I see the exemption limit before a payment processor company sends a 1099-K has been lowered from $20,000 to $600.00. What does this mean to our tribute receiving dommes? I can't see how it would affect gifts of goods, not cash.
Will it change your taxes?
I am not up to date as I am a spender, not a recipient.
Thoughts?
Anything above $600 sent as goods/services will be on the IRS' radar for taxing. I recently read that personal gifts over 10K will be considered, as well. Basically what this means for Dommes is ALWAYS receive Paypal as a gift to family/friends (not sure that can be specified in CashApp or other pay processors), and count on filing/paying taxes on money sent in pay apps. That $600 ceiling, and even 10K personal ceiling, will come fast and catch you up, if you disregard paying taxes
In 2021 (US), you can give a gift of up to $15k to someone in a year and not have to report to the IRS. 2022, this will increase to $16k. If you give more than $15k in cash or assets (ex. stocks, land, a new car) in a year to any one person, you need to file a gift tax return. I do file every year for the gifts that I receive above the $15k.
i thought forever now since the early 90s that i know of... it was anything you earn over $500.. and always been $10 grand is limit for gifts..taxable after 10 grand
Questions:
1) Are payments and gifts to a domme considered "income" or "gifts" under the tax laws?
2) If "gifts", the SENDER files a gift return and can exclude $15,000 a year and pay a gift tax on the rest. The recipient has no tax liability.
Thoughts?
I keep a detailed spreadsheet of all earnings/gifts for each year. I record it as income so my social security check will be nice when the time comes.
i thought forever now since the early 90s that i know of... it was anything you earn over $500.. and always been $10 grand is limit for gifts..taxable after 10 grand
As with most things taxes, that number does change at the will of Uncle Sam. 500 has been dead for a while
