200 transactions

[winomore]

Hi, I cannot get a clear answer for this for myself. 

IF, I were to sell 125 items for $25,000 on Ebay in 2023, I will probably get a 1099-K.

I will include it as income when I do my Taxes. Just curious if the 125 transactions I made puts me under the threshold of $20,000 and 200 transactions or not. 

Thanks

[kensgiftshop]

That's just to get a 1099K.

You still have to report your income.

[ckimodog]

@winomore 

  The best thing you can do is consult a tax attorney or preparer in your area.  They would know.  Congrats to you concerning all your great sales! Nice to read someone is making money here.

Happy Selling

[jameshen1]

You should be asking an income tax professional this question.  Not strangers on a community board.

[4pawsup*]

I have no idea why you chose the numbers you did but. Get a professional to do that.

[toomuchstuffagain35]

The point when a 1099K has to be issued (right now) is for over $20,000 AND (not or) 200 transactions, so no, if you made over $20k in sales but didn't reach 200 transactions you would not get a 1099k (unless your state has a lower threshold for the form).

[buyselljack2016]

---

@toomuchstuffagain35 wrote:

The point when a 1099K has to be issued (right now) is for over $20,000 AND (not or) 200 transactions, so no, if you made over $20k in sales but didn't reach 200 transactions you would not get a 1099k (unless your state has a lower threshold for the form).

---

To clarify that a bit.

Those are the requirements, that if met, trigger the mandatory issuance of a 1099-K.

Not likely that one would be sent otherwise, but it could happen, as again that is the trigger for the mandatory issuance.  I do not believe that there is any "law" stopping one from  being issued for a lesser amount.

[nobody*s_perfect · Accepted solution]

---

@winomore wrote: ... curious if the 125 transactions I made puts me under the threshold of $20,000 and 200 transactions or not. ...

---

You will not receive a 1099-K if you had fewer than 200 transactions in 2023, unless you live in one of the states that has set thresholds which are lower than the federal level.

As noted in an IRS statement issued earlier this week (emphasis added): "reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023."

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

[nobody*s_perfect]

---

@ckimodog wrote: ...  The best thing you can do is consult a tax attorney or preparer in your area. ...

---

Basic information like this is readily available from reliable sources online such as the IRS itself.

[nobody*s_perfect]

---

@jameshen1 wrote:

You should be asking an income tax professional this question.  Not strangers on a community board.

---

Strangers on a community board can direct the poster to reliable resources such as IRS announcements and publications.

[dnasilver]

The IRS guidance is a 1099 is not required but it does not mean one is not issued. It is up to the person/company to decided it they will or not. 

[nobody*s_perfect]

Do you have any evidence that any company has ever issued a 1099-K when the thresholds were not met?

[dbfolks166mt]

     The following is from the IRS publication. Logically you would have to meet both the $20K and the 200 items to get a 1099 but as noted they can send you a 1099 with lower amounts. I am actually surprised there is even a transaction number IRS is generally focused on the money. You can also call the IRS at 800-829-1040.

If you used a payment app or online marketplace and received over $20,000 from over 200 transactions

A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 from over 200 transactions. However, they can send you a Form 1099-K with lower amounts. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.

[camino-71]

What if you sold  like 500 small items on eBay  in 2023 but only had sales of around 15,000 would you then get a 1099K because you sold more than 200 items but we’re under the 20,000 in sales.

[nobody*s_perfect]

The federal thresholds are $20K AND 200 transactions.  So if your total of item prices plus shipping was below that amount you would not get a 1099-K.

However, if you live in one of the several states which have set lower thresholds, then you will get a 1099-K if you meet the state threshold.  For  Maryland,  it's $600.