Miniature Painters and resellers, beware of new tax changes coming to eBay, Etsy, PayPal, Venmo, etc; you may owe thousands!
If you’ve been taking payments on any of the Peer-to-peer apps for things like painting services, selling armies, bits, or just whatever, be prepared for increased taxes this year in the United States. These new increases were supposed to go into effect in 2023 but will now apply starting in 2024.
However, the IRS has officially launched a new mandatory reporting to tax money received from apps like PayPal and Venmo, as well as platforms like eBay, Etsy, etc.
If you’ve been taking payments for things on any of the platforms, be ready to get a 1099 form for any money you received over the new yearly reporting limit of $600 for 2024 and pay tax on it.
Miniature Painters & Resellers Beware of Big Tax Changes From PayPal, etc.
So, what are the rules going to be? According to CNBC:
…individuals who make business transactions through those platforms. The tax-year 2023 threshold is just $600 for even a single transfer, down from more than 200 transactions worth an aggregate above $20,000.
Whether you’re a miniature painter or a collectibles reseller as a side hustle, if you took in over $600 total in payments this year, you’ll be getting a 1099 form and will need to pay taxes on that income.
Whatever payment app or platform you use will send copies of 1099s to users and the IRS here in the States by the end of January 2025 to be added to the income taxes they usually file.
Some commission painters or sellers in the space may have not even heard of, much less be ready for this new tax. eBay has a good breakdown of the tax changes. Plus, resources for sellers and hobbyists are laid out here on their site.
Miniature Sellers & Painters Tax For 2023: Updated
These were the changes that were supposed to go into effect but have been pushed back for another year:
Soon you may have to pay around 25-30% in taxes (based on your current tax rate) on this income. So start saving now if you may be affected. Perhaps also think about price changes, as you’ll probably have to build this tax into your prices somehow.
Last but not least, keep good records of everything, and if you haven’t been, now is probably a good time to go back and start looking at what you’ve actually charged! Come Tax Season in 2025, it will be vital to know precisely what you’ve charged for and what you’ll have to pay.
How will these tax changes affect you running a hobby side hustle like painting miniatures this year?
Let us know in the comments of our Facebook Hobby Group, or our Discord server. Make sure you enter the latest monthly giveaway for FREE today!
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About the Author: Travis Pasch
Travis Pasch
Job Title: Head Writer & Editor
Socials: @paschbass
About Travis Pasch: Travis has been a Warhammer 40k hobbyist since the 1990s, playing the game since Third Edition. Through extensive traveling, he’s seen a lot of the miniatures hobby from across the world, giving him a unique perspective on the latest gaming topics and trends.
Travis’s brother even owns a commission painting studio, where he’s picked up a lot of good advice and techniques for painting Warhammer and tabletop miniatures over the years, as well. Travis joined the Spikey Bits team in 2019 and has been the lead writer since 2020.
Currently, he’s working on converting all his 40k Adeptus Mechanicus models and becoming a true tech enjoyer, complete with both sad and happy robot noises!
