eBay

nederlander1 · ‎11-15-2023

I think I posted this on the wrong forum so I'll try here.

I sold four items this year. Total gross sale prices plus shipping came to $575. Imagine my surprise when eBay states I had just gone over the $600 threshold (611), will be issuing a 2023 1099-K and they need a ssn before releasing the last item payment.

With only four items sold this year it wasn't hard to check the math. With the buyers sales taxes added in it came up to exactly the figure given, $611. Ebay definitely included the buyers sales taxes.

This is directly contradictory to their stated policy on the 1099-K FAQs page - "Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay."

My recent experience proves otherwise. It was included. Oh, I'll fill out the tax form on it. No big deal as these were personal items sold at a loss. And in addition to shipping and fees, I'll be including those buyers sales taxes as deductions. So, for sellers here, have you had this happen to you in past years?

lacemaker3 · ‎11-15-2023

@nederlander1,

eBay usually asks for your SSN (and holds funds) before you actually reach the $600 limit, because if you go over the limit, then they have to have the SSN to issue the 1099-K, or they will be breaking the rules. The rules say that if they don't have an SSN, then they have to withhold income tax from your payouts, and eBay doesn't do that. So they can't permit you to go over the $600 limit unless they have your SSN.

The 30-day or 90-day totals on eBay do include the sales tax (they have always shown the sum of the buyers' total payments), but sales tax is not included when they calculate the total for the 1099-K.

Based on your reported totals, you probably will not receive a 1099-K for this year, unless you sell something else for $25 or more. But, you will have to provide your SSN in order to release the hold on the last payment.

nederlander1 · ‎11-15-2023

Thanks for your info. I got on my account, gave the ssn and received payment. I don't plan on selling anything else before the end of the year. Yet, I only got the ssn request after they sent an email reporting I had gone over the $600 threshold and that I would be receiving a 2023 1099-K. The buyers sales tax was definitely included on tabulating the overage. Just have to wait and see if I get anything by Jan, 31, 2024.

I've been on the Bay for nearly 26 years, mostly buying, this may be the first glitch. If so, and I get that 1099-K, I'll just deduct the buyers sales tax along with fees, shipping on my taxes. We'll see.

nobody*s_perfect · ‎11-15-2023

I wonder whether this error happens only in the part of their system which triggers the ssn request, but not in the part of the system that actually generates the 1099-K. Come back in February and let us know!

deltilogical · ‎11-15-2023

Boy we sure made a mistake voting for income tax. Oh wait, the citizens never did.

luckythewinner · ‎11-15-2023

@nederlander1 wrote:
I sold four items this year. Total gross sale prices plus shipping came to $575. Imagine my surprise when eBay states I had just gone over the $600 threshold (611), will be issuing a 2023 1099-K and they need a ssn before releasing the last item payment.

With only four items sold this year it wasn't hard to check the math. With the buyers sales taxes added in it came up to exactly the figure given, $611. Ebay definitely included the buyers sales taxes.

This is directly contradictory to their stated policy on the 1099-K FAQs page - "Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay."

This has nothing to do with eBay including sales tax or not.

eBay will ask for your taxpayer ID number BEFORE you reach $600.

Because if you reach $600 first and refuse to give your taxpayer ID number, that puts eBay in violation of IRS rules.

eBay asks for your SSN because they *expect* you to sell more. eBay employees explicitly confirmed this in responses on this board.