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Does eBay report total sales in a year to the IRS
Does eBay send a Form to the seller and to the IRS at the end of the year if sales exceed a certain amount?
7 comments
evry1nositswindy
Mentor2 years agoIt doesn't matter how much. I figure my own Schedule C, but have a tax professional check it and finish up our taxes. She never questions the small amount I report because it is the law--even though it is nowhere near the dollar amount for a form to be sent to me and the IRS.
damarsa96
OP2 years agoThanks for the information...I had been told it was $5000 for '24
lisa5768
Mentor2 years ago@damarsa96
The amount for 2024 is based on current law however like last year the IRS could change/delay the reporting amount anytime before the end of the year. There was some information about the IRS considering making it 5K for the year but there has not been an official policy yet. Remember you are required to report all sales (profit or loss) whether you receive a 1099 or not.
damarsa96
OP2 years agoDoes this just apply to business/professional sellers or also to private individuals/occasional sellers who might just go above $600 or whatever the limit is?
rock.star
·2 years agoThese rules apply to everyone.
lisa5768
Mentor2 years ago@damarsa96
All sellers will receive a 1099-K when they have gross sales over the limit. It does not mean you have to pay taxes on the entire amount as you get to deduct the cost of the item, shipping, eBay fees, etc. You can contact a tax accountant if you need help with your individual situation.
Read this information from IRS. It may help you understand how to report on-line sales.
https://www.irs.gov/pub/taxpros/fs-2023-06.pdf
lisa5768
Mentor2 years ago@damarsa96
eBay is required to follow the law and issue a 1099-K from to all sellers who meet the reporting threshold. The IRS amount may be higher than your state requires so it possible to have one sent to your state and not the IRS. Here is the information page about the 1099-K form.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794&st=3&pos=3&query=eBay%20and%20Form%201099-K&intent=1099&lucenceai=lucenceai&docId=HELP1463