mam98031 • Volunteer Community Member • Buyer/Seller since 1999
The $20,000 is a threshold for receiving 1099Ks for tax purposes. But that isn't a threshold for when you have to claim your sales here as income on your tax reports. Every transaction on Ebay is a business transaction and it needs to be represented on your income tax reported to the IRS every year.
MP has sellers in it from all walks of life and all kinds of sizes as Ebay is set up like this too.
MP does not function like PP, nor is it likely to even in the future. So that is now behind us and we must move forward with MP if we want to sell on this site.
In MP you have a choice of Daily Deposits [poorly labeled] or weekly deposits [on Tuesdays]. MP processes and transfers ONLY on Business days. It takes them approximately 1-2 business days to process a pending payment and then your Available transfer is done on the next available business day or on the next Tuesday depending on what type of deposit you have your account set up for.
I know this process can and is very difficult on some sellers that operate on a zero cash flow. At this time it is how the program functions and it is what we all have to deal with. Hopefully sooner rather than later the MP process will see some improvements. But for now this is what we have to deal with and I'm very sorry this is having such a negative impact on you. I hope that eases VERY soon. 😍
@rebell45 wrote:I'm afraid that if you want to continue to sell on eBay, you have to use their MP system. It will kill off a lot of small and part-time sellers that don't want the hassle of setting up a new checking account and then waiting days for payouts. Of course eBay has been trying to get rid of the little guys for years. They seem to forget that these little guys buy here too. With many, the money they get selling here is turned around and spent here too.
Oh, well, I'll stay until they figure out how to hook the "Restricted Items" sellers, then I'll be done.
Well that can and is likely for other reasons. I agree that some casual sellers and even some small sellers may truly hate this change into MP but not because of what some are complaining about on the threads, but because they don't want their money going into a bank account. It is easier for hide this income from IRS in a PP account. And that likely has a great deal to do with some of these objections to being forced to use a bank account.
So it is highly likely that some of these objections to the process are not quite truthful or complete.
@fun-snowbunny wrote:My question is: PayPal was the one receiving the money first. So, does that mean if I got close to the $20,000 on PayPal, will it start over with Ebay Managed Payments? I cannot go over the $20,000 threshold and I'm $1,400 away from it currently. Does this mean I can list freely now, get paid with managed payments and start over at $0 with managed payments?
The short answer is YES. They are two separate companies, so they are responsible to reporting to the IRS separately. MP will report for the money they process and PP will report for the money they process. None of it will be comingled.
Listing freely, well yes as you have always been able to do. But if you are only reporting your income from internet sales when you receive a 1099K, that would be incorrect. You are responsible for reporting ALL your income from internet sales whether you earn $500 or $50,000.
Keep in mind if you are pulling Social Security or some other form of state or federal income, you are still responsible for claiming ALL your internet sales income less expenses. If you haven't been doing that, that is wrong and you are risking getting in trouble for that. It is your responsibility to report your income accurately.
@fun-snowbunny wrote:Than you very much for the information. And it's a no on Social Security. I'm many years away from that.
Thanks for your reply! Very helpful!
Just make sure you understand that because you may not qualify for a 1099K does not relieve you of the legal responsibility to report your income. IRS no longer has a minimum threshold for this. So track your sales and your expenses so you can properly file your income taxes.
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