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Things have changed for online earners!


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I just wanted to update everyone in case they didn't know. 

Starting in 2022, no matter where you make your money online, anything over $600 must be reported to the IRS. Paypal has dropped their 20k limit down to $600 as per that act Biden passed in 2020 for the relief funds. I guess this is their way of getting the money back. So needless to say, there is a good chance you will be getting taxed the 15.3% for online earnings. I think if you are married and earn under 20k, you won't owe much of anything and if you earn under 10k, you won't owe anything but if you are single without dependents, you will need to pay it. At least that is my understanding. 

Every transaction over $600 will be reported to the IRS as well and this goes for both online earnings and purchases as well as offline ones using credit cards and bank accounts. 

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I don't know what these people are doing anymore but I am trusting the government less and less and I didn't trust them all that much to begin with. I don't trust big corporations or banks either. I had no idea this would mean they could actually track and see transactions like this. I mean anytime someone gets paid, assuming they make over $600 a pay, the bank will need to file something with the IRS... That is a lot of paperwork! I think they are trying to get smaller banks shut down just like they got smaller businesses shut down in 2020. 

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Thanks for the update. Make sure to keep track of your books very closely and log all those expenses. The IRS is out for their piece of the pie. Get all those write offs in. 

Right now the banks file paperwork on a ton of transactions and I am sure a majority of that is automated now days. Just fill in some fields and boom the information is logged. 

My larger projects I have run we have always filed paperwork on the contractors we paid more then $1200 a year to the IRS. All contractors always had to fill out W9s. 

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The government needs their money... 😒

I think things need to change with taxation. When it was first introduced way back before WWI, it was only the rich who paid. Then they needed more because of the war, and then more because of WWII... They were meant to reverse it but they never did. 

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I heard something about this but did not look into it. Thank you for sharing it! I would not have known otherwise. I didn't get an email about it from Paypal so I must have deleted it or overlooked it. I believe my social is already linked to my account so maybe that is why I didn't get notified of these changes?

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