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1099K
Why did eBay issue 1099K's When back in August in the sellers news the government was reverting back to previous limits $20,000. or 200 Transactions
2 comments
monroe67
Mentor7 months ago"Why did eBay issue 1099K's . . . ."
Because "the government" required eBay to issue Form 1099-K to sellers whose sales met the "government" minimum/thresholds.
The federal -- national -- government (Internal Revenue Service (IRS)) thresholds are twofold:
1. Number of dollars of gross sales: Twenty Thousand ($20,000) and (not "or")
2. Number of sales: Two Hundred (200).
There actually are eBay sellers whose gross sales exceed those IRS thresholds.
In addition to the federal -- national -- government, there are 50 state governments.
Each of those 50 state governments is allowed to set their own minimum thresholds for payors (such as eBay) to issue Form 1099-K. The District of Columbia and at least 10 other states that I know of have lower minimums, some as low as $600.00.
If you received a Form 1099-K reporting an amount that is lower than $20,000.00, it is because your state required eBay to issue it.
golfingaddict
Mentor7 months agoThere are many states that have a lower threshold.
Where are you located? Some states require a 1099-K for less than the Federal threshold.
THere are a few others, check with your state. You need to claim your income for selling on eBay. Check with a tax professional.