1099-K from ebay
why is ebay sending 1099-K forms when the total sales are far below the $20,000 threshhold? are they actually being sent to the IRS also?
30 comments
why is ebay sending 1099-K forms when the total sales are far below the $20,000 threshhold? are they actually being sent to the IRS also?
kibble-net
·8 months agoI would highly recommend nobody take any tax advice from this forum.
Hire a certified public accountant (CPA), it will be worth it to your business to obtain factual, accurate information rather than the amalgamation of "he said, she said" that you have to sift through here.
That is all.
jdbelt1960
·8 months agoNot sure if anything helped you. Bottom line is everyone's income is reported to the IRS no matter of how little.
stainlessenginecovers
·8 months ago@jdbelt1960 not sure why you would continue to voice false information over and over and over again.
1.) 1099K is a 'form' that is used by BOTH states and federal and is NOT just a 'federal form'
2.) Federal requires entities to issue a 1099k (processors) If sales are $20000 AND 200 transactions.
3.) Some States (yours included, requires $600 or more) have MUCH lower requirements for 1099-k to be issued by 3rd Party Payment Entities, some as low as $600.
The LIST of STATES requiring a MUCH LOWER AMOUNT that the Federal, has been shown numerous times in this thread.
bbcardzman
·8 months agoBecause the threshold is now $800
albertabrightalberta
·8 months ago@66boston
Massachusetts residents have been getting 1099s for $600+ since 2017.
But even without a 1099K, you're required to claim your income!
And yes, the IRS is made aware also.
ETA: Just your sold items currently showing is at $581 and that's not including shipping and sales tax so you're well over the $600 Mass. threshhold for 2025 (just for the last 2 months) and that doesn't take into account your income from January through October 2025.
golfingaddict
·8 months agoMaryland $600
kensgiftshop
·8 months ago@66boston
Looks like your state is $600 and yes, it's also sent to the IRS.
jdbelt1960
·8 months agoI received a 1099 which is a federal (not state) form and am way below 20K in earnings. As I mentioned this is a federal requirement, not state. Any money over $600 requires reporting to the federal government regardless where you live.
albertabrightalberta
·8 months agoNot quite correct - any money over 1 cent requires reporting to the federal government even when there's no 1099K form.
Sellers need to understand that they won't necessarily owe more taxes but they have to report! And if they keep good records, there are deductions they can take to offset the income.
dhbookds
·8 months agoJd.......there are different types of 1099's
A 1099 form is an IRS tax document used to report non-salary income, typically issued by businesses to independent contractors, freelancers, or for other income types (rent, interest) over$600.
. It serves to report income to the IRS that is not subject to W-2 withholding, with key types being 1099-NEC (contractor pay) and 1099-MISC (miscellaneous income).
Types of 1099 Forms:
The one FOR EBAY has the 20,000/200 requirement...........
kensgiftshop
·8 months agoYes, it's federal, but some states have their own threshold, which overrides the federal level.
I think a 1099K should be sent if you earn anything, no matter the amount.
You're supposed to report all income so receiving a 1099K shouldn't be a problem.
jdbelt1960
·8 months agoI read yesterday that the new threshold for reporting is $600. These are new IRS guidelines.
shire123
·8 months agoThe 600 threshold is for 2026 sales ??
jdbelt1960
·8 months agoThis is for 2025 sales as you will do 2026 sales next year. Short answer is yes.
golfingaddict
·8 months agoCheck your news source. That is incorrect information.
Or better yet, read the IRS bulletin on the 1099-K
Understanding your Form 1099-K | Internal Revenue Service
Reporting threshold
Third party settlement organizations (TPSOs) (payment apps and online marketplaces) are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds $20,000 in more than 200 transactions. You may receive a Form 1099-K even when total payments or transactions are less than the reporting threshold. No matter the amount of reported payments, if you receive payments for selling goods or services you must report all income on your tax return.
Reminder: Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide.
shire123
·8 months ago(golfingaddict you know this but I am pointing it out to others) Note that the REPORTING THRESHOLD applies to ENTITIES like ebay. Not individuals. And that reporting threshold is required but does not limit the entity from reporting for values less than 20,000.
jdbelt1960
·8 months agoThe threshold for 1099-K reporting to the federal government is $600. I understand the confusion but this has been recently changed. I stand by what I say.
golfingaddict
·8 months ago1099-K threshold reverts to prior level
We’re excited to share that the Form 1099-K reporting threshold has been restored to its prior level of $20,000 and 200 transactions, effective now.
What does this mean for you?
Fewer sellers will be subject to 1099-K reporting, reducing confusion and the hassle of unnecessary paperwork in the future.
You’ll only receive a Form 1099-K for 2025 if you meet any of the following criteria:
Please note that you’re responsible for reporting any taxable income to the IRS. To learn more about Form 1099-K, reporting thresholds, and what it includes, visit our Help page. For any questions about your specific situation, please consult a tax advisor.
As always, thanks for being part of the eBay community.
dhbookds
·8 months ago@jdbelt1960 you're wrong, as said.........
2025 and later years Form 1099-K thresholds
The One Big Beautiful Bill Act (OBBA) reverted the 1099-K reporting thresholds to the previous $20,000 in payments and a 200 transaction minimum. The lower $2,500 and $600 thresholds are no longer in effect for 2025 and 2026.
https://blog.taxact.com/1099-k-reporting-thresholds-for-ebay-sellers/
jdbelt1960
·8 months agoI received a 1099 at $1700 for the year. A 1099 is a federal form. This is the amount reported to the federal IRS. That means this amount is reported to the FEDERAL IRS. Not sure why people are against me as they look at their 1099 forms with low amounts.
kensgiftshop
·8 months agodhbookds
·8 months agoThe discussion is about 1099 for Ebay sales..........The 1099's you are referring to are NOT from ebay...correct?
fern*wood
·8 months agoWe aren't doubting you received a 1099K. Did you read post #2 above. Some states (including yours) have a lower threshold to require payment processors to submit them.
It's pretty ridiculous to keep debating a threshold that doesn't apply to us as sellers. It would only apply if you were the one required to provide the form.
monroe67
·8 months ago"I received a 1099 at $1700 for the year."
OK. But there were probably a letter or two following those numbers, 1, 0, 9, and 9.
What type of 1099 did you receive that showed you had $1700 in income for the year? (Assumed to be 2025.)
In message 20 above, dhbookds listed four types of Forms 1099 that are not a Form 1099-K.
I think there may be other types as well.
All that said, I almost admire your misplaced self-confidence in the face of proof that you are mistaken.
jonathanbrightlight
·8 months agoThey're not mistaken about receiving a 1099K from eBay for their sales on eBay, they're just mistaken about the reason. @jdbelt1960 is located in Maryland, according to their listings at least, and Maryland has a threshold of $600.
JD, it is a Federal form, but individual States are allowed to specify a lower threshold at which that Federal form must be sent to residents of their State. That was posted by @golfingaddict in the second post in this same thread: https://community.ebay.com/t5/Selling/1099-K-from-ebay/m-p/35461634/highlight/true#M2660592
12345jamesstamps
·8 months agoPerhaps go to a tax-accountant and have your taxes done for maybe the first time...
I think the problem here might be you do your own taxes.
I always go to a tax-accountant...which of course that is their job at what they do best.
soh.maryl
·8 months ago1. It's probably easier for eBay to just send everyone the 1099 instead of sorting out over 20K from under 20K in sales.
2. Don't we all have to report all of our income, not just eBay? For example, if I only sold $2,000 on eBay, but have other income of perhaps $18K, aren't I required to report all of it?
shire123
·8 months agoIt really shouldn't matter as we are all supposed to report ALL income from ebay sales. The 20,000 limit applies to company requirements for generating 1099k forms. It is NOT that sellers do not have to report income under 20,000.
But as I understand things there are states with lower limits so I guess ebay just figures it's better to generate the forms for all income:?
golfingaddict
·8 months agoWhere are you located? Some states require a 1099-K for less than the Federal threshold.
jdbelt1960
·8 months agoThe threshold for IRS reporting is not at the state level but a federal government requirement. It is $600 nationwide. Yes different states may have different limits for state taxes.