1099 tax form questions

YourDirtisMyfood · January 5

pjl44 said:

I prefer the Metallica forum for tax advice

Sad but true.

Loujoe · January 6

This thread is bumming me out

Loujoe · January 6

YourDirtisMyfood said:

pjl44 said:

I prefer the Metallica forum for tax advice

Sad but true.

Lol

mookeywrench · January 6

Loujoe said:

This thread is bumming me out

Me too, it reminds me that in about 12 hours another tax season kicks off.

Jan 15th Q4 estimated pmts
Jan 31st payroll and business filings
Feb - March 15th non-stop business returns
March to April 15th non-stop individual returns, trust returns and Q1 payments.

Jan - April about 3,000 emails that start off with; 'I know your [SIC] busy but....."

BF25394 · January 6

SHZA said:

BF25394 said:

on2legs said:

You would be taxed on the amount that you profited. The $5000 just triggers the reporting to the irs. Technically people who were below the $5000 threshold but made a profit are supposed to self report any profit as income.

Yes, this is a very important point that many people don't understand about their tax obligations under the law. You are required to report to the IRS any income that you earn regardless of whether the payor issues you Form 1099 or whether the payor reports the payment to the IRS. In this instance, the income is what you net after the resale.

Actually "income" is the gross and what must be reported. The net is what drives how much you owe.

Yes, I meant "income" in the sense of taxable income, that you're taxed on the net, not the gross.

on2legs · January 10

FYI. As of now the 2025 threshold is $2,500 and it’s scheduled to be $600 next year.

aisleseats · February 14

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

BF25394 · February 14

aisleseats said:

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

aisleseats · February 14

BF25394 said:

aisleseats said:

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

Not really. Since it was all F2F, and there was no income. In fact, I took a loss since they add extra taxes/fees to tickets that had already been sold on F2F. So I’m not failing to report income.
For example, if I list my Nashville tickets that I got directly thru 10c or TM, I get back exactly what I paid. But if I buy some F2F Nashville tickets, then relist them, I end up losing over $8 per pair. So, there’s no income either way.

KJ228171 · February 14

aisleseats said:

BF25394 said:

aisleseats said:

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

Not really. Since it was all F2F, and there was no income. In fact, I took a loss since they add extra taxes/fees to tickets that had already been sold on F2F. So I’m not failing to report income.
For example, if I list my Nashville tickets that I got directly thru 10c or TM, I get back exactly what I paid. But if I buy some F2F Nashville tickets, then relist them, I end up losing over $8 per pair. So, there’s no income either way.

Even in a wash sale there is income. What you describe has no profit (actually a loss in the second example) but both still have income (the sale price).

JOEJOEJOE · February 14

If the IRS sees that you received a 1099K and didn't report the income, they will send you a notice asking for the tax on the gross.

What you need to do is report the 1099 income amount as well as the "cost of goods sold".

This will keep the taxman off your back.

It doesn't matter if you have a loss on the sales, the IRS will still try to match up the gross income you received on the sales.

aisleseats · February 14

I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes.

JOEJOEJOE · February 14

aisleseats said:

I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes.

It often takes the IRS a year or 2 to contact taxpayers regarded unreported income.

KJ228171 · February 14

aisleseats said:

I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes.

Yeah but even though what you are saying is logical it’s still technically against the law. The IRS doesn’t care about intentions just the law. Having said that filing an amendment should fix things if they contact you.

Loujoe · February 15

BF25394 said:

aisleseats said:

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

BF25394 · February 15

aisleseats said:

I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes.

I understood you to be saying that you had sold the ticket for a profit.

on2legs · February 15

It’s possible the IRS will send you letter regarding the unreported income and let you know you owe the tax and an interest penalty. They would give you an opportunity to respond back if you think the tax isn’t owed and it’s possible they will accept your response. Otherwise you will owe them the tax and interest penalty. As someone else stated, it would probably take a couple of years for them to catch the unreported income so the interest will have accrued during that time.

Get_Right · February 15

When you receive money, that is considered income by the IRS. Period. Whether that income can be offset by expenses, or a cost of acquisition, depends on how you file, and how good your accountant is.

CROJAM95 · February 15

So livenation sent me for almost $11k, I did lot of upgrading… got burnt on 2 prem sales by accident, thank goodness they sold … my account put on schedule C, costing me like doing a 2nd return… I have medical bills to offset but what a pain in the ass

i will be wary about this bullshit moving forward, TM the worst

Gern Blansten · February 15

aisleseats said:

BF25394 said:

aisleseats said:

Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔

Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

Not really. Since it was all F2F, and there was no income. In fact, I took a loss since they add extra taxes/fees to tickets that had already been sold on F2F. So I’m not failing to report income.
For example, if I list my Nashville tickets that I got directly thru 10c or TM, I get back exactly what I paid. But if I buy some F2F Nashville tickets, then relist them, I end up losing over $8 per pair. So, there’s no income either way.

it can take the IRS a year or two to match 1099s to returns so it wouldn't be unusual to be notified this fall for your 2023 return

1099 tax form questions

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