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Does Ebay or Paypal report our sales to IRS?

janies_bizz
Enthusiast
I just started selling on Ebay and Im a little worried about reporting my extra little income. Its not that much but is there like a certain amount that I have to make for them to report or how does this work? Any help would be appreciated. Tax time is near.
Message 1 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

kris*scloset619
Enthusiast
So credit reporting agencies hand out our social security numbers when a business asks for them? That's interesting.
No Bad Days Pictures, Images and Photos
Message 16 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


Maybe I was mistaken & they don't get them from Credit Reporting Agencies. Lifted from this URL: http://www.privacyrights.org/fs/fs10-ssn.htm#11

SSN required by federal law. Federal law requires private businesses to collect your SSN when (1) you are involved in a transaction in which the Internal Revenue Service requires notification, or (2) you are engaged in a financial transaction subject to federal Customer Identification Program rules (see below “Why do financial transactions require my Social Security number?”, http://www.privacyrights.org/fs/fs10-ssn.htm#14).

So they get them from the Federal Gov? Dunno... I do know all businesses can get them easily... And hackers get from the businesses!

Hope this helps!

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 17 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

mickey420xxx
Enthusiast
How do they know it's the right person, not someone with the same name? There are two other people in my town that have the same name as my boyfriend, not he's not related to either. The people who owned our house before us had the same last name as him, too. There not related either.
Message 18 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

How do they know it's the right person, not someone with the same name? There are two other people in my town that have the same name as my boyfriend, not he's not related to either. The people who owned our house before us had the same last name as him, too. There not related either.


Same name maybe but they have differentt birth dates, place of birth, places of employment, addresses, etc. The CIA has nothing over the IRS.
Message 19 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

BTW, If you have the type of acct. with paypal where you earn interest then they already have your SS#.
Message 20 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


Good question! My snarky answer would be, That's what SSN's are for!😉

But my real answer is you should be prepared for the shoe to fall. If you qualify, $20K in sales or 200 transactions per year as I do, I would save everything electronically. I have gmail & I save all my sales as well as all my expenses, eBay fees, PayPal fees, USPS fees, packaging product costs etc. As someone recently posted, I got me one of those PayPal Debit cards & use it for when I need to use the Post Office. If PayPal's gonna report me I'll let them be my receipt holder!

Hope this helps!

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 21 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


Good afternoon Blue-Vintage! Wanted you to know your helpful posts hadn't gone unnoticed....
The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 22 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

When I first started ebay I heard as long as we don't make 500.00 a month we didn't have to file taxes. Never heard about 200 sales..That is easy if you sell 99 cent items. 20,000 a year seems like a taxable amount. This is all I know about this subject, I need to study more about this subject. Seems we pay ebay enough they should tell us the rules. Thanks
Message 23 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


Hi miaminda and welcome to The Part Timers Forum!


"Seems we pay ebay enough they should tell us the rules."

http://www.etaxes.com/eBay.htm

http://internetbiztaxtips.com/2008/07/paypal-and-ebay-must-report-transactions-to-the-irs/

Hope this helps!

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 24 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


Good afternoon Blue-Vintage! Wanted you to know your helpful posts hadn't gone unnoticed....


Hey honda; Thanks for your nice post. Your bugs..I keep wanting to swat at my screen.
Message 25 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

This is ALL courtesy of the new health care law. They have to figure out how to pay for it and one of the ways is to try and find unreported income.

If you meet the threshold already stated ebay/paypal has to report it and send you a 1099. Your then responsible for paying tax on the income as if you were an actual brick and mortar business.

Legally your supposed to report the first dollar you earn as income. How you handle it depends on the chance you wish to take.
Message 26 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Hi Rid0617 & welcome to The Part Timers Forum!

Legally your supposed to report the first dollar you earn as income. How you handle it depends on the chance you wish to take.

This is correct but you can also claim expenses up to the income.

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 27 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I am not clear on the 2011 reporting of eBay income--I do not sell anywhere near $20,000 a year but I have about 600 sales a year. What do I do?
Message 28 of 236
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Re: Does Ebay or Paypal report our sales to IRS?



Hi StampManTom & welcome to The Part Timers Forum!

I am not clear on the 2011 reporting of eBay income--I do not sell anywhere near $20,000 a year but I have about 600 sales a year. What do I do?

Sorry, no one here is a tax consultant so we can't offer tax advice. You could review all the Links above & see if anything is appropriate to your situation?

Hope this helps!

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 29 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Any of you remember giving pay pal your social security number when you signed up?


No, I don't remember doing that. Did I?

I know that I am limited to withdrawing $500/month from my account, and to lift the limit one of the things I can do is "confirm my SSN". I don't know if I ever gave it to them in the first place (I'm pretty particular about that!), so I won't "confirm" it.
Message 30 of 236
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