*lady*madonna*
No.
Ebay follows the law.
The change in the amount of the 1099 threshhold was introduced in the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require Third-Party Settlement Organizations (TPSOs), like PayPal and Venmo (and Adyen-the Ebay payment processor) to report goods and services transactions made by customers with $600 or more in annual gross sales on 1099-K forms. This is industry wide for all Third-Party Settlement Organizations (TPSOs) that you may use to accept payments for the sale of goods and services.
You can read more about it here:
https://community.ebay.com/t5/Announcements/New-1099-K-tax-reporting-requirements/ba-p/32556521
Yes, using schedule C to report self employment income, you deduct all of the costs related to selling your items. Read about schedule C here - https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
Just to clarify - you have always been obligated to pay tax on your profit. What changed is that payment processors now have to report more of the payments collected. Congress made this change because they believe that there is quite a lot of unreported income.
@wildwoodbythesea wrote:IS E BAY DOING ANYTHING TO PREVENT THE GOVERNMENT FROM TAXING US ...
eBay has always been fighting this legislation. Sellers adversely affected by lower reporting thresholds (extra paperwork and accounting expenses, with no change in tax status) need to step up and complain to congress.
https://www.ebaymainstreet.com/issues/1099-k-federal-tax-reporting
