Sold item just under $600
Why am I having to fill out a 1099 when I sold an item under $600? After shipping costs and eBay taking their cut it will not be over the $600 threshold. The $600 threshold is only being created with the overhead which was not a part of the sale, it was taxes.
3 comments
buyselljack2016
·2 years agoHave read that the providing of information is not a "set in stone" requirement at $600. eBay (and others) can request it at any amount.
eBay will err on the side of caution to require that information with the looming possibility that you could sell another $8 or so worth of merchandise at which point eBay would be scrambling to attempt to get you to provide the information so that they cold, as required by law, issue a 1099-K
If they give you your present earnings and were to sell something for $8 there would be no incentive for you to comply for the pittance that would remain after fees.
eBay is attempting to keep eBay in compliance with the possibility out there that they may have to issue that 1099.
Makes no never mind anyway. Nothing has changed except when the 1099 is sent.
stainlessenginecovers
·2 years agoYou are NOT filling out a 1099; that is the form that you and the IRS will receive early next year.
Why are you being asked info?
Because when someone sells something for $596 shipping; the system believes you may 'list and sell' something else, putting you OVER that $600.
IF you do NOT exceed that $600 (shipping IS included; Sales Tax a buyer pays is NOT included) then you will NOT recieive a 1099 next year.
But, because you 'started' selling things and pushed that envelope, this site (and any site) will be asking for all your SS info 'in case' you DO exceed $600.
simba6
·2 years agoIt covers the gross not net amount of your sales. You have to break it down on the tax form. Be sure to keep all paperwork in case of an audit.