# About that new IRS $600 + rule on cash app cards



## SassyDriver (9 mo ago)

was pondering while driving. I do that often, don't you? 
With this new rule that financial card providers now have to report income over $600 aggregate for the account holder; what happens when money is shifted off my Ca$h app card to say my Bank account? According to the new IRS rule Ca$h app is now required to report as income anything over $600 paid to me on their platform. But, so is the bank, right? Now it looks like I have suddenly earned over $600 on each platform, right, for a total of say over $1200, right? Wrong? WTH? I currently use multiple cards, usually tied to different GIGs, but some are linked to my bank account so I can shift funds as needed. I don't need Uncle Sam taxing me twice! What do you guys think?


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## Daisey77 (Jan 13, 2016)

How would you be taxed twice? Taxes are not withheld before it goes into your cash app. You claim it as income just like you would your Rideshare 1099. Taxes are settled up at tax time. Where are you thinking you might get taxed again?


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## Uber's Guber (Oct 22, 2017)

SassyDriver said:


> was pondering while driving. I do that often, don't you?
> With this new rule that financial card providers now have to report income over $600 aggregate for the account holder; what happens when money is shifted off my Ca$h app card to say my Bank account? According to the new IRS rule Ca$h app is now required to report as income anything over $600 paid to me on their platform. But, so is the bank, right? Now it looks like I have suddenly earned over $600 on each platform, right, for a total of say over $1200, right? Wrong? WTH? I currently use multiple cards, usually tied to different GIGs, but some are linked to my bank account so I can shift funds as needed. I don't need Uncle Sam taxing me twice! What do you guys think?


As predicted, this new "$600 Rule" will be confusing as well as burdensome. Allow me to discuss:
I enjoy using the new “$600 Rule” as an example how Democrats bullshit on the campaign trail. One of their all-time favorite slogans is _“tax the rich!”_
The new $600 Rule was signed into law by Joe Burden, who claims he wants to make “The Rich” pay their “fair share.” So the Democrats in charge crafted this trigger mechanism (which used to be $20,000) into the “Covid Relief” law that was rammed through by Democrats last year, even though this new tax rule had nothing to do with Covid. 🤦‍♀️🤷‍♂️
As a result, all those countless everyday Americans who sell old crap on a site like eBay can now expect to get 1099-K forms listing potentially taxable income. It’s a fked up rule because businesses like Etsy & eBay are now overly burdened by red tape with the record-keeping & disbursement management of millions & millions of forms, and the recipients of those forms will be forced to acknowledge if revenue was even earned.
Example: you purchased a bicycle that cost you $900 dollars. You get tired of the bike so you turn around and sell it on eBay for $750. Now you must list the money as "earned income," but you in fact paid more for the bike than you got back, so now you risk the chance of an audit years down the road from one of the many 1000’s of the new “revenuers” that Joe Burden is adding to the IRS. _Didn’t save your receipt from your purchase of that bike you bought way back when?_... oh well, bend over and take it dry, and don't forget to add penalties & interest to that bill.
“Tax the rich” sounds intriguing to the low-information voter who’s hearing the same Democrat 30-second campaign soundbite again & again. By now you should know it’s all bullshit if you didn’t already. Fact is, you can tax “the rich” in this country 100% of their income, and it wouldn’t begin to pay for all the federal spending. Truth is, it’s the “small fry” (most who can’t afford tax accountants to represent them) who make up the bulk of this country, and that’s why the tax & spend Democrats love coming after you.
So just remember this: anyone who voted for this petty, punitive, retaliatory, burdensome piece of legislation took no pity on _“the poor”_ they pretend to give a shit about.
For the record: *every* Democrat (except for one, Jared Golden of Maine) voted for this garbage.
Furthermore, *zero *Republicans went along with it.
_"Six-hundred dolla you say?...you is rich! Now you git back ta werk!"_
Enjoy! 
PS: #fjb


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## thepukeguy (10 mo ago)

Uber's Guber said:


> As predicted, this new "$600 Rule" will be confusing as well as burdensome. Allow me to discuss:
> I enjoy using the new “$600 Rule” as an example how Democrats bullshit on the campaign trail. One of their all-time favorite slogans is _“tax the rich!”_
> The new $600 Rule was signed into law by Joe Burden, who claims he wants to make “The Rich” pay their “fair share.” So the Democrats in charge crafted this trigger mechanism (which used to be $20,000) into the “Covid Relief” law that was rammed through by Democrats last year, even though this new tax rule had nothing to do with Covid. 🤦‍♀️🤷‍♂️
> As a result, all those countless everyday Americans who sell old crap on a site like eBay can now expect to get 1099-K forms listing potentially taxable income. It’s a fked up rule because businesses like Etsy & eBay are now overly burdened by red tape with the record-keeping & disbursement management of millions & millions of forms, and the recipients of those forms will be forced to acknowledge if revenue was even earned.
> ...


I don’t have anything intelligent to counter your opinion so I’m just gonna say it you are a whateverist and a somethingphobe 😶‍🌫


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## ANThonyBoreDaneCook (Oct 7, 2019)

Uber's Guber said:


> As predicted, this new "$600 Rule" will be confusing as well as burdensome. Allow me to discuss:
> I enjoy using the new “$600 Rule” as an example how Democrats bullshit on the campaign trail. One of their all-time favorite slogans is _“tax the rich!”_
> The new $600 Rule was signed into law by Joe Burden, who claims he wants to make “The Rich” pay their “fair share.” So the Democrats in charge crafted this trigger mechanism (which used to be $20,000) into the “Covid Relief” law that was rammed through by Democrats last year, even though this new tax rule had nothing to do with Covid. 🤦‍♀️🤷‍♂️
> As a result, all those countless everyday Americans who sell old crap on a site like eBay can now expect to get 1099-K forms listing potentially taxable income. It’s a fked up rule because businesses like Etsy & eBay are now overly burdened by red tape with the record-keeping & disbursement management of millions & millions of forms, and the recipients of those forms will be forced to acknowledge if revenue was even earned.
> ...


Exactly.

I made an impulse buy on a Eurorack modular purchase 2 months ago. I determined that it was repetitive in my setup so I sold it on Reverb for a -$50 loss after cashback, etc. I'm curious as to how this will shake out on my taxes. It isn't a ****ing business, I just wanted to cut my losses and move on.


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## ObeyTheNumbers (8 mo ago)

If it's a major gig job they will 1099 report what you made in charges to customer, what the gig company took as their fee and what they paid you. That's your income.

If that income gets transferred around there is a record of that.

If new income comes on the cash app without a gig company proving a 1099 to cover it, obviously it's a new revenue source and considered income.

Cash app is required to report everything over $600, it's up to you to cover what is considered income.

Obviously what they are looking for is money laundering so if your figures are low and your paying your taxes, shouldn't be much of a problem really.

What you want to do is record as many miles as possible, preferably on a gig app and personal records, for the .62 cents a mile (as of July 1) tax credit. That could go a long way to reduce taxes on other income sources.


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## ObeyTheNumbers (8 mo ago)

ANThonyBoreDaneCook said:


> Exactly.
> 
> I made an impulse buy on a Eurorack modular purchase 2 months ago. I determined that it was repetitive in my setup so I sold it on Reverb for a -$50 loss after cashback, etc. I'm curious as to how this will shake out on my taxes. It isn't a ****ing business, I just wanted to cut my losses and move on.


If you purchased through a legitimate company, they paid the tax on the original purchase. Keep your receipt.

If you later sold it for a loss, that money isn't considered income. Provided you report that and have the receipt.

The government doesn't tax twice, it only taxes once on income and on purchases.

However if you purchased something for $1000 dollars, the tax was paid and you later sold it for $5000, then if course $4000 is considered income and you need to pay the tax on that.


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## SassyDriver (9 mo ago)

B


Daisey77 said:


> How would you be taxed twice? Taxes are not withheld before it goes into your cash app. You claim it as income just like you would your Rideshare 1099. Taxes are settled up at tax time. Where are you thinking you might get taxed again?


Because the new rule makes financial companies report a 1099K when earnings go over an aggregate of $600. So if I transfer funds from one financial card to another that same money is now showing as income on two different accounts. So each account would be required to report the aggregate income on the 1099K. But the reality is that income amount is just one amount.


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## ObeyTheNumbers (8 mo ago)

SassyDriver said:


> B
> 
> Because the new rule makes financial companies report a 1099K when earnings go over an aggregate of $600. So if I transfer funds from one financial card to another that same money is now showing as income on two different accounts. So each account would be required to report the aggregate income on the 1099K. But the reality is that income amount is just one amount.


If you transfer brand new unreported income of $600 from one account to another the second account doesn't matter. It's only on the first account the money was paid into.

Again you only get taxed on income once. It may be reported multiple times if your transferring it around but it still the same income.

The 1099 is just reporting transactions, not income, that for you to declare.


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