eBay

lindaevelyn · ‎02-03-2022

Ebay sent me a 1099-K form for 2021 tax year. However, my sales were below $6000.00 and my number of transactions below 127! So in no way would I qualify under the limits set for the year 2021 which was $20,000 and 200 transactions! Looks like someone at Ebay made a big mistake and applied the new limit of $600 to 2021 sales and didn't bother to wait until this year, 2022 when they take effect! This would mean I would have to report this to IRS on my tax return this year and pay a combined tax on it of 30% that I shouldn't have to, but under the law, I am duty bound to report any income that a filer reports to the IRS under form 1099K! I wonder how many other people this has happened to? How will ebay correct this? Will they pay the tax I owed since it is their mistake? I have contacted them and all they say is yes, this happened, especially in California, and they would fix it. But when??? I need to file my taxes and still have hear nothing from ebay. Everyone - if you got a 1099-K make sure you really were supposed to!!

espresso_warehouse · ‎02-14-2022

@fashion-vibes wrote:
Hi I hope you can help me .I received the email as well to disregard the incorrect 1099-k. I'm confused a bit as I'm over the transaction threshold my transactions were 220 and gross sales I'm under 20k I made 7K. Because I'm over the transaction threshold should I presume this 1099 k was indeed furnished to the IRS? And take my mailed copy to my accountant?

You should fwd the 1099k to your CPA as well as fwd them the email from eBay. Your CPA can discern if it was sent to the IRS or not, and whether you should claim the items regardless.

Sounds like you should claim it. Personally I think they should send 1099-k to everyone to reduce this confusion. They are going to be forced to soon enough anyway.

pburn · ‎02-15-2022

@fashion-vibes

Please refer to the following thread, which is pinned to the very top of the Selling discussion board. It is directed toward California-based sellers:

California 1099-K for 2021 : to be fixed

fashion-vibes · ‎02-15-2022

Thank you so much for your help . I agree . Have a great week !

elcarmesi · ‎03-05-2022

I filed my taxes yesterday, It affected me a lot in my tax return, it was approximately 500 dollars that I lost because of the mistake they made. This form could not go unnoticed since I am in the process of petitioning with immigration and I need to have all my taxes in order. I hope Ebay takes responsibility with regards to this even though I doubt it. They say it was a technical problem however, the computers do not send reports by themselves, that was not a technical problem, it was a problem caused by the employees who did not know how to do their job.

sacreds15 · ‎03-22-2022

I am so angry, this happened to me and I may lose my health insurance (Medi-Cal) because of this erroneous 1099....I called 11 times and was told each time a report would be filed and they would get back to me, that was 3 months ago. NOW this year the 90 day total is wrong on my Ebay sales counter....Ionly sold $200 and it showes $599?

hdo_090728 · ‎03-25-2022

Hi. I received form incorrectly about tax ebay, but I filled my tax return. So what should i do about it?

monica-sells · ‎03-25-2022

@sacreds15

not to be brash, but I recommend buying a new calculator...

Just a quick check on your "sold" items I added up almost 400 in sales (price + shipping)

you do know that sales totals are totals...not just your "payout"

you reduce the total with your expenses......

dbfolks166mt · ‎03-25-2022

Take a look at your detailed payouts since 1 January. My guess is several of your payouts did not actually happen until after 1 January although the sale was completed in 2021. You had several items that sold on 30 and 31 December.

dbfolks166mt · ‎03-25-2022

How do you figure the error, whatever it was, cost you the loss of $500? Not much detail in your post so hard to ascertain what the problem would have been. If the $500 represents additional income tax you had to pay on an inflated 1099 and you are in a 22% tax bracket after deductions that would mean the 1099 was inflated by a considerable amount that resulted in an additional ~$2,500.00 in net income.

bruin03 · ‎03-25-2022

I submitted my taxes yesterday, including the 1099-K info from ebay.

The next day I received a letter from ebay saying this was sent by mistake!

What to do? I already submitted the forms to the state and federal IRS??

nobody*s_perfect · ‎03-25-2022

You don't have to do anything. The "mistake" was in sending 1099-K's to sellers in a state that didn't require it. But the net effect on your tax obligation is probably nil.

patrickarcher · ‎03-26-2022

I'm currently out $177 to the IRS because of ebays " mistake".. I had already filed & paid my tax on the ebay sales...ebay will not reimburse me for their error...I talked to the tax department and still, they won't reimburse me...I'm closing my account. Ridiculous that a multi-billion business makes a mistake and won't correct their wrong..

monica-sells · ‎03-26-2022

@patrickarcher

If you overpaid your income tax due to an error in your 1099-K, you simply need to file an amended return with the correct amount. You will get that difference refunded. Why close your account?

------------------------------------

Are there ANY positive posts in this forum?

The forums are found under “help”, not “share your success story”. Many people do not like finding out that a core issue is sometimes in the mirror.

blingfling123 · ‎03-26-2022

@sacreds15

If eBay sent a 1099 that had true incorrect data (wrong amounts), that would require a corrected 1099 form and an amended return. This is the only case where I could see someone legitimately losing benefits due to an error. Is this what you think happened?

If eBay sent a 1099 that was correct but did not need to be sent based on the published threshold amounts, it should not affect your benefits if you are filing correctly. The sending of a 1099 has nothing to do with your obligations for reporting income to the IRS and your state.

An entity is required to send a 1099 based on certain criteria, but they can send one any time they want for any amount they want.

avtaxman08 · ‎03-27-2022

regardless of requirements by federal or State agencies, Ebay has sent out letters to clients of mine for taxes stating the 1099 K was sent in Error and to disregard the form. This is not able to be done since I have already filed taxes for many of my clients that received one and claimed the additional income as directed by the IRS.

Now, for all who have recently received a 1099 K from Ebay and you have not prepared your taxes yet, do not use the form. As for anyone that did file taxes and used the form, contact Ebay in the Finance or Tax dept and ask for a Manager. request the address to submit a claim for damages to Ebay in the amount $50 per IRS guidelines and additional damages in the amount $500 per State guidelines in CA and $250 for all other states. If they refuse, tell them you will notify the IRS of an Erroneous 1099 K sent by Ebay which is a violation of the IRS Revenue Code and they can assess penalties as they deem necessary for the mistake.

Trust me, if the IRS gets involved, they could pay 10 times more per offense. Go get paid everyone.