on 01-10-2013 01:13 PM
I am hearing that sales totaling $600 or more on eBay for 2013 will be considered reportable income to the IRS and any sellers reaching that total will be sent a 1099.
Please clarify. That is a significant change from the $20K and 200 items sold from past years.
on 01-10-2013 03:30 PM
That's doubtful. There are many, many different 1099 forms, each one designates a different type of income source other than a regular job (such as INT, DIV, S, you've probably seen some of those from your bank or stock accounts). Sounds like someone is mixing up the forms.
the 1099-K is what eBay'ers will get from PayPal for gross receipts totaling $20K & 200 transactions. Hard to believe the IRS would drop that limit down so drastically at once.
There is a 1099-MISC that has a min threshold of $600 for payments made to a freelancer, for example. It has nothing to do with ebay sales.
You can go on the IRS website, or google some of the financial and/or tax sites (Turbo, etc) to learn more.
I did read recently, however, that the IRS intends to increase their audits on small business 1099-K form matching in 2013.