What is the criteria for a seller to report tax? 1099-K

Question

I am aware of the state sales tax that is due on sold items, but in the past eBay collected and sent the money to my state. Last year, I did not collect any sales tax as I thought it was all collected by eBay. I sell very few items (15 last year) and was expecting the sales tax to be handled by eBay, as I did not receive the money from the buyers. To my knowledge, I was never made aware eBay was NOT sending the $ to my State. I have tried contacting an agent, but can't seem to get around the Cha...

monroe67 · Answer

Your post's title is: " What is the criteria for a seller to report tax? 1099-K" And the body of your post is about sales taxes. Sales taxes have absolutely nothing to do with Form 1099-K . Form 1099-K is a report from eBay to the IRS telling the IRS how much money you earned from selling on eBay. eBay's minimum 1099-K reporting requirements for 2025 are $20,000 and at least 200 transactions. Sales taxes paid by your eBay buyers are not included in the amount eBay reports on Form 1099-K. The point of the 1099-K is to let the IRS know how much your eBay gross earnings (income from eBay) were, which relates, obviously, to how much income tax you might need to pay to the IRS on those earnings. Gross earnings reported on Form 1099-K include item prices your buyers paid plus shipping prices that your buyers paid. All that said, some individual states require Form 1099-K when your eBay earnings are a smaller dollar amount. For example, Massachusetts requires Form 1099-K when a Massachusetts resident eBay seller earns at least $600.00 from eBay sales. Other states might not need/want a Form 1099-K on you unless you have at least $1,000 in gross earnings from eBay. About sales taxes: Yes, eBay does remit sales taxes to the states where items are delivered. eBay buyers pay those sales taxes. eBay collects those sales taxes at the sales tax rates in effect at the zip code in the delivery addresses. However -- from reading these forums, I have learned that a few states apparently require eBay sellers to send reports to their home states, which reflect how much sales taxes they collected on sales with delivery addresses within that state. If that applies in your state, I think you would probably get your best advice from a professional tax preparer. I've always had good results with H&R Block.

comics-scifi-collectibles · Answer

@leavingthebuilding Do not confuse sales tax and income tax.

eBay does collect and remit sales tax to the buyers state that purchased your items.

You do pay income taxes on your PROFITS even if you do not get a 1099K

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794&st=3&pos=2&query=eBay%20and%20Form%201099-K&intent=eBay%201099k&lucenceai=lucenceai&docId=HELP1463