I’ve sold $605 this year but my payout is on hold - SSN required? Can I cancel sale? Help!

[pkb0251]

I just sold an item which puts me over a $600 IRS limit evidently and in order to get paid for my last sale I have to give eBay my Social Security number. I am NOT comfortable with this and would rather cancel the sale, refund the buyer his money and be done with eBay. 

Can I do that? 

How else can I get paid without giving my SSN to eBay? 

[candd205]

You can cancel the sale, but you will get a strike against you for the cancellation. If you don't do it again, then no problem, if you do it again, you risk losing your account. If you don't plan on selling ever again on eBay, then no problem.

No other way to get paid, unless you wait and then retrieve it from the state unclaimed funds process, which eBay will turn it over to eventually. You'll have to give you SSN then to get the funds from the state.

[monica-sells]

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@pkb0251 wrote:

How else can I get paid without giving my SSN to eBay? 

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like any other platform/entity you choose to 'sell' on, you can't

they are required to collect this information by law

see "INFORM" Act.....

be sure to thank all that organized theft you scoff at when you watch the news of a store being ransacked

[soh.maryl]

The requirement that you give your SS number is NOT a requirement from eBay.

It's a requirement of the Internal Revenue Service.  Do you not have income from a job or other means? 

If so, then you divulged your SS# to that entity.  

Others have explained to you what can happen if you do not give your SS number.  

[pkb0251]

Why why would you think I “scoff at” news of stores being ransacked by organized theft? Hmm? What is it that you think you know about me? 

[pkb0251]

Thanks, candd205.   I figured I might get a “strike” against me for the cancellation but since I sell only occasionally, I don’t expect to have to do this again in the future. I can wait until next year and put the item up for sale then, keeping any eye on my total yearly sales numbers. I don’t think I’ve EVER sold more than $500 or $600 in a year. 

[pkb0251]

Thanks. I understand that it’s a federal IRS requirement. But since AARP and other entities are working to get this changed to a higher sales threshold, I will choose to cancel the sale for now and wait it out. It’s not crucial that I sell this item right away. 

[ebooksdiva]

Just so you understand, if you cancel the sale for being Out of Stock, the funds returned to the buyer will come out of your payment method on file not from the funds on hold or pending. The reason for this is the funds on hold probably haven't completed processing..

All sellers are required by law to submit their social security numbers in order to sell and receive our funds.  

[dryophelia]

Since eBay doesn’t adjust for refunds, and the 1099 is based on what goes into that checking account, will cancelling and refunding accomplish what the OP is hoping for (no 1099). 

It is very possible I am misinformed. Can anyone help me be more informed?

[lacemaker3]

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@dryophelia wrote:

Since eBay doesn’t adjust for refunds, and the 1099 is based on what goes into that checking account, will cancelling and refunding accomplish what the OP is hoping for (no 1099). 

It is very possible I am misinformed. Can anyone help me be more informed?

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The IRS announced that they are delaying the $600 threshold again this year, so OP would probably not get a 1099-K whether they cancelled or not. The IRS also said they are planning to have a $5,000 threshold next year as a phase-in.

However, @pkb0251 probably would not get a payout without providing their SSN, so cancelling would mean that they don't have funds on hold that eBay won't payout.

[pkb0251]

UPDATE FOR ALL: I contacted eBay, filled out the required form to cancel the sale and refund the $ paid by the buyer (which was sitting in eBay limbo; hadn't been paid out to me yet), and the transaction was completed in a very short time.   I am retaining the item.   The buyer received their funds back.   And all is good. 

[kensgiftshop]

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@pkb0251 wrote:

UPDATE FOR ALL: I contacted eBay, filled out the required form to cancel the sale and refund the $ paid by the buyer (which was sitting in eBay limbo; hadn't been paid out to me yet), and the transaction was completed in a very short time.   I am retaining the item.   The buyer received their funds back.   And all is good. 

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You'll still need to provide your SSN if you're planning on selling here.