American family plan: better read up

[5GallonBucket]

Do your homework.

 

IRS over reach

[Derf Nosneb]

2 hours ago, 5GallonBucket said:

Do your homework.

 

IRS over reach

But wait, tell us more...

[Reagan]

Such a benign title by Joebamanista!  

[5GallonBucket]

4 hours ago, Derf Nosneb said:

But wait, tell us more...

I’m doing some more research.

and it’s a long and boring read.

[5GallonBucket]

Well one of the issues is the IRS will mandate banks to report any withdrawals or deposits on accounts with $600 or more

[thetragichippy]

12 hours ago, 5GallonBucket said:

Well one of the issues is the IRS will mandate banks to report any withdrawals or deposits on accounts with $600 or more

I work at a bank, I'm not sure how that would work.  Based on the Patriot act, we report transactions over 10K, but not directly to the IRS like some people think.....and transactions over 10K are VERY common....I've never understood why one person would be worried about the government picking on them with millions of transactions reported daily from every bank in the US. 

Now with a $600 trigger, that would be 95% or more of every transaction we do......I'm not sure what they would do with that information, but they don't have the staff to manage that....

[Derf Nosneb]

11 hours ago, 5GallonBucket said:

Well one of the issues is the IRS will mandate banks to report any withdrawals or deposits on accounts with $600 or more

You have always been required to declare income in excess of $600 to the IRS. As a 20+ year sports official could not tell you how many officials keep tabs on how much they work in one school district so they would not hit that magic number.

President Biden announced the American Families Plan today, which is designed to “grow the middle class and expand benefits of economic growth to all Americans.

As always the devil is in the details and when you see either party state anything about the middle class you can bet grandmas pearls it is going to HURT the middle class.

The middle class, income between $40k and $120K, the average U.S. household income is $87,864, and the median is $61,937, which would make both the average and median income group "middle class".

As someone who has spent his entire adult working life at or above the median income, this is a total attack on the middle class. Those of us in the middle class usually have both heads of household working and sometimes one or both may have a second job, many times as an independent contractor.  In my first 10 years of officiating I could make from $5K to $20K depending on the number of sports and how much you wanted to work. Much of this money was in the form of cash or personal check from youth sports or a scheduler for that sport.

About 5 or 6 years ago the IRS started clamping down on these entities forcing them to file a 1099 on those who made under that $600 reportable income. Also those at the lower end of the MC, $40K are less likely to own a home or have enough deductions to long form to save taxes or use a short form with the standard deduction. It's not really the lost income tax that Uncle Sam hates with these 1099ers it is the SS income tax they are concerned with. Every one that makes extra money in this form puts 95 to 100% back into the economy, weather it is saving for a large purchase or expenditure or using it for everyday expenses.

So thanks for taking me down the rabbit hole, I gave up the officiating gig a couple of years ago and do not miss tax time...

[5GallonBucket]

56 minutes ago, thetragichippy said:

I work at a bank, I'm not sure how that would work.  Based on the Patriot act, we report transactions over 10K, but not directly to the IRS like some people think.....and transactions over 10K are VERY common....I've never understood why one person would be worried about the government picking on them with millions of transactions reported daily from every bank in the US. 

Now with a $600 trigger, that would be 95% or more of every transaction we do......I'm not sure what they would do with that information, but they don't have the staff to manage that....

According IRS website in this American family plan it talks about the lack of staff….and so there for they brought up some program that would do all the analysis….I couldn’t read no more cause it’s so dang boring and was 24 pages.

Also spending 80 billion on irs 

 

always trying to take

i get taxed for a old rusty sheetmetal chicken house…..what the hell.

 

[thetragichippy]

2 minutes ago, 5GallonBucket said:

According IRS website in this American family plan it talks about the lack of staff….and so there for they brought up some program that would do all the analysis….I couldn’t read no more cause it’s so dang boring and was 24 pages.

Also spending 80 billion on irs 

 

always trying to take

i get taxed for a old rusty sheetmetal chicken house…..what the hell.

 

I get ya...

[Derf Nosneb]

1 hour ago, 5GallonBucket said:

According IRS website in this American family plan it talks about the lack of staff….and so there for they brought up some program that would do all the analysis….I couldn’t read no more cause it’s so dang boring and was 24 pages.

Also spending 80 billion on irs 

 

always trying to take

i get taxed for a old rusty sheetmetal chicken house…..what the hell.

 

You could actually make it a tax deduction if you made capital improvements to your free range, organic poultry "business". Heck just show a loss for a couple years and like magic your tax burden is reduced. You would be amazed how treating a hobby as a business and following a few minor tax codes can make you a hundredaire.

[SmashMouth]

20 hours ago, Derf Nosneb said:

About 5 or 6 years ago the IRS started clamping down on these entities forcing them to file a 1099 on those who made under that $600 reportable income.

Was that directed at just sports officiating? The tax law only mandates reporting income of $600 or more. I wonder if these organizations just decided to send a 1099 to everyone to make it easier (see regs below). 

From the IRS website:

“If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.

1. You made the payment to someone who is not your employee;
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
3. You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
4. You made payments to the payee of at least $600 during the year.

Note: Beginning with Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported in box 7 on Form 1099-MISC. The separate instructions for filers/issuers for Form 1099-NEC are available in the 2020 Instructions for Forms 1099-MISC and 1099-NEC.”

[Derf Nosneb]

4 hours ago, SmashMouth said:

Was that directed at just sports officiating? The tax law only mandates reporting income of $600 or more. I wonder if these organizations just decided to send a 1099 to everyone to make it easier (see regs below). 

From the IRS website:

“If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.

1. You made the payment to someone who is not your employee;
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
3. You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
4. You made payments to the payee of at least $600 during the year.

Note: Beginning with Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported in box 7 on Form 1099-MISC. The separate instructions for filers/issuers for Form 1099-NEC are available in the 2020 Instructions for Forms 1099-MISC and 1099-NEC.”

I am not really sure if it was directed just at officiating. I found from past experience not to mess with the IRS back in the 80's. 

The problem I saw with some of the officials was the lack of knowledge in deductions and how using those deductions would actually increase the profit made. It could also have been that the scheduler was doing some crazy under the table business as he was pulling a pension for MLB. It may have been his accountant that recommend he do that to cover his arse.

[SmashMouth]

37 minutes ago, Derf Nosneb said:

I am not really sure if it was directed just at officiating. I found from past experience not to mess with the IRS back in the 80's. 

The problem I saw with some of the officials was the lack of knowledge in deductions and how using those deductions would actually increase the profit made. It could also have been that the scheduler was doing some crazy under the table business as he was pulling a pension for MLB. It may have been his accountant that recommend he do that to cover his arse.

Who knows. Just an FYI, if it’s less than $600, you don’t have to include the 1099 with your tax return, nor will you be required to pay income tax on those earnings. 

[Derf Nosneb]

2 hours ago, SmashMouth said:

Who knows. Just an FYI, if it’s less than $600, you don’t have to include the 1099 with your tax return, nor will you be required to pay income tax on those earnings. 

Thanks yes I knew that, I would show all my income from High School sports and all my youths sports was nickel/dime work so would not claim any of it...

[5GallonBucket]

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[BS Wildcats]

I’m sure members of Congress will be exempt from the meddling, just as they are from getting the vaccine.  Guess they don’t want to be able to track how they come in with nothing, and become multi-millionaires on roughly a salary of $200K. 

[baddog]

On 9/18/2021 at 9:07 AM, BS Wildcats said:

I’m sure members of Congress will be exempt from the meddling, just as they are from getting the vaccine.  Guess they don’t want to be able to track how they come in with nothing, and become multi-millionaires on roughly a salary of $200K. 

aoc can afford a $30,000 gala. She used to not have enough to afford an apartment in DC, or so she said. Poor little thang.

[BS Wildcats]

1 hour ago, baddog said:

aoc can afford a $30,000 gala. She used to not have enough to afford an apartment in DC, or so she said. Poor little thang.

Funny how they go in dirt poor and in no time are millionaires.  

[5GallonBucket]

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[CardinalBacker]

Despite repeated claims to "not raise taxes on American families earning less than $600/year,"  They're trying to find unreported income from people who make ANY amount of money.  Everybody's gonna have have to pony up their "fair share" in our new Socialist Utopia.

[Derf Nosneb]

"They're trying to find unreported income from people who make ANY amount of money"

After 22 days we have a winner, spot on CB.

[5GallonBucket]

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[baddog]

Trump looking better and better all the time. I’d even let him ‘tweet’ me mean. All the anti-Trumpers are sucking hind tit now. Lmfao.