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06-16-2014 02:43 AM
There is a LOT of craziness, misinformation, panic, dread and confusion about the IRS and PayPal/eBay. After a LOT of searching because I'm thinking of selling again, this is what I found:
-There is NO info on the IRS site that specifically mentions PayPal...of course not.
-Searching Google, I found a PayPal page written in 2011...
"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:
You may be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.
If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013."
-Why did some of you get letters from the IRS when you didn't come near the TWO specifications listed above??? My only guess...THEY are the IRS. https://cms.paypal.com/us/cgi-bin/marketingweb?cmd
-Doing a search today for Internal Revenue Code (IRC) Section 6050W at the top of the PayPal page, this is what I found:
Now that I've depressed myself and most of you, let's hope we don't continue to starve!
05-12-2014 06:29 PM
All income from eBay sales is taxable, 1099 or not. But the IRS generally doesn't care about a few sales made a year.
There should be no reason that you are paying double taxes on items sold. If you fill out a Schedule C, you can write off your acquisition and selling costs, and only pay taxes on your profit. That's as it should be, since any profit is a capital gain.
eBay and PayPal do have paid lobbyists: http://www.ebaymainstreet.com/
05-12-2014 02:02 PM
typical response from a company man.
Expect a 1099 from ANY & ALL sales.
If you sell on craigslist, you can avoid this, BUT
You also risk being ripped off in buying goods (paypal & eBay offer seller protection)
and you have to deal with the local public on craigslist, unless you offer to sell outside your locality and accept money orders, cashier's checks or personal checks.
What I hate is that even though I bought and paid taxes on new stuff, when I sell it, it gets taxed again!
Paypal & eBay should have paid lobbyists/politicians more to avoid this!!! It used to be you would not get a 1099 unless you sold $20,000 or more. But now, expect to get one for any sales, period!
03-03-2014 10:44 AM
now that you've posted on this thread the IRS is going to be looking at you very closely !
NOT !!! .................................................
01-07-2014 02:56 AM
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!
Hope this helps!
01-07-2014 12:22 AM
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.
01-06-2014 01:05 PM - edited 01-06-2014 01:05 PM
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
12-31-2013 10:13 AM
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.
12-31-2013 07:36 AM
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.
12-31-2013 06:05 AM
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.
12-26-2013 06:42 PM
12-26-2013 06:37 PM
01-26-2013 09:52 AM
Has anyone signed up for eBay's APP, Outright?
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.
01-26-2013 05:31 AM
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.
01-24-2013 07:54 AM
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.
01-23-2013 08:25 PM
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