W-2's

[pum2159]

Will ebay send my a W-2 for tax purposes?

[nobody*s_perfect]

You'd get a W-2 from eBay only if you are an eBay employee.  

If you are an eBay seller, then eBay provides a form 1099-K if your sales passed the minimum thresholds at either the federal level or at your state's level if that's lower. The 1099-K's were available in late January.

[hartungcards]

Only if you're employed by eBay.

[pum2159]

What do I do if I did not receive a 1099?

[duffy4444]

eBay only sends W2s to their employees. You will not receive one unless you are an eBay employee.

[tobaccocardyahoo]

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@pum2159 wrote:

What do I do if I did not receive a 1099?

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You go to the records you have been keeping, and enter your sales on a Form 1044 Schedule C, you calculate your cost of goods sold and gross profit margin, you deduct your expenses, and you pay your income tax, social security tax and medicare tax on your business income.

[monica-sells · Accepted solution]

add up what you sold (item + shipping)

subtract selling fees

subtract shipping

subtract all eligible expenses

put what's left (taxable income) on your 1040

[duffy4444]

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@pum2159 wrote:

What do I do if I did not receive a 1099?

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@pum2159:
  

    Even if you didn't receive a 1099-K, by law you are still required to declare your online gross sales LESS GENEROUS EXPENSES, on your taxes. This has always been the case. The very reason why online sales are getting so much IRS and Congressional attention lately is to enforce that requirement that has been on the books all along.

   Be smart. Get into compliance, regardless of how much online income you have received. The wise online sellers have been doing that for years anyway, even without a 1099-K.

Cheers, Duffy

[pum2159]

Yes I am going to turn in my ebay sales, just curious why some people get a 1099 and some don't? My gross sales for 2023 were around 9,000

[caldreamer]

You are not an employee of EBAY (so you won't get W-2).   Whether or not EBAY will send you 1099 depends on your state's requirements.  IRS requires you to report all sales (even if you don't get 1099). 

 EBAY has "easy to read" 1-page report that shows YTD totals for (gross sales/order, refunds, EBAY fees, shipping expense).    IRS requires that you report "gross sales" (and then deduct refunds, EBAY fees, shipping expense) plus other expenses (cost of goods, mileage, packing materials, office supplies, etc).   You pay income tax on "net amount" after all business expenses have been deducted.

To print EBAY report go to Payments, Reports, REPORTS (NEW) and select LAST YEAR.

[pum2159]

Thank you so much. This is great and very helpful information.

[toomuchstuffagain35]

Unless you're in a state which has a threshold lower than the federal one the criteria for a 1099K in 2023 was 20,000 in sales AND over 200 transactions.

[nobody*s_perfect]

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@pum2159 wrote:

Yes I am going to turn in my ebay sales, just curious why some people get a 1099 and some don't? My gross sales for 2023 were around 9,000

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The federal threshold is $20,000 and Indiana is not one of the states that have set a lower threshold.

Take a look at IRS Schedule C and its instructions to get a better idea of how the IRS sees this, and what your deductible expenses would be (eBay fees, postage, etc.).