The IRS announced a new change for United States taxes. This change does not affect all Americans, but it does affect a part of them. Therefore we should always pay attention to this kind of things, as they could result negatively in our economy.
In case we have a regular salary, this new IRS tax rule will not affect us. But if we earn some extra money in addition to our usual salary we could have problems in the economic aspect, so we cannot forget this new rule.
Also, previously this rule was a little different and more open, which allowed citizens to earn more money without having to declare every extra dollar they earned. But starting next year this will mean a very important change.
Likewise, in the case of having a Social Security check this kind of rules could also affect, so we have to look very well all the conditions and all the established requirements. Knowing the details is the best way to be able to pay all our taxes and not get penalties or fines later.
HOW WILL THE NEW IRS ‘TAX RULE’ AFFECT IN 2024?
To understand this new ‘Tax rule’ we have to keep in mind that it only affects those citizens who sell products online. So if you are in the group of Americans who sell their own creations to earn extra money you should take a good look at the new rule.
This new IRS tax rule says that if you earn at least $600 a year in this type of sales you will have to pay taxes on that money. In case our income is less than $600 we don’t have to worry about it.
However, there is also something to keep in mind with all of this, and that is that we are not talking about $600 in earnings. We are talking about $600 in sales, not taking into account the money we have paid for the material and other overhead involved in making the creations.
Up until now, this was different, as we had a much larger revenue margin. But from now on we have to take into account that the moment we sell $600 in a year we will have to pay taxes on that income. But one of the most important aspects is that this will not have to be done in the Tax Return that we will send in 2024.
WHEN WILL THE ‘$600 TAX RULE’ START TO WORK?
Although we will actually have to make payments on the 2024 profits, this Tax Rule will not have to be applied until 2025. The Tax Return we send to the IRS in this year is where we must report the taxes on these benefits.
So the extra money we have earned in 2023 should not be included even if it is more than $600 in most Tax Returns, but we must also be very careful with this. If we do not know 100% what to include in the tax return and what not to include, it is time to contact a specialist.
The experts who work with this type of documents can help us to include everything that is obligatory and to pay the taxes that by law we must pay. Remember that any tax that we do not pay on time to the IRS can end up in a penalty.