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Will a 1099-k be issued based on the earnings which is below 20k or the gross sales which is >20K?
I am trying to decide if I should pause selling things for a couple months. My earnings are less than 20k but my gross sales exceeds 20K. If i pause will I receive a 1099-k? If so then there is no reason for me to pause at this time as I will have to work wit the 1099-k either way. any input would be appreciated.
2 comments
monroe67
Mentor10 months ago"I am trying to decide if I should pause selling things for a couple months. My earnings are less than 20k but my gross sales exceeds 20K. If i pause will I receive a 1099-k? If so then there is no reason for me to pause at this time as I will have to work wit the 1099-k either way. any input would be appreciated."
eBay is now required to issue sellers -- and the IRS -- a Form 1099-K when both these criteria are met:
1. Number of Dollars: $20,000 in gross sales (includes item and shipping prices) and
2. Number of Transactions: 200 transactions.
Some states have 1099-K requirements that are lower dollar amounts and lower numbers of transactions.
If you live in one of those states, eBay will follow your state laws and issue a Form 1099-K.
It is crucial to note that the absence of Form 1099-K does not necessarily or automatically mean you have no income tax liability (either federal or state) on your eBay earnings. The best advice is to work with a professional tax preparer.
jacbarcollectibles
Mentor10 months agoThe requirements to receive a 1099 for 2025 are at least $20,000 in gross sales and 200 transactions. Both of these requirements must be met to receive a 1099. This of course does not remove the requirement to claim you eBay income even if it does not meet the 1099 requirements. The IRS does have ways to determine your income even without the 1099. A number of sellers have found this out to their detriment.