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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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235 REPLIES 235

Re: Does Ebay or Paypal report our sales to IRS?

The $20,000 wouldn't worry me because I wouldn't come anywhere near that with my selling habits. However, that second prerequisite for over 200 payments worries me quite a bit. A lot of us can make 200 payments from buyers but not come anywhere near the 20,000 threshold. Does this mean they take one or the other into account, or both?
Message 31 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

stefs_clothing
Adventurer
The $20,000 wouldn't worry me because I wouldn't come anywhere near that with my selling habits. However, that second prerequisite for over 200 payments worries me quite a bit. A lot of us can make 200 payments from buyers but not come anywhere near the 20,000 threshold. Does this mean they take one or the other into account, or both?


I take it to mean that they will report those of us who have more than 200 payment deposits. In all honesty, it's best to just go ahead and file income taxes. It's really pretty easy to deduct almost all of your eBay income so you won't owe that much. Talk to a tax professional and see what you can deduct.
Message 32 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

wasn't the original proposal from the IRS for sales $600.00 +?
ebay talked em to $20,000.00.
Message 33 of 236
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Re: Does Ebay or Paypal report our sales to IRS?



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.


In Canada by law the only folks that can ask for your SSN are the police , the Govt, and the Automible Insurance Board ( drivers liecence & stuff).
The CC forms all get around that by putting OPTIONAL next to the SSN box.

The more you know...........!!!!


Who will save the river valley , that's my drinking water.! "Moxy Fruvous"
Message 34 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

That's awesome, since most of the stuff I sell is for other people

How do they know who is keeping the money?? I shouldn't have to pay taxes on someone else's money.
Message 35 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I have the same thoughts and question.

What about the “AND” in the wording between 1 and 2?

Such a little word yet so very critical in the compostion of the statement.

However, I guess with the semi colon it means either/or, not "AND".

This is how it's written-

Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:

1-receive more than $20,000 in payment volume in a single year; and
2-receive more than 200 payments in a single year.

This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012. Our goal when the legislation takes effect is to make it easy for PayPal merchants who fall under the provision to report their taxable incomes.
Message 36 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

This is in reference to Wrathofzero...
I have the same thoughts and question.

What about the “AND” in the wording between 1 and 2?

Such a little word yet so very critical in the compostion of the statement.

However, I guess with the semi colon it means either/or, not "AND".

This is how it's written-

Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:

1-receive more than $20,000 in payment volume in a single year; and
2-receive more than 200 payments in a single year.

This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012. Our goal when the legislation takes effect is to make it easy for PayPal merchants who fall under the provision to report their taxable incomes.
Message 37 of 236
latest reply

Re: Does Ebay or Paypal report our sales to IRS?

wasn't the original proposal from the IRS for sales $600.00 +?
ebay talked em to $20,000.00.

Yes Paypal got them to 20k. Although I guess they are the same company basically.
Message 38 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

should i make sure pp has my ss#?:^O
Message 39 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Most of us, if we pulled a schedule C from irs.gov, went thru the steps and then REALLY figured our costs would be quite surprised at how little we earn. Count every nut & bolt, bell & whistle that you spend on your business - that's a business expense. Gas to get to auction? business expense. Packing materials, likewise. Just work it up quick and dirty and it's not that scary. Some bigger equipment, camera, computer etc., might fall under capital expenditure and need to be amortized (that may not be the right word, I'm having a blond/gray moment), but that's for my tax man to figure; just give him every little bitty receipt that pertains to the business.
Happy Sales To You!.....Until We Sell Again!
Message 40 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

i got it all figured out,i make 12 cents per hour...lol.....
Message 41 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Darn, that's probably 11 cents more than I make an hour, and I've been doing it for about ten YEARS! LOL
Happy Sales To You!.....Until We Sell Again!
Message 42 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

:^O:^O:^O
Message 43 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

gotta enjoy it!
the extra $ comes in handy,starting to look like a junk yard around here,even with the the stuff i throw away,ya still make out!
Message 44 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Yes, and now the little bit of profit you were making on eBay will go to your tax accountant and the IRS at the end of the year. The good news is; everything associated with selling on eBay is tax deductible.
Message 45 of 236
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