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2024's 1099k....is that $5,000. limit on Net Sales or Total Sales?
2024's 1099k....is that $5,000. limit on Net Sales or Total Sales? Does anyone know? I'm at $4,960 net sales and jsut over $4,000. total sales...which number kicks in the 1099K distribution for 2024? As it stands now...I'm assuming total sales so I'm going to unlist all my items until next year.
5 comments
wooden_flower
Mentor2 years ago@srhfc
The law is $600 gross receipts. The IRS has indicated that they expect to use $5,000 gross receipts as the 2024 threshold, but have not made it official yet. Gross receipts = item + shipping, not reduced for refunds or fees.
1099k or not, you are required by law to report your sales if you made a profit, and pay tax on that profit.
srhfc
OP2 years agoThank you...no profits were made...small losses on the entire lot...i'd rather not get a 1099k if it is 5k reporting...so i'm going to stop now...under 5k gross.
wooden_flower
Mentor2 years ago@srhfc
If there was no profit, the 1099k is easy to deal with - the amount in as other additions, then the same out out as other deductions. You do need to create a record of the loss, just in case 🙂
srhfc
OP2 years agoI agree 1099K is easy and nothing to fear...it's just i will start in 2025. My taxes are hard enough, less paperwork...i do them alone.
rfmtm
Mentor2 years agoEven if you do not receive a 1099, or owe any taxes, you still must account for the income processed. The IRS as well as your state can still request this information from ebay with or without a 1099.