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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?

The legislation was passed a few years ago and implementation was phased in so that calendar year 2011 was the first year that the reporting requirement (for sending the 1099-K's)  was in place. This is not about eBay or Paypal, it's about all financial companies like PayPal that process credit card and other online payments. Here's PayPal's page of explanation:


 


https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

Message 136 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Take this advice or not. Treat your ebay hobby biz like self employment. If you make over 400 USD in a year report it on your Taxes. Also if your selling a product alot of it. (your not selling the once in a blue moon sale) Get a tax ID number for the state in which you sell out of and pay your sales tax. The goverment is broke eventally they will start looking for the tax money.


 


Just my 2 cents

Message 137 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I work with Outright, an eBay preferred bookkeeping program, and you definitely need to report your income, whether you got a 1099-K or not. Fortunately, it doesn't have to be as expensive as some people are posting on here. If you use Outright to keep track of ALL of your income and expenses, then Outright Plus will help you fill in your Schedule C at the end of the year. Some people then use that with Turbotax, others take it to an accountant, etc. 

Message 138 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

It is my understanding that you must meet both the 200 items and the 20,000 in sales.  The $20,000 includes the shipping and funds that are part of your ebay sales.  I read this on Paypal. 

Message 139 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

 


Has anyone signed up for eBay's APP, Outright?

Sounds interesting..


 


Stay on top of your 2012 taxes—sign up for a FREE Outright account. Outright automatically organizes all of your eBay, PayPal, bank and credit card transactions in one place, so that you can get prepared for tax time. And, if you're going to receive a 1099-K from PayPal, Outright has a Tax Resource Center that can help you understand how that 1099-K affects your 2012 tax situation. Visit the resource center and sign up for your FREE account today.

The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 140 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I called paypal. They are the ones that send 1099 to you ONLY if you meet two requirements. Making $20,000 and receiving payments of 200 or more. It has to meet BOTH not just one
Message 141 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

PayPal are the ones that send you a 1099. You have to reach BOTH of these requirements before they send you one. You have made $20,000.00 up AND you have
200 payments made to you. It has to meet BOTH requirements.
Message 142 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Does Ebay or Paypal report our sales to IRS?

 

The odds of any of us, Part-Time Sellers, meeting the

criteria for being reported is slim, to remote, at best.

 

However, the Chinese Government did secretly download

our sales from Edward Snowden's laptop. The information

was given to that country's Mega Sellers, who have been

laughing their pineapple chicken balls off, ever since. 

Message 143 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


@123-jojomartin wrote:
I called paypal. They are the ones that send 1099 to you ONLY if you meet two requirements. Making $20,000 and receiving payments of 200 or more. It has to meet BOTH not just one

Thanks for reviving the thread as we close out 2013. The bottom line is STILL that you have to report your eBay income, WHETHER OR NOT you receive a 1099.

 

I still don't get the hangup about the 1099, unless people are trying to evade taxes.

Message 144 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


@bronx-dog wrote:

 

However, the Chinese Government did secretly download our sales from Edward Snowden's laptop. The information was given to that country's Mega Sellers, who have been laughing their pineapple chicken balls off, ever since. 


 

 

ROFL photo rofl_zps43a5875b.gif photo smiley-laughing001.gifROFL photo rofl_zps43a5875b.gif photo smiley-laughing001.gif
The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 145 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I honestly don't see why our sales aren't being reported for us. How much do you want to bet half the sellers here are unaware of this taxation? I didn't know about it until I was browsing on here just today!! Luckily though I don't meet the said criteria for the tax.

 

They should be doing the work for us. Plus ebay themselves get 10% of every transaction which is ridiculous as is. To make it easier, why doesn't ebay link us to a 1099 when we begin selling and add a deduction for tax upon monthly seller fees?? Common sense you'd think? No, life is always confusing. Always has been.

 

Enough ranting for me 😉

Message 146 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

and add a deduction for tax upon monthly seller fees

 

cuz ther'd be a riot!



Who will save the river valley , that's my drinking water.! "Moxy Fruvous"
Message 147 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I just started selling a little bit again after several years.  I didn't report my income from ebay then and I won't report it now.  I do not have an ebay store - if I did I would expect there would be reporting requirements.  I am just an ordinary citizen selling something I already own.  I am converting an asset from a non-cash form to cash.  I am not receiving an income.  If I have a yard sale every weekend am I supposed to report that conversion of my assets to the IRS as income.  To me this is no different, except I don't have to pay fees to sell from my front yard. 

Message 148 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

 

Good morning Barbara and welcome to The Part Timers Forum.

There is no need to defend your actions here. While I'm not a tax adviser, I do recommend you review these help pages, you might be surprised to find out you're fine and dandy!

 

http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/Tax-Tips-for-Online-Auction-Sellers

http://www.irs.gov/uac/Business-or-Hobby%3F-Answer-Has-Implications-for-Deductions

 

http://www.irs.gov/uac/Is-Your-Hobby-a-For-Profit-Endeavor%3F

 

Hope this helps!


The definition of insanity is doing the same thing over and over again and expecting a different result.
Message 149 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

..

Message 150 of 236
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