People earning extra money may have another tax form to complete

FARGO, ND (Valley News Live) — Small business owners or people working on the sidelines still have a few hoops to jump through from this year.

“I think that’s a huge burden to put on an average person who just wants to clean up their house and pass things on to someone else for them to enjoy and put all this burden on them to report,” said Fargo resident Kim Danielson. .

If sellers receive more than $600 per year, they must now disclose their transactions with services like Venmo, PayPal and Airbnb through a tax form called 1099-K.

It could even affect local garage sales using Venmo as a payment option.

“I’m a single mom, so when I have a yard sale, it pays the extra for my son, to take him to concerts, to take him to Fargo Force, so I keep my money in the community “said Andrea Canning, a resident of Fargo.

In the case of resale of items, individuals may provide receipts to prove that they sold the item at a loss.

“I like to shred, get rid of it as much as possible so to tell myself that I need a receipt for something that was maybe given to me in 1985 or that I bought 10 years ago years, I’m so sorry but I don’t have that receipt,” Canning said.

The tax form may also include sales on Ebay, Amazon, and Etsy.

“Having to pay taxes, a lot of us will probably say no, we’ll throw it away, we’ll donate it, we’ll recycle it to shred it,” Canning said.

“It really crushes that entrepreneurial spirit and just the fun and camaraderie and community that it brings,” Danielson said.

The new law is effective for the 2022 tax year.

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