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1099 k threshold for 2025
I received an email from Ebay saying that the IRS has changed this years threshold from $2500 to $20,000. Was wondering if this is true? I heard that it was part of the Big Beautiful Bill.
22 comments
kh-tuna
·6 months agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
kchcollectibles
·6 months agoAs an accountant I'm shocked at the amount of bad advice in this thread. If you file your taxes based on what some random on the godforsaken eBay message board says you should pay you deserve to pay any extra tax you may incur. Seek an accountant. Follow their advice. Stop listening to message board know-it -alls. It's bad enough eBay won't spring for legit customer support and utilizes the efforts of people with too much time on their hands that want to tell you how you should be handling your business.
eagleeyethrift
·6 months agoAll income generated by your business' dealing inc. Scrap sales, yard sales, garage sales, estate sales. The 1099 amount before the internet was 400.00 yearly the person who paid you sent you a 1099 or you figured it out yourself. This applies to all business with you subcontract construction work or resell anything. The 1099 forms and requirements have changed over the years The BBB has nothing to do with income reporting guidelines. EVEN if you DON'T get a 1099 you still have to file for your taxes.
kensgiftshop
·1 year ago@wooly69
That just means Ebay doesn't have to issue a 1099K if you don't reach it.
It doesn't mean you don't have to report your income if you don't reach it,.
buyselljack2016
·1 year agoYou are back below the sweeping radar scan. You can resume selling😊
kensgiftshop
·1 year agoAll the tax dodgers will be back thinking they won't have to report their income.
estate_echoes
·1 year agoNot enough room with all the geniuses here who can't understand that selling off your used personal items at a loss is not an income to report without that 1099-K... and that this affects millions of law abiding sellers who do that.
The IRS lets you simply exclude these sales and errors with the same one line on a 1040 if you get a 1099-k. Why people are suggesting you need to report this without a 1099-k is beyond me.
kensgiftshop
·1 year agoMost of those sellers maybe sell a few items a year, which isn't a big deal.
Then you have some that sell thousands of dollars of new items that they just happen to have laying around and those are the problem ones.
They don't think they have to report their income because the didn't receive a 1099K and those are the ones they need to crack down on.
The way I look at it, I buy an item and get my use out of it, then decide to sell it, it's profit.
estate_echoes
·1 year agoSo how do you report it? If you are deducting the full purchase price that makes you the tax dodger.
Anyways what you chose to misbelieve is irrelevant to what the IRS says.
purchase1212
·6 months agoSelling price - PURCHASE PRICE (CoGS / cost of goods sold) = Profit (income)
The 1099 will be the selling (sold) price (which includes shipping)
You deduct your purchase prices and shipping costs and fees to get your income
kchcollectibles
·6 months agoYou can look at it anyway you want to and file your taxes as you wish but you are wrong.
Everyone should ask their accountant about cost basis for their specific situation.
I agree that the 1099K is not germane to whether or not you have to report the income. I totally disagree that it reporting it necessarily increases taxable income.
caldreamer
·1 year agoYes, it passed but this just means large corporations don't have to do massive about of 1099 bookkeeping but does NOT change your income tax reporting. IRS still requires you to report all income.
primeop
·6 months ago"Yes, it passed but this just means large corporations don't have to do massive about of 1099 bookkeeping but does NOT change your income tax reporting. IRS still requires you to report all income."
I don't think this is accurate. If it does not meet the reporting requirement, then you will not receive a 1099 K form, which would be required to report (Unless your state requires a lower amount, in which case you would receive a 1099 k).
jonathanbrightlight
·6 months agoA 1099-k is not require to report your income. You must report all income regardless of the form (unless you meet the very rare circumstances where you do not have enough total income to be require to file). There is no requirement that a form must be issued before you report the income.
primeop
·6 months agoI need to apologize to "caldreamer", I am wrong. It is a gray area that would be better to err on the side of caution, especially if you are planning on doing this for a few years. I did some research and you are still required to report all income even if you don't receive a 1099k. Lower amounts are less likely to become a problem for now. The amount that Ebay is talking about is just the amount that they are required to provide you with a 1099k. If you plan on doing this for a while, non-reporting could add up to a problem.
monroe67
·1 year ago"I received an email from Ebay saying that the IRS has changed this years threshold from $2500 to $20,000. Was wondering if this is true?" Yes, it is true.
There is also a minimum number of transactions: 200 separate transactions.
If your 2025 eBay sales do not meet both criteria (number of dollars and number of transactions), eBay will not be sending you a Form 1099-K.
"I heard that it was part of the Big Beautiful Bill." That is also true.
There are several other posts here in this Selling Community Forum that discuss this recent change.
You might be interested in reading them as well.
yot8587
·6 months agoI only did $1300. over 9 transactions and I got a 1099-K. I do not routinely file as my overall income is too low. What am I required to do?
jonathanbrightlight
·6 months agoIf you get a form like the 1099-K, generally you should file even if you wouldn't otherwise be required to (that's rare, though), and you simply won't owe anything. You should probably ask a tax professional, though. The trick is that if it's being reported to the IRS, and then you don't report those same numbers, that can flag it for them to pay attention to it.
purchase1212
·6 months agoI just got a 1099 - K for $3500 and 93 transactions
Thought I was below the threshold?
(I do declare the income with or without)
dryophelia
·6 months ago@purchase1212
There are some states that have a lower threshold. Check with your state.
acevintage029
·6 months agoI got a 1099-k same as you for $1400 in personal items I sold. I contacted eBay over a week ago and asked them to review and cancel the form as I did not have 200 sales for $20,000+ which is stated in the IRS documentation. Still haven't heard back from them. BUT I found this information on Turbotax.
I haven't started my taxes yet so don't know what else will appear that corresponds to the line item.
This line item appears at the top of 1040 tax return
For 2025, enter the amount reported to you on Form(s) 1099-K that was included in error or for personal items sold at a loss
jonathanbrightlight
·6 months agoFrom what I can see, you're located in New Jersey, and they appear to require a 1099-k to be sent if you have $1000 or more in sales, therefore you qualified. The form cannot and does not need to be "cancelled". You simply do your taxes correctly regardless of whether you have the form or not.