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People who make an income using sites like Etsy and eBay will now need to pay taxes for making over $600

Beginning in 2022, anyone selling anything online will be required to claim it on their taxes as income.

People who sell $600 worth of goods or more on sites like eBay or Etsy will now receive a 1099-K form with the transactions for the IRS.

The rule of thumb until this point was anyone who sold $20,000 worth of goods or had over 200 transactions.

These rules are part of the American Rescue Plan Act of 2021 and is for services like PayPal or Venmo.

People are upset and threatening to no longer sell online, but tax attorney Barbara Weltman says it doesn’t change anything so she’s unsure of why people are anxious over it.

Some experts believe the change may be helpful for those who need to keep better track of their finances relating to business transactions.

The responsibility of these forms falls on the third-party payment companies like CashApp and Venmo.

Categories: BusinessNews