1099 for Ebay sales

[life_over_shoes510]

Hi!

i just started selling more on Ebay and wanted to confirm what the sales threshold are before they send me a 1099.

Will they send me one as soon as I make more than $20,000 in sales (any amount of transaction) or do I need to make both $20,000 and 200 transactions first?

thanks in advance!!

[coastaltechsolution]

For this tax season either or both 

BUT that is just to get a 1099, you still need to keep track of income and claim on taxes even if you fall below that threshold 

[nobody*s_perfect · Accepted solution]

It's $20K AND 200 transactions. But that threshold is only through 2021.  Starting with 2022, the threshold will be $600. Many states have already set that level as a requirement for reporting on state income tax.

Those are the thresholds above which payment processors (such as PayPal or eBay/Adyen) are obligated tp send you a 1099-K.  You are supposed to report all income even if you are below the threshold(s). for getting a 1099-K.

[redmodelt]

Lot depends on what the state you live in is currently, some states are already much less. Oregon, for example, has been at $600 for a long time. In 2022 the $600 level comes into play for all states, there some question if that will be for sales in 2021 or starting Jan of 2022. On the Federal level, any sales are taxable, does not matter what $ amount the 1099 is set at. You would need to check your state tax code to find out what part is taxable.

[life_over_shoes510]

Just confirm i got that correctly;

Even if I were to make over $20,000 in sales, but with less than 200 transactions, they still won’t send me a 1099 until I get atleast 200 transactions as well? (This is with the current threshold).

Thanks again!

[kensgiftshop]

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@life_over_shoes510 wrote:

Just confirm i got that correctly;

Even if I were to make over $20,000 in sales, but with less than 200 transactions, they still won’t send me a 1099 until I get atleast 200 transactions as well? (This is with the current threshold).

Thanks again!

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You need to check with your state, some of them are lower.

[janenjeff]

It's going to be a big headache because Paypal and Ebay are each issuing 1099s for transactions, which means that there will be lots of duplicate transactions between the 2 that will be our responsibility to identify; otherwise the IRS will count them separately.  You will have much more income reported than you actually received.

[nobody*s_perfect]

No, PayPal and eBay/Adyen will each report only the funds that they processed.  No transaction will be reported by both of them.