Steam trading card sale IRS message

[dave2164]

So I decided to put my trading cards I earn from card drops up for sale in the community store when I get them. Anyone who has done this know you only get a few pennies per card. Maybe after you sell a ton of them you can make about a buck. This money goes into the steam wallet and can be used towards game purchases but cannot be withdrawn for cash. I guess it's mostly just for fun.

But when I went to sell a few cards a message popped up saying that because I created more than 150 listings this year that I'm required to provide information if I wish to continue such as proof of citizenship and a social security number. I was amused but also appauled by how outrageous that message is. Steam is telling me that by selling steam cards for steam credits that they give and earning cents... not dollars... cents that only amounts to a gift card credit and not income, that I'm supposed to report this on taxes. You got to be kidding me. It's disappointing that I'd even get such a message and I will not be submitting such information or selling cards again since the hassle isn't worth a few cents towards a game lol.

Since this is a suggestion/ideas part of the board I'm suggesting that steam remove this message or change the system where you can't sell trading cards for wallet credit anymore.

[FFL2and3rocks]

It's the law. If you don't like it, contact a congressman.

[dave2164]

Originally posted by FFL2and3rocks:

It's the law. If you don't like it, contact a congressman.

Nobody makes income from this. I buy a game with money. I play the game and steam decides to give me some trading cards. Then on the steam service you can sell the cards for a few pennies which are added to the steam wallet and can't be withdrawn or collected. You can only use it as a credit for game purchases and then this dumb message comes up one day.

If I buy you a gift card to steam for a ridiculously low amount for like $1, do you file income taxes on that?

[FFL2and3rocks]

Unfortunately, the law doesn't see it that way. As far as the government is concerned, money you make on the market is income, no different than an actual job. They don't care that it's only store credit to spend on games. But your earnings aren't reported to the IRS unless you make more than $20,000 during the year. The law is mainly meant for places like Ebay and Amazon, but it still applies here.

[Satoru]

Please feel free to ask Wesley Snipes how ignoring the IRS worked out for him

The IRS requires citizens report income. It also requires companies that collect revenue to report citizens that make a certain amount of money or make more than a certain number of transactions per year

You can either

1) provide the required documentation if you are a US citizen at which point you can list as many items as you want
2) provide the required documentation that you are not a US citizen at which point you can list as many items as you want
3) refuse to provide the documentation and be limited to 200 items per calendar year

This is non negotiable

[dave2164]

Originally posted by FFL2and3rocks:

Unfortunately, the law doesn't see it that way. As far as the government is concerned, money you make on the market is income, no different than an actual job. They don't care that it's only store credit to spend on games. But your earnings aren't reported to the IRS unless you make more than $20,000 during the year. The law is mainly meant for places like Ebay and Amazon, but it still applies here.

Yes I did see the part where it's not reported unless it's 20k a year which obviously isn't going to happen by selling some trading cards for a few cents each. Still, I won't be submitting information or participating in that process anymore because it's not worth the trouble for a few cents.

I think steam should just make it so you can only trade cards and not sell them if Johnny Law is giving them a hard time about it.

[FFL2and3rocks]

Originally posted by daveblade:

I think steam should just make it so you can only trade cards and not sell them if Johnny Law is giving them a hard time about it.

You already can, it doesn't affect trading. Reaching the limit won't stop you from trading. But obviously they aren't going to just remove the market entirely, they make too much money from it. Even if they are only worth pennies each, they add up.

[Spawn of Totoro]

https://www.irs.gov/businesses/understanding-your-1099-k
https://www.house.gov/representatives/find-your-representative

Originally posted by daveblade:

I think steam should just make it so you can only trade cards and not sell them if Johnny Law is giving them a hard time about it.

You are free to choose not to use the market.

The 200 items sold will reset every year, so if you choose to use the market, you can stop there and wait until next year to sell more.

[dave2164]

Originally posted by Spawn of Totoro:

https://www.irs.gov/businesses/understanding-your-1099-k
https://www.house.gov/representatives/find-your-representative

Originally posted by daveblade:

I think steam should just make it so you can only trade cards and not sell them if Johnny Law is giving them a hard time about it.

You are free to choose not to use the market.

The 200 items sold will reset every year, so if you choose to use the market, you can stop there and wait until next year to sell more.

Sounds like a plan. I can't be the only one that thinks that it's a silly system though getting a notice to provide information for the IRS over this.

[cSg|mc-Hotsauce]

Read https://support.steampowered.com/kb_article.php?ref=6088-UDXM-7214#whyforms

[Spawn of Totoro]

Originally posted by daveblade:

Sounds like a plan. I can't be the only one that thinks that it's a silly system though getting a notice to provide information for the IRS over this.

As there are items that can sell for thousands in the Steam Community Market, I can see a need for it.

Even store credit is considered taxable by the IRS, as is winning something in a contest and many other things people don't consider taxable, but are legaly supposed to claim it when you file taxes.

Remember, you also exchange that store credit for item that have value, such as the game on Steam. Even with other users, it is still money changing hands and profits can be made.

[dave2164]

Originally posted by Spawn of Totoro:

Originally posted by daveblade:

Sounds like a plan. I can't be the only one that thinks that it's a silly system though getting a notice to provide information for the IRS over this.

As there are items that can sell for thousands in the Steam Community Market, I can see a need for it.

Even store credit is considered taxable by the IRS, as is winning something in a contest and many other things people don't consider taxable, but are legaly supposed to claim it when you file taxes.

Remember, you also exchange that store credit for item that have value, such as the game on Steam. Even with other users, it is still money changing hands and profits can be made.

What sells for thousands and who would pay thousands for some digital item to have in their inventory? haha I'm curious now.

[cSg|mc-Hotsauce]

https://steamcommunity.com/market/search?appid=730#p1_price_desc

Just for CS:GO. Every game has high value items.

Ignore the AUG that just got listed.

[Spawn of Totoro]

Originally posted by daveblade:

What sells for thousands and who would pay thousands for some digital item to have in their inventory? haha I'm curious now.

Originally posted by cSg|mc-Hotsauce:

https://steamcommunity.com/market/search?appid=730#p1_price_desc

Just for CS:GO. Every game has high value items.

Ignore the AUG that just got listed.

:qr:

Yep, just do a search and sort by price. One would be surprised at how much is spent on these things. They sell even higher off-steam due to there being no cap on the market out there.

[cSg|mc-Hotsauce]

Once they increased the sell limit to ~$1,800, things got interesting.

[Satoru]

Originally posted by daveblade:

What sells for thousands and who would pay thousands for some digital item to have in their inventory? haha I'm curious now.

https://steamcommunity.com/market/listings/570/Inscribed%20Dragonclaw%20Hook

https://steamcommunity.com/market/listings/730/Sticker%20%7C%20Clan-Mystik%20%28Holo%29%20%7C%20Katowice%202014

https://steamcommunity.com/market/listings/730/M4A4%20%7C%20Howl%20%28Minimal%20Wear%29