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

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

in reply to May 23, 2010 9:13:56 AM
hondamedic
Guide

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!

4,182 Views
Message 21 of 226

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

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

in reply to May 23, 2010 9:15:48 AM
hondamedic
Guide

Good afternoon Blue-Vintage! Wanted you to know your helpful posts hadn't gone unnoticed....
4,126 Views
Message 22 of 226

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

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

in reply to May 23, 2010 9:35:38 AM
miaminda
Enthusiast
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
4,070 Views
Message 23 of 226

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

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

in reply to May 23, 2010 9:47:24 AM
hondamedic
Guide

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!

4,043 Views
Message 24 of 226

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

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

in reply to May 23, 2010 7:45:13 PM
blue-vintage
Trailblazer

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.
4,028 Views
Message 25 of 226

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

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

in reply to Sep 19, 2010 8:59:09 AM
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.
3,825 Views
Message 26 of 226

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

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

in reply to Sep 19, 2010 10:26:30 AM
hondamedic
Guide
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.

3,815 Views
Message 27 of 226

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

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

in reply to Sep 19, 2010 10:50:14 AM
stampmantom
Adventurer
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?
3,815 Views
Message 28 of 226

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

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

in reply to Sep 19, 2010 11:11:16 AM
hondamedic
Guide


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!

3,806 Views
Message 29 of 226

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

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

in reply to Sep 19, 2010 12:50:42 PM
myronann
Pathfinder
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.
3,791 Views
Message 30 of 226

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

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

in reply to Sep 19, 2010 2:38:08 PM
wrathofzero
Enthusiast
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?
3,771 Views
Message 31 of 226

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

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

in reply to Sep 19, 2010 3:09:09 PM
stefs_threads
Enthusiast
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.
3,770 Views
Message 32 of 226

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

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

in reply to Sep 19, 2010 4:15:37 PM
savwillsell09
Thrill-Seeker
wasn't the original proposal from the IRS for sales $600.00 +?
ebay talked em to $20,000.00.
3,765 Views
Message 33 of 226

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

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

in reply to Sep 19, 2010 4:15:53 PM
komokwa
Guide


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"
3,763 Views
Message 34 of 226

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

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

in reply to Sep 19, 2010 4:42:40 PM
casey311wvu
Enthusiast
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.
3,763 Views
Message 35 of 226

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

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

in reply to Oct 5, 2010 10:56:46 AM
eclectibles-r-us
Adventurer
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.
3,762 Views
Message 36 of 226

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

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

in reply to Oct 5, 2010 10:58:05 AM
eclectibles-r-us
Adventurer
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.
3,740 Views
Message 37 of 226

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

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

in reply to Oct 5, 2010 11:01:34 AM
eclectibles-r-us
Adventurer
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.
3,746 Views
Message 38 of 226

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

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

in reply to Oct 5, 2010 2:50:34 PM
savwillsell09
Thrill-Seeker
should i make sure pp has my ss#?:^O
3,747 Views
Message 39 of 226

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

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

in reply to Oct 9, 2010 12:23:48 PM
plantzzer
Rising Star
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!
3,744 Views
Message 40 of 226