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Major Tax Changes in 2022 for U.S. ARTISTS MUST READ
3 years ago
Please take a moment to read this. Especially if you're an artist drawing for me
This is extremely important as it affects your income as a US based freelance artist or content creator directly.
Originally, the threshold for form-1099K was $20,000. If you earned less than that, you did not have to file it with the IRS. That threshold is now being lowered to a staggering $600! This means essentially that even the smallest of content creators will have to file this form for 2022.
Proof: https://newsroom.paypal-corp.com/20.....tions-Answered
What this essentially means, is that if you're a United States based artist earning more than $600 in a year from third-party transactions(I.E Paypal), then you're gonna be paying more in annual income tax. If you're having trouble making ends meet as it is, it's time to raise your prices if this is your sole source of income.
This includes all manner of third party transactions, including if you sell a couch at a profit, but not if you sell it at a loss. (Sell a couch worth $300 for $400? You gotta include it in your 1099K. Sell it for $200? You do not have to include it.)
This is gonna pose a lot of problems for a lot of artists nationwide. I'm so sorry the IRS is doing this to you, but if you think 2021 was an expensive tax year? '22 is gonna be worse. :(
Originally, the threshold for form-1099K was $20,000. If you earned less than that, you did not have to file it with the IRS. That threshold is now being lowered to a staggering $600! This means essentially that even the smallest of content creators will have to file this form for 2022.
Proof: https://newsroom.paypal-corp.com/20.....tions-Answered
What this essentially means, is that if you're a United States based artist earning more than $600 in a year from third-party transactions(I.E Paypal), then you're gonna be paying more in annual income tax. If you're having trouble making ends meet as it is, it's time to raise your prices if this is your sole source of income.
This includes all manner of third party transactions, including if you sell a couch at a profit, but not if you sell it at a loss. (Sell a couch worth $300 for $400? You gotta include it in your 1099K. Sell it for $200? You do not have to include it.)
This is gonna pose a lot of problems for a lot of artists nationwide. I'm so sorry the IRS is doing this to you, but if you think 2021 was an expensive tax year? '22 is gonna be worse. :(
For example, and keeping with the theme of taxation, I switched my vote from Clinton to Trump in 2016 specifically because Clinton said she wanted to raise taxes, and voted for Trump again in 2020 because he actually did lower taxes (among other achievements unrelated to taxation) whereas Biden threatened to raise them back up--like he is now. Think what you may of the candidates' personalities, it's the policies they support that will ultimately affect you; therefore, what should ultimately be voting on.
Furthermore, this assumes that there is no benefit to taxation which is inherently absurd. Government spending is a huge driver of the economy. Directly in paying government employees and providing goods and services the free market cannot. Not to mention the indirect ways government spending helps the economy.
Amazon would not exist as it does it it’s current form with out the highway system to transport it’s package, the heavily government subsided internet. For years they relied on the post office as well.
Clearly taxes can be too high, but broadly saying low taxes are good is a childish and silly notion.
I have no interest in talking about this privately with you.