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will not get a 1099 for 2025 if you do not meet the new threshold ... this is not true
1) Ebay stated that ONLY if you meet the new threshold ($20,000/200), you will receive a 1099, correct? So WHY did I get one anyway?
2) To add to the confusion, if it is still going to be reported to the IRS, do we still have to enter it as income or just ignore the amount on our 1040?
Both are very confusing.
MENTOR > Some clarity, please.
7 comments
monroe67
Mentor6 months ago"2) To add to the confusion, if it is still going to be reported to the IRS, do we still have to enter it as income or just ignore the amount on our 1040?"
It seems apparent from previous responses that you received a Form 1099-K from eBay because your gross sales on eBay met or exceeded the minimum reporting threshold set by your state, New Jersey.
New Jersey's minimum reporting threshold is lower than the national, federal, IRS reporting threshold.
That means that New Jersey required eBay to report your gross earnings to the New Jersey income taxation authority.
I could be mistaken but since you did not meet the current national minimums of $20,000 and 200 transactions, eBay may not be required to report your 2025 gross sales to the IRS.
That does not mean you should leave your eBay earnings off when you are preparing your federal income tax return Form 1040.
As a very general guideline (maybe "fact"?), the IRS expects all of us income taxpayers to list all of our gross income from all sources on our Form 1040 Income Tax Return, or the appropriate version.
"Both are very confusing.
MENTOR > Some clarity, please."
A number of eBay Community Mentors have tried to give you some clarity.
Everybody's income tax situation is a little bit different from everybody else's.
You will get your best advice from a professional tax preparer. You don't need to work with an expensive attorney or CPA. H&R Block has always done a great job for me, with my income taxes.
danilo1
OP6 months agoThanks,
This really stinks that each state's threshold varies so extremely since the IRS is a FEDERAL agency, which IMO should use the $20,000/200 model across the board.
mr_lincoln
Mentor6 months ago@danilo1
Sellers need to report the profit from their sales on their annual income tax return ... if you get a 1099K then include that in your tax returns. If not then just report your profits and pay tax on them and use deductions to help reduce your tax burden. Consult with a tax professional.
disneyshopper
Mentor6 months agoIf you scroll down to NEW JERSEY, you will see that the filing threshold is $1000
jacbarcollectibles
Mentor6 months agoYou are located in New Jersey which has a much lower limit for a 1099-K form. They require payment processors to send you a 1099-K when you meet the limit of $1,000 in transactions with no minimum number of transactions.
disneyshopper
Mentor6 months agoebay sales should always be reported on your 1040 federal return. You can offset that with deductions for selling costs: listing/selling fees, shipping supplies, postage, storage, internet, phone, etc.
Some states have a lower threshold for a 1099-K:
https://stripe.com/docs/connect/1099-K
danilo1
OP6 months agobut this totally negates that...using the same link you sent...
"For 1099-K forms, the IRS requires filing if, in a calendar year, the gross amount of total reportable payments exceeds $20,000 and there are more than 200 transactions."
https://docs.stripe.com/connect/1099-K