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2023 Ebay tax rules ?????
Hello,
I have heard different stories....
Is Ebay using the 200 items AND $20,000 this year ???
or
Are they using that crazy $600 rule ???
THAKS in ADVANCE !!!!
FrugalFlower
6 comments
comics-scifi-collectibles
Mentor2 years ago@frugalflower57 They are not "eBay's tax rules" they are the federal government rules. So this year it's 20k UNLESS your state has a lower limit required for 1099k. Right now the Feds are saying 5k for next year.
This doesn't mean that you are not still required to pay taxes on PROFITS. The same goes if you get a 1099K you only pay taxes on the PROFITS.
You can read the IRS rules here>>
https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-party-platform-payments-plans-for-a-5000-threshold-in-2024-to-phase-in-implementation#:~:text=This%20means%20that%20for%202023,to%20phase%20in%20reporting%20requirements
frugalflower57
OP2 years agoTHANK YOU !!!
shipscript
·2 years agoWe're waiting on official word, but if history is any indication, eBay will fall back to the $20K rule for states that don't have lower thresholds. Keep in mind that eBay has fought for elimination of the $600 rule.
frugalflower57
OP2 years agoTHANK YOU !!
wooden_flower
Mentor2 years agoWe are all waiting for the announcement. The IRS has delayed the $600 threshold again, so now we are waiting for eBay to announce if they will revert to the $20,000 - we assume they will but it isn’t fact until they say it.
As always, the 1099k is just a reporting tool - any profit you make from your sales is taxable.
frugalflower57
OP2 years agoTHANK YOU !!