Tallying the toll of an ongoing disaster

Summary

Marketplace Morning Report: Tallying the Toll of an Ongoing Disaster
Release Date: January 13, 2025
Host: Sabri Ben Asore

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1. Los Angeles Wildfires: Escalating Crisis and Government Response

The episode opens with a detailed report on the devastating wildfires currently engulfing Los Angeles. Sabri Ben Asore highlights the severe conditions as "strongening winds and increasing fire danger" continue to challenge firefighters battling the flames that have already devastated numerous communities.

Casualties and Destruction
As of the report, 24 people have lost their lives due to the fires, with the number tragically on the rise. The economic toll is equally staggering, with economic losses estimated up to $150 billion by Accuweather. Additionally, 12,000 structures—comprising homes and businesses—have been destroyed or damaged, with 2,500 confirmed as entirely destroyed.

Governor Gavin Newsom’s Initiative
California Governor Gavin Newsom has taken proactive steps to facilitate the rebuilding process. Speaking on NBC's Meet the Press at [01:34], Newsom emphasized the administration’s commitment to support affected residents:

“We've got to let people know we have their back. We're going to be back. We're going to do it efficiently and effectively because we want you to come back, rebuild and rebuild with higher quality building standards, more modern standards, and we want to make sure that the associated costs with that are not disproportionate.”

In response, Newsom issued an executive order suspending certain permitting requirements to accelerate reconstruction. This move includes extending price gouging protections on construction and building materials and directing state agencies to streamline permitting processes specifically for the two largest fires.

Insurance and Inspection Efforts
Inspectors have been deployed across neighborhoods to assess the damage, a critical step in expediting insurance claims. Nova Saffo provides further insights into these measures and their implications for the affected communities.

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2. Shift in Immigration Policies with Incoming Trump Administration

The podcast transitions to the political arena, focusing on the preparations by President-elect Donald Trump's team and Republican members of Congress as they gear up for the new administration's first day in office. Immigration emerges as a prominent early priority.

Anticipated Policy Rollbacks
K. Kathleen Bush Joseph, a policy analyst at the Migration Policy Institute, anticipates that the Trump administration will "roll back a lot of what the Biden administration put in place," particularly concerning immigration reforms such as the expansion of temporary protected status for certain groups [02:54].

Legislative Moves and Legal Challenges
Concurrent with executive preparations, Congress is advancing a controversial bill aiming to mandate the detention of undocumented individuals accused of crimes like theft or shoplifting, regardless of whether they have had a court hearing [03:00]. Doug Lagour from the RAND Corporation's Homeland Security Research Division elaborates on the complexities and potential legal repercussions of such measures.

Judicial Oversight and State Intervention
The statute also proposes empowering state attorneys general to sue the federal government over the release of specific individuals from detention, a move deemed "pretty unprecedented" by K. Kathleen Bush Joseph [03:22]. Sarah Goodman, a political science professor at UC Irvine, observes that "Republicans making these moves early sends a clear message," indicating the seriousness with which the GOP is addressing immigration—a top issue for their base [03:53].

Market Readiness
Nova Saffo remarks on the tangible actions being taken ahead of Trump's inauguration, noting that "even before Trump takes office, immigration is not just a talking point. Republican leaders are very serious about delivering." This underscores the administration's immediate focus on reshaping immigration policy [03:45].

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3. Tax Season Alert: Lowered Threshold for 1099-K Forms

Mark Steber from Jackson Hewitt Tax Service discusses significant changes affecting taxpayers, particularly those utilizing third-party payment platforms like PayPal, Venmo, and Cash App.

Lowered Reporting Threshold
Traditionally, individuals received a 1099-K form if they processed over $20,000 through these platforms. However, this threshold has been reduced to $5,000 for the 2024 tax year [05:28], with plans to further decrease it to $600 by 2026. Mark Steber clarifies:

“The 1099K has been around for a long time and it was used primarily for payments made through any third party app like, you know, Venmo or PayPal. The reason you hadn't heard about it was because until this year the threshold was pretty high.” [05:28]

Implications for Users
This change means a broader range of individuals, including those not traditionally self-employed, may receive a 1099-K, necessitating accurate reporting of all taxable income. Steber emphasizes that “if you got PayPal money or Venmo money over $5,000, then you might get a 1099K. Now that's per platform. So if you use multiple platforms, you don't add them all together, it's 5,000 on that platform.” [05:19]

Exemptions and Clarifications
Notably, Zelle is exempt from this reporting requirement, as it does not classify itself as a third-party platform. However, regardless of receipt of a 1099-K, Steber advises that “if you're doing a side hustle business paid this way, it's always been taxable.” [06:34]

Handling Gifts and Personal Payments
For non-business transactions, such as personal gifts, recipients should not receive a 1099-K. Steber advises that if such forms are mistakenly issued, individuals should request an amended 1099 from the platform or address it directly with the IRS to avoid discrepancies [07:14].

Final Advisory
Mark Steber closes with a reminder not to ignore any 1099-K forms received, as the IRS has corresponding records and discrepancies could lead to complications [07:06].

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Conclusion

This episode of the Marketplace Morning Report offers a comprehensive overview of pressing issues ranging from the catastrophic wildfires in Los Angeles and the governmental measures to address them, to the impending shifts in U.S. immigration policies under the new Trump administration. Additionally, listeners are alerted to significant changes in tax reporting requirements that could impact a broad spectrum of taxpayers. Through insightful reporting and expert commentary, the program ensures that listeners are well-informed about critical developments shaping the economic and political landscape.

Transcript

[Unknown Sponsor]

This Marketplace podcast is supported by Glassdoor, announcing the best places to work in 2025 as determined by anonymous reviews from the people who Know Best real employees. Did your company make the list this year? Learn who's leading the way in workplace culture and employee satisfaction and see who's hiring today. Then join the conversation in the Glassdoor community to plot your next career move and make the most of your work Life. [e-mail].

[Sabri Ben Asore]

The latest on the LA fires from Marketplace. I'm Sabri Ben Asore in for David Brancaccio. Los Angeles is starting the week with the prospect of strengthening winds and increasing fire danger, even as firefighters continue to battle flames that have already destroyed so many communities. 24 people have died. That number has been rising and could continue to rise. We're also getting new information on the number of homes destroyed, new estimates on the likely economic costs, and new policies to help with the eventual rebuilding. Marketplace's Nova Saffo has the details.

[Nova Saffo]

In Los Angeles, 62 square miles, an area larger than all of San Francisco, has already burned. Inspectors have fanned out into neighborhoods to survey the destruction. Their task is urgent because it helps move the insurance claims process along. Meanwhile, California governor Gavin Newsom over the weekend issued an executive order suspending certain permitting requirements to speed up reconstruction when the time comes. Newsom spoke on NBC's Meet the Press.

[Gavin Newsom]

We've got to let people know we have their back. We're going to be back. We're going to do it efficiently and effectively because we want you to come back, rebuild and rebuild with higher quality building standards, more modern standards, and we want to make sure that the associated costs with that are not disproportionate.

[Nova Saffo]

To that end, Newsom extended price gouging protections on things like construction and building materials and tasked state agencies with finding more ways to speed up permitting of the two largest fires. Officials now estimate that some 12,000 structures, homes and businesses have been destroyed or damaged so far. Inspectors have confirmed 2,500 are destroyed. The final price tag won't be known for a while, but Accuweather estimates economic losses of up to $150 billion. I'm Nova Safa for Marketplace.

[Sabri Ben Asore]

President elect Donald Trump's staff and Republican members of Congress are getting ready for Day one of the new administration. They're preparing both executive orders and legislation for the president elect to sign as soon as he takes office. As Marketplace's Kimberly Adams reports, immigration is likely to be an early priority.

[K. Kathleen Bush Joseph]

Some of the early moves of the incoming Trump White House will be in response to the moves of the outgoing Biden White House, says K. Kathleen Bush Joseph, a policy analyst at the Migration Policy Institute.

[Mark Steber]

So I think that we can expect the Trump administration to be rolling back a lot of what the Biden administration.

[K. Kathleen Bush Joseph]

Put in place, like expansions of temporary protected status for certain groups. Meanwhile, Congress is teeing up a controversial bill that would require detentions of undocumented people accused of crimes like theft or shoplifting, even if they haven't had a day in court yet. Doug Lagour is with the RAND Corporation's Homeland Security Research Division.

[Nova Saffo]

The other sections of the statute have to do with states attorneys general being able to essentially sue the federal government for releasing certain types of individuals from.

[K. Kathleen Bush Joseph]

Detention, which La Gore says would be pretty unprecedented. Republicans making these moves early sends a clear message, says Sarah Goodman, who teaches political science at UC Irvine.

[Nova Saffo]

What we're seeing here, even before Trump.

[Unknown Sponsor]

Takes office, is immigration is not just a talking point. Republican leaders are very serious about delivering.

[K. Kathleen Bush Joseph]

For their base, and the election revealed immigration is very much a top issue for the GOP base In Washington. I'm Kimberly Adams for Marketplace.

[Rachel]

Hi, this is Rachel from Richardson, Texas. I love the unique perspective that Marketplace offers. As a psych major, I love listening to stories and interviews that include behavioral economics and consumer psychology, which can be hard to find in other reporting about the economy. I I also enjoy hearing the experiences of small business owners around the country. Join me in supporting Marketplace with a gift today. Go to marketplace.org donate.

[Sabri Ben Asore]

Self employed people that send and receive payments using things like PayPal Venmo Cash app. They get a special tax form, something called a 1099 K but they'd only get it in the past if they made at least $20,000. Now the threshold has been lowered to just $5,000 and a lot more people could find one of those forms in their mailbo if they are not self employed. Mark Steber is with Jackson Hewitt Tax Service. He spoke with my Marketplace colleague David Brancaccio.

[Doug Lagour]

If a person does contract work for pay, you've always had to report your income at tax time. But what is this 1099K? I have not seen that one before.

[Mark Steber]

The 1099K has been around for a long time and it was used primarily for payments made through any third party app like you know, Venmo or PayPal. The reason you hadn't heard about it was because until this year the threshold was pretty high for when One of those third party platforms had to send a 1099K to both the recipient of the monies and to the irs.

[Doug Lagour]

All right, we're going to clear this up. What is it for this tax year that we're concerned about, which is 2024? It's like 5000, right?

[Mark Steber]

It is 5000. They've considered it a transition year. So they've gone from 20,000 last year to tax year 24, the year you'll be doing your taxes here in a few weeks, to $5,000. Now for tax year 26, the threshold is $600. And to be clear, those are locked in stone as the rule. So if you got PayPal money or Venmo money over $5,000, then you might get a 1099K. Now that's per platform. So if you use multiple platforms, you don't add them all together, it's 5,000 on that platform.

[Doug Lagour]

But not Zelle. This is a Zelle exemption.

[Mark Steber]

Well, Zelle does not consider themselves a third party platform. And whether you get one or don't get one, or whether you're doing side hustle business paid this way, it's always been taxable.

[Doug Lagour]

What if you're selling an old sofa, an old lampshade and it does accumulate and it is more than 5,000. Could you get one of these for just selling stuff?

[Mark Steber]

Absolutely. There's no rule because it's, you know, a hobby or a side gig or part time, if you're getting paid, unfortunately it's a taxable gain, even if it's a dollar.

[Doug Lagour]

What about if my rich Aunt Sally sends me 400 bucks on PayPal to get me through the month? How about that situation?

[Mark Steber]

You know, if you've got a gift or a payment, those are completely not taxable. And furthermore, you should not get that on a 1099K. That being said, if you didn't fill out the platform activity correctly and you didn't put personal payments and they send you a 1099k, you can either get an amended 1099 by asking the platform or. Or the IRS in their infinite wisdom, have figured out how to put it on your tax return on a line and back it off in another line. But you can't ignore it if you get one, because the IRS has it too. And they may not have all the facts and knowledge that you have.

[Doug Lagour]

Mark Steber, Senior Vice President, also Chief Tax Information Officer at Jackson Hewitt Tax Service, thank you very much.

[Mark Steber]

Thank you and have a great tax season.

[Sabri Ben Asore]

In New York, I'm Sabree Benishore with the Marketplace Morning report from APM American Public Media.

[Alex]

Hi, this is Alex from Petoskey, Michigan As a college student studying management and finance, I look forward to getting an unbiased report on the US Economy every morning from Marketplace. Even though they aren't there in real life, the Marketplace gang shares every breakfast with me and is the best way to start each day. Join me in supporting Marketplace with the gift today. Go to marketplace. Org Donate.