/p>\n<p>\u201cIf you\u2019re someone like me, you\u2019re finding this stuff in your closet when you clean out for spring, or you\u2019ve got stuff in your garage,\u201d Ren\u00e9e Morin, chief sustainability officer for eBay, told The Hill.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>\u201cYou want to participate online and put these goods into e-commerce and avoid sending them to a landfill,\u201d Morin said.<\/p>\n<p>At Kidizen \u2014 which Williams cites as her favorite platform \u2014\u00a0sellers across the U.S. ship directly to buyers, said co-founder and CEO Dori Graff. Most resellers, she said, are \u201cgetting their inventory from their own kids.\u201d<\/p>\n<p>\u201cWe are very community-driven,\u201d Graff said. \u201cWith parents going through a similar transition at the same time, it kind of bonds them in a way that goes way beyond commerce.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>The downgrade from a $20,000 to $600 reporting threshold \u201cis affecting millions of online sellers,\u201d added Mary Fallon, Kidizen co-founder and chief creative officer, who said that more than 75 percent of the site\u2019s sales this year were from sellers whose transactions exceeded the $600 threshold.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Congress_takes_notice\"><\/span>Congress takes notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several introduced bills from both sides of the aisle propose either returning to the $20,000 limit or settling on a compromise number.<\/p>\n<p>The Cut Red Tape for Online Sales Act, sponsored by Rep. Chris P<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>as (D-N.H.)\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/7079\/titles?q=%7B%22search%22%3A%5B%22congressId%3A117+AND+billStatus%3A%5C%22Introduced%5C%22%22%5D%7D&amp;r=1&amp;s=1\">as HR.7079<\/a>\u00a0and by Sen. Maggie Hassan (D-N.H.) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/7079\/text?q=%7B%22search%22%3A%5B%22congressId%3A117+AND+billStatus%3A%5C%22Introduced%5C%22%22%5D%7D&amp;r=1&amp;s=1\">as S.3840<\/a>, calls for increasing the threshold to $5,000.<\/p>\n<p>Multiple Republican-sponsored bills, meanwhile, call for a return to the $20,000 threshold: Rep. Carol Miller\u2019s (W.Va.) Saving Gig Economy Taxpayers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/3425\/text\">Act (HR.3425)<\/a>, Sen. Bill Hagerty\u2019s (Tenn.) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/senate-bill\/3546\/text\">SNOOP Act of 2022<\/a> (S.3546) and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/senate-bill\/948\/text?r=5&amp;s=1\">a third bill (S.948) proposed<\/a> by Sen. Rick Scott (Fla.)<\/p>\n<p>A spokeswoman for Miller said that she intends to push her bill\u2019s passage in the post-election season, noting that the congresswoman \u201csupports restoring the threshold to its original levels.\u201d<\/p>\n<p>\u201cHowever, she is certainly open to negotiating if Democrats have a reasonable proposal to save taxpayers from their own liberal, burdensome taxes and red tape included in the American Rescue Plan,\u201d the spokeswoman said, describing that plan as an \u201cabsurd budget gimmick.\u201d<\/p>\n<p>Pappas, who proposed the $5,000 threshold, described the issue as \u201cabsolutely important to settle before the end of the year.\u201d<\/p>\n<p>\u201cSelling online has helped my constituents supplement their income and find a second life for used goods,\u201d he said in a statement.<\/p>\n<p>The House Ways and Means Committee \u2014\u00a0the committee of jurisdiction for this section of the American Rescue Plan \u2014 did not respond to The Hill\u2019s request for comment.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>A spokesperson for the Coalition for 1099-K Fairness said the group \u201csupports any legislation to raise the threshold.\u201d<\/p>\n<p>\u201cEven a $5K threshold would provide significant relief for families and microbusiness. The hope is that the threshold will be raised as part of a tax extender package in the lame duck session,\u201d the spokesperson added.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_%E2%80%98big_deterrent\"><\/span>A \u2018big deterrent\u2019<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At Kidizen, if sellers are nearing the current $600 threshold, the company sends them a cautionary notification and requests their W-9 information, Graff said.<\/p>\n<p>\u201cFor most of our sellers, that\u2019s their <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security number,\u201d she said, noting this in and of itself is a \u201cbig deterrent.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cWe\u2019ve had a number of shops actually just put their shop on hold for the rest of the year,\u201d Graff said.<\/p>\n<p>Williams, who is debating whether to pause her accounts, described \u201ca scary situation\u201d in which she has no idea how her sales are going to affect her tax filing.\u00a0<\/p>\n<p>But backing away from these platforms and returning to big box stores would also mean forgoing her ability to purchase and re-sell quality fashion brands, according to Williams.<\/p>\n<p>\u201cUnfortunately, a lot of these brands that do focus on organic material and sustainability and recycling and all of that \u2014 they\u2019re more expensive,\u201d she said.<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>While the most sustainable fashion practice is to buy fewer, better-quality items, the second most sustainable behavior is participating in online resale, according to Fallon, from Kidizen.<\/p>\n<p>Stressing that Kidizen\u2019s brands retain their value and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly reach \u201cwell beyond one child,\u201d Graff added that their company\u2019s \u201cgoal is to keep items in circulation as long as possible.\u201d<\/p>\n<p>\u201cIf we dissuade consumers from reselling,\u201d Graff continued, \u201cthey might revert back to fast fashion.\u201d<\/p>\n<p>Williams said she hopes that Congress will decide to return to the $20,000 threshold.<\/p>\n<p>\u201cI\u2019d know that I would never have to be worried or question that,\u201d she said. \u201cThere\u2019s no way I would ever reach that \u2014\u00a0not even close, doing what I\u2019m doing.\u201d<\/p>\n<p>\u201cWe\u2019re not trying to weasel our way out of paying taxes,\u201d Williams added. \u201cWe\u2019re trying to dress our kids.\u201d\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/policy\/equilibrium-sustainability\/3720228-online-secondhand-sellers-balk-at-new-tax-reporting-threshold\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Online secondhand sellers balk at new tax reporting threshold Melissa Williams has been buying and reselling her children\u2019s clothing on a variety of online platforms for more than a decade. But a new tax barrier may force her to pause her accounts and abandon what she calls a sustainable economic solution for her family.\u00a0 \u201cIf&#8230;<\/p>\n","protected":false},"author":1,"featured_media":507473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/11\/1099kform-istock.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134405,30889,134343,135174,135175,77891,135176,115,76751,46483,4965],"class_list":["post-507472","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-american-rescue-plan","tag-biden","tag-campaign","tag-carol-miller","tag-chris-pappas","tag-e-commerce","tag-fast-fashion","tag-news","tag-sustainability","tag-taxes","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=507472"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/507472\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/507473"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=507472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=507472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=507472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}