Every year United States citizens who have any type of income must send the Tax Return to the IRS. Through this document they will be able to determine the taxes they have paid, the taxes they have to pay, the monthly and annual earnings and everything related to salary and income in general.
Until now many of the beneficiaries who earned extra money with certain activities did not have to worry about these dollars that entered from time to time in the bank account. But from now on the occasional sale of items online will have to be declared.
This is where the new $600 tax rule comes into play. Through this new rule, the IRS will impose a new tax payment for all those Americans who manage to earn enough money through online sales. While it is true that the rules are somewhat unspecific in many aspects, it is true that we must be attentive to be able to declare our sales well and thus avoid attorney problems.
WHAT WILL I HAVE TO DECLARE TO THE IRS WITH THE $600 TAX RULE?
This new tax rule does not affect All United States citizens, but only those who sell through different online platforms. And it is not 100% specified whether it refers to sales of second-hand items or sales of handcrafted items.
However, what is certain is that if we have our online store and sell objects on eBay or Etsy that we make ourselves, we will have to include this sale in the Tax Return if we exceed $600 in a year. For some, this figure may be very large, but for others it is easy to exceed these dollars in sales.
And we are not talking about profits, but total income. Even if your earnings of that $600 are not very high because the purchase of material is a huge expense you have to send the IRS the tax return anyway. So if you earn $600 or more a year in this type of work, you will have to report it.
WHEN WILL THE NEW TAX RULE BECOME MANDATORY?
We still have time to acclimate to this new IRS tax rule. For the moment, until 2025 we will not have to worry about this situation, so if we currently have an online store with these characteristics we will be able to continue selling without the worry of this $600 rule.
However, in this year the other rule related to taxes and online sales is still in force. In this case, if we sell more than $20,000 or have more than 200 transactions we will have to include those incomes in the Tax Return.
In short, if our we sell more than $600 per year we will have to pay more taxes, although that also depends on the rest of the income we have every month. The important thing is to declare this type of sales to the IRS so that later the Administration does not claim the corresponding money from us.