The IRS reminds Americans earning over $600 on PayPal, Venmo, or Cash App transactions to report their earnings

[scruffy]

I can imagine heavily armed gangs of IRS thugs waylaying citizens on the street and holding them for ransom

I like the IRS, they're very nice people

 

[rightwinger]

If I want to give my adult child $600, they should not have to pay tax on it. I already did that.

Don't act as if you care about who makes up for what. Democrats are for loads of "free" stuff that I am forced to pay for and Democrats are the largest recipients of the freebees.

You don’t have to report gifts under $10,000

However if you are running a business and think you can avoid taxes by using shadow currencies, it is now more difficult

 

[AMart]

Yes our dear elected reps hid that in the "American Rescue Plan", anyone surprised? Does anyone remember any member of congress running on this?

 

[Harpy Eagle]

This is outrageous….taxes on this money have already been paid…if I want to send my daughter $600, that’s my business.

That is not an earning, and thus does not need to be reported.

 

[CowboyTed]

This is outrageous….taxes on this money have already been paid…if I want to send my daughter $600, that’s my business.

When you pay your daughter is that Earnings?

No it isn't you fucking moron... Why do you think Paypal have the bit that says is this friends and family...

Stop being a fucking moron..

 

[CowboyTed]

I buy stuff for my mother who is in a senior facility - wide range of things like pajamas, toiletries, new sneakers, protein drinks, OTC meds, clothes, restock the fridge with basics, etc., etc. - keep a running total, and every few months we do a third-party transfer to reimburse me. Probably adds up to a couple thousand of dollars a year. How does the IRS know these are reimbursements and not, say, payments for my helping care for her (which of course I don’t charge for)?

I haven’t kept receipts for all this stuff. What a headache that would be!

There is a message on the pay portals that state if the payment is for 'business' or 'family or friends'

This is common worldwide... cashless society is coming upon us and paying each other with Revolut being huge in Europe... You just don't get paid cash by most of your friends...

 

[KissMy]

This is the same IRS that hasn't been able to process my income tax returns since 2017's return.
This is the same IRS that sent several threatening letters demanding payment for not filing a return in 2018, then threatening me again when I proved that they already have it.
This is the same IRS that puts me on hold for hours when I call them, then the representative I speak to can barely speak English.
This is the same IRS that owes me several thousands of dollars that I likely will never see.
The arrogance and incompetence of this IRS is simply astounding.

Republicans hobbled the IRS so they couldn't function or audit the tax avoidance schemes of the wealthy. They were only able to screw up working class forcing us to wait, wait & wait on hold.

Now they have thousands of new agents to answer the phones, go after the schemes of elites & get more done.

 

[pknopp]

You don’t have to report gifts under $10,000

However if you are running a business and think you can avoid taxes by using shadow currencies, it is now more difficult

You can still get an off shore tax haven.

 

[pknopp]

That is not an earning, and thus does not need to be reported.

A 1099 does not specify what it was for.

 

[LeftofLeft]

If your daughter earns six hundred or more through these payment options then she must report the income is what they be saying.

Receiving a Gift is not Earning.

 

[rightwinger]

Yes our dear elected reps hid that in the "American Rescue Plan", anyone surprised? Does anyone remember any member of congress running on this?

You mean collecting taxes that are due?

 

[struth]

You should not be able to hide income
The rest of us have to make up for it

haha how is his hypo hiding income?

 

[struth]

You mean collecting taxes that are due?

taxes are due on income..total income for the year. That doesn’t change if i spend it sending it to my kid in college via an app. If i give kid cash it’s not taxed, but if i need to use rhe app it is…that makes zero sense. It’s not another way to tax the poor by the xiden irs

 

[rightwinger]

taxes are due on income..total income for the year. That doesn’t change if i spend it sending it to my kid in college via an app. If i give kid cash it’s not taxed, but if i need to use rhe app it is…that makes zero sense. It’s not another way to tax the poor by the xiden irs

money you give your kid is not taxed
His allowance is safe

 

[Moonglow]

Receiving a Gift is not Earning.

How long did it take yous to finger that out?

 

[struth]

money you give your kid is not taxed
His allowance is safe

or course it’s been taxed
and. now if i send it via paypal my kid has to pay tax on it again.

 

[pknopp]

or course it’s been taxed
and. now if i send it via paypal my kid has to pay tax on it again.

No they don't.

 

[Lisa558]

No they don't.

But what happens? Does the IRS send a letter saying that tax is due, and the kid has to write back that it was a gift and not earnings? And how do you prove it? What a headache for $600!

 

[rightwinger]

or course it’s been taxed
and. now if i send it via paypal my kid has to pay tax on it again.

Actually, he doesn’t

 

[pknopp]

But what happens? Does the IRS send a letter saying that tax is due, and the kid has to write back that it was a gift and not earnings? And how do you prove it? What a headache for $600!

No, it makes your returns more complicated. An unjustified action.