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1099 Tax form questions
Summary: jacobfarms2001 is seeking guidance regarding the 1099 tax form for their eBay sales, as they consider themselves a hobbyist seller with around $20,000 in total sales over two years. jacbarcollectibles and monroe67 explain the criteria for eBay to issue a 1099-K form and suggest consulting a tax preparer for deductions. monroe67 clarifies that eBay sends the form based on both federal and state requirements. jacobfarms2001 expresses gratitude for the advice and mentions searching for a new tax preparer for further assistance.
Hey guys ive never been on this chat before but I have been trying to research and find information about getting a 1099 tax form for my Ebay account. I do not have a business acount, I guess I would just be considered a hobbiest seller. My account says I have listed/sold just a little over 20k and im assumning thats the total of my entire selling history over the past two years? I know I havnt sold 20K worth of items this year alone I do know that. Should I wait for ebay to send me a 1099 or do it myself, and will I be able to make any dedductions? I mainly sell car parts that I have left over from working on vehicles at my job. Would there be a certain point where i should change my account to where it could be handled more as an business or just keep selling as a hobbiest?
Thanks so much for any help on this matter- Isaac Jacob
monroe67
Mentor3 weeks ago · Edited"Should I wait for ebay to send me a 1099 or do it myself, . . ."
As "jacbar" stated, there is very little difference between "regular" and "business" accounts on ebay.com, the USA site.
eBay is required to send Form 1099-K to USA sellers (and the IRS) who meet both of these federal, IRS, minimum requirements (criteria) during the calendar year:
A. Number of Dollars of Gross Earnings: Twenty Thousand Dollars ($20,000.00)
AND
B. Number of Transactions: Two Hundred (200).
BOTH criteria must be met. If you had $25,000 in gross earnings from eBay but that total was from "only", say, 198 transactions, eBay will not be required to issue a Form 1099-K.
However: You might live in a state that has lower minimum requirements for Form 1099-K, some as low as $600 gross earnings and only one transaction. If your state is one of those, and you meet your state's lower requirements, eBay will issue Form 1099-K and send it to you, your state's income tax department, and the IRS.
". . . and will I be able to make any dedductions?"
That's a question that neither eBay, Inc., nor any of the Community Mentors can answer for you. You'll need to talk with your own income tax preparer.
In general, the IRS expects all of us who receive income to prepare and submit an income tax return (Form 1040 or appropriate version) and to pay income tax on our taxable income. Whether we receive a Form 1099-K from eBay or not.
There are lots and LOTS of exceptions that could apply to you. Your tax preparer is best situated to give you the best advice.
jacobfarms2001
OP2 weeks agoSorry for the late reply but thank you soo much for the helpful information! I am currently looking for a new tax preparer currently so hopefully they will be able to help me out.
jacbarcollectibles
Mentor3 weeks agoOn the eBay USA site there is very little difference between a regular account and a business account. Both account types are subject to the 1099-K requirements. You would need to file a Schedule C with your tax return to take the appropriate deductions from the income you are earning on eBay.
jacobfarms2001
OP2 weeks agoSorry for the late reply but thank you so much for the information! I will write schedule C down in my notes to mention to my tax preparer.