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Was I Mistakenly Sent a 1099-K?
Hello,
I received a 1099-K form from eBay some time ago and am looking for some clarification on why I recieved it and what I am required to do with it.
My understanding of the way taxes work when it comes to online marketplaces such as eBay is that I shouldn't be dealing with something like this unless I've made over $20,000 in sales or 200 transactions on the platform in the span of a calendar year. Meanwhile, I hadn't even made a tenth of the IRS minimum reporting thresholds (only about $1,800 net total earnings) and certainly have made nowhere near 200 sales over the course of 2023. I have many friends in the United States who make exponentially more money than me in eBay sales yearly, but none of them have ever recieved any kind of income or tax forms like the 1099-K I recieved.
I have done all the independent research I possibly can on this, including the eBay customer service article regarding Form 1099-K (https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794), but everything I've read only confirms why I should not have recieved a 1099-K or any of the obligations that come with it.
I'll provide some additional information on my eBay activity and 1099-K information: I Iive in New Jersey and only started selling on eBay in August of 2023, and my 1099-K clearly states that I've only had 28 payment transactions in 2023, totaling a gross of $1,790.15. I also have been selling on Mercari since 2020, and despite Mercari being an identical e-commerce site that follows the same federal tax laws as eBay, I have never once recieved any kind of income or tax forms from them.
It seems clear to me that I should not have received a 1099-K form from eBay. Unless I can get an in-depth explanation as to why I should have recieved a 1099-K despite not meeting or exceeding the minimum IRS/state reporting threshold in the previous calendar year, can I be directed to someone who can fix this issue?
lady_madonna
Mentor2 years ago@njcollector03
According to your state law, the threshold for receiving a 1099K is $1,000.
an-57470
·2 years ago@njcollector03
All profits from sales (stressing here profits) must be reported whether or not a 1099 is received.