ϟTheoϟ Posted July 6, 2020 Share Posted July 6, 2020 Does anyone know if income taxes must be paid for sales/income generated from the Steam Community Market? I was reading some blogs from a few years back, and I think that Steam used to send documentation over to the IRS. I think that their policy used to be "For those who live in the US however (and exceeding the $20,000 USD threshold), income will be reported to the IRS and taxes will have to be paid as income tax, outside of the Steam Marketplace. You'll get a 1099-K." However, when I look through the Community Market FAQ now, all I see is this: "Previously we required that U.S. citizens and residents provide us with certain information, including name, address and social security number, prior to exceeding 200 separate sales transactions in a calendar year. We have concluded that this information is not required and we will no longer be asking you for this information as part of Community Market participation. We will also not be providing IRS Form 1099’s with respect to sales activity in the Community Market." So, does this mean that US citizens are no longer required to pay income taxes for sales from the SCM? If anyone knows anything about this or has any ideas that would be super helpful, thanks! Link to comment Share on other sites More sharing options...
Vrakos Anthrakir Posted July 6, 2020 Share Posted July 6, 2020 would also like to know, I've been keeping track of my SCM stuff for years in an excel spreadsheet to avoid going over the massachusetts 1099-k threshold Link to comment Share on other sites More sharing options...
HaloGAMER0329 Posted July 6, 2020 Share Posted July 6, 2020 2 hours ago, ϟTheoϟ said: Does anyone know if income taxes must be paid for sales/income generated from the Steam Community Market? I was reading some blogs from a few years back, and I think that Steam used to send documentation over to the IRS. I think that their policy used to be "For those who live in the US however (and exceeding the $20,000 USD threshold), income will be reported to the IRS and taxes will have to be paid as income tax, outside of the Steam Marketplace. You'll get a 1099-K." However, when I look through the Community Market FAQ now, all I see is this: "Previously we required that U.S. citizens and residents provide us with certain information, including name, address and social security number, prior to exceeding 200 separate sales transactions in a calendar year. We have concluded that this information is not required and we will no longer be asking you for this information as part of Community Market participation. We will also not be providing IRS Form 1099’s with respect to sales activity in the Community Market." So, does this mean that US citizens are no longer required to pay income taxes for sales from the SCM? If anyone knows anything about this or has any ideas that would be super helpful, thanks! Do you know how long the FAQ has been saying that? I would also like to know this Link to comment Share on other sites More sharing options...
ϟTheoϟ Posted July 6, 2020 Author Share Posted July 6, 2020 1 minute ago, HaloGAMER0329 said: Do you know how long the FAQ has been saying that? I would also like to know this I'm not sure how long the FAQ has been like that. I just looked at it today and noticed it Link to comment Share on other sites More sharing options...
OGSemper Posted July 6, 2020 Share Posted July 6, 2020 21 minutes ago, HaloGAMER0329 said: Do you know how long the FAQ has been saying that? I would also like to know this 18 minutes ago, ϟTheoϟ said: I'm not sure how long the FAQ has been like that. I just looked at it today and noticed it About 9 months now, I used to have the 200 limit up until around the end of november last year, now it no longer requires tax payer info/details, since they lifted the 200 sell limit, i made over 2000 transactions in 3 months, its how i was able to get alot of spelled items and resell them. Link to comment Share on other sites More sharing options...
MasterMinder Posted July 6, 2020 Share Posted July 6, 2020 4 hours ago, ϟTheoϟ said: So, does this mean that US citizens are no longer required to pay income taxes for sales from the SCM? If anyone knows anything about this or has any ideas that would be super helpful, thanks! Yes, didn't make sense in the first place, since it's not actually income, your credit/wallet funds on Steam doesn't represent real-world money, since these funds can't be spend outside of Steam. BUT it's a different story if you were to use these funds to buy items and trade said items for real-world money, using PayPal or using Marketplace.tf, then it actually is considered income. Link to comment Share on other sites More sharing options...
DanielDee Posted July 7, 2020 Share Posted July 7, 2020 7 hours ago, MasterMinder said: Yes, didn't make sense in the first place, since it's not actually income, your credit/wallet funds on Steam doesn't represent real-world money, since these funds can't be spend outside of Steam. BUT it's a different story if you were to use these funds to buy items and trade said items for real-world money, using PayPal or using Marketplace.tf, then it actually is considered income. So your saying because its not real world money it doesnt apply? Im not so sure about that. Im sure if you sold a car for massive profit for bitcoins and the IRS got wind of it im sure they wouldnt say "oh the money isnt real it doesnt matter." Link to comment Share on other sites More sharing options...
Zeus_Junior Posted July 7, 2020 Share Posted July 7, 2020 2 hours ago, DanielDee said: So your saying because its not real world money it doesnt apply? Im not so sure about that. Im sure if you sold a car for massive profit for bitcoins and the IRS got wind of it im sure they wouldnt say "oh the money isnt real it doesnt matter." Bitcoins can be spent outside of steam Steam wallet funds can only be spent on steam items Link to comment Share on other sites More sharing options...
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