1099K for tax year 2026

Summary: The discussion revolves around the changes to the Form 1099-NEC and 1099-MISC thresholds in California and federally, which are set to increase to $2,000 or more starting in 2026. There are concerns about the implications of these changes and references to population trends in California, with some participants discussing the state’s high cost of living and migration to other states like Texas. While some express apprehension about a decline in California's population, others argue that the numbers are exaggerated or misinterpreted, highlighting the steady population figures over the years. The discussion also touches on personal experiences and perceptions of living in both California and Texas.

What is the computation EBAY will use to determine if a 1099K will be sent for tax year 2026?

dlrsb68

411 View listings

Posted 6 months ago·Last reply 3 months ago

35 comments

jer867734

·3 months ago

163 View listings

See eBay's official posting at https://www.ebay.com/sellercenter/resources/changes-to-ebay-and-your-1099-k. Excerpt below.

Here’s what you need to know

We are happy to report that, with the recent passage of the July 2025 tax bill, the 1099-K threshold was permanently restored to its earlier level of $20,000 and 200 transactions.

As a result, for tax year 2025, only eBay sellers who meet the following criteria will receive a Form 1099-K.

Exceed the current reporting threshold of $20,000 and 200 transactions
Had backup withholding applied in 2025 or your payments were subject to withholding (were required to have taxes withheld from your payments in 2025. In the case that your payments were subject to withholding but your account balance wasn’t enough to cover the tax, you will still receive a Form 1099-K even if no funds were actually withheld.)
Are residents of states that have a lower reporting threshold*

*This includes: Arkansas, District of Columbia, Illinois, Maryland, Massachusetts, Montana, New Jersey, Rhode Island, Vermont, Virginia.

For more information on the reporting threshold for these states, consult with your tax advisor.

*sunshine2u*

·4 months ago

408 View listings

I’d like to piggy back on your great question please. If we sell something pre-owned at less than what we originally paid, and have the receipt to prove this, then it is not considered a profit, correct? And it does not get included into the equation? Thanks

stephenmorgan

·4 months ago

1219 View listings

@*sunshine2u* wrote:
I’d like to piggy back on your great question please. If we sell something pre-owned at less than what we originally paid, and have the receipt to prove this, then it is not considered a profit, correct? And it does not get included into the equation? Thanks

There are many variables with Taxes.

If you are issued a 1099K because you sold that pre-owned item on eBay then you have to account for the money in IRS Documents. You most likely will not owe taxes on what you received, but it depends. If it was a Business item that you have already claimed a full cost deduction on then the entire amount you receive could be subject to taxes.

reallynicestamps

·6 months ago

2485 View listings

You have to declare your profits (not your gross revenue) in any case.

The 1099K just makes it easier to work out what that profit was.

Not easy , just easier.

johnrj1226

·6 months ago

1193 View listings

They will simply total your completed sales fro Jan 1 thru Dec 31 and tally the number of traasaction during that time.

soh.maryl

·4 months ago

110 View listings

Pardon my ignorance, but what impact does the number of transactions have on Federal income tax, or are you referring to state income tax? California?

slippinjimmy

·4 months ago

4 View listings

@soh.maryl wrote:
Pardon my ignorance, but what impact does the number of transactions have on Federal income tax, or are you referring to state income tax? California?

The only connection to Income Tax (State or Federal) is that the number of transactions are part of what triggers a 1099-K.

Regardless of getting a 1099-K or not ALL income is reportable and potentially taxable.

soh.maryl

·4 months ago

110 View listings

Thank you for sharing that information. So it's the # of transactions rather than the amount of income that triggers a 1099-K? And that applies to both State and Federal?

jonathanbrightlight

·4 months ago

0 View listings

@soh.maryl wrote:
Thank you for sharing that information. So it's the # of transactions rather than the amount of income that triggers a 1099-K? And that applies to both State and Federal?

It's a combination of the two. State laws can require it at a lower level for either or both, but the Federal standard right now is $20,000 in gross payments and over 200 transactions, so someone with more than $20,000 in gross payments but only 100 transactions would not be issued one if their state didn't require it, and conversely if they had 400 transactions but only $10,000 in gross payments, they would also not be issued one.

slippinjimmy

·4 months ago

4 View listings

@soh.maryl wrote:
Thank you for sharing that information. So it's the # of transactions rather than the amount of income that triggers a 1099-K? And that applies to both State and Federal?

It's both! the total amount AND the number of transactions.

They don't want to require a 1099-K issued if you sold one thing for $5000, they don't want a 1099-K issued if you had 100 sales with a total value of $200.

dhbookds

·6 months ago

1682 View listings

Also people who may lose benefits if their income is over a certain level.........

soh.maryl

·4 months ago

110 View listings

By "benefits", are you referring to Social Security? So Social Security has access to your income tax information?

slippinjimmy

·4 months ago

4 View listings

@soh.maryl wrote:
By "benefits", are you referring to Social Security? So Social Security has access to your income tax information?

Of course they do, you can loose part or all of your SSA benefits if your other income is too high.

https://www.ssa.gov/benefits/retirement/planner/whileworking.html

theteamsetguy

·6 months ago

20356 View listings

@dlrsb68 ,

It doesn't matter what the Federal requirements. Many states have requirements that are less than Federal requirements. Montana for instance is only $600.00 for 1099k.

I don't get why this such a big issue for many people. Its just a piece of paper with some numbers on it.

shire123

·6 months ago

7401 View listings

Unfortunately, I believe there are lots of people who hope they won't get a 1099 so they can avoid paying any tax on their sales. It's just like contractors who only want cash so they can avoid taxes.

Tax avoidance is a HUGE issue in this country.

kibble-net

·4 months ago

8276 View listings

@shire123 wrote:
Tax avoidance is a HUGE issue in this country.

This is very true.

Especially at the very top.

jonathanbrightlight

·6 months ago

0 View listings

The current requirements as posted by @lakefor94 are correct for now, but there’s still a long time in which a decision could be made that would change that. Remember that it’s just a form and doesn’t decide your tax liability.

soh.maryl

·6 months ago

110 View listings

I, for one, have found it hard to understand why people feel they need to have this information so early in the year, but evidently there is a reason.

albertabrightalberta

·4 months ago

I can explain it to you but I can't understand it for you.104 View listings

@soh.maryl wrote:
I, for one, have found it hard to understand why people feel they need to have this information so early in the year, but evidently there is a reason.

I think they believe that if they don't reach whatever their state's threshhold is, they don't have to report their income. So if their state requires a 1099 for $600, they'll stop selling when they've sold $590.

lakefor94

·6 months ago

122 View listings

For the 2026 tax year (reporting in early 2027), eBay will issue a Form 1099-K to sellers who exceed a total of $20,000 in gross payments AND have more than 200 transactions. This threshold, mandated by the One Big Beautiful Bill Act (OBBBA), requires that both conditions are met for a 1099-K to be issued.

bluesoda2

·6 months ago

202 View listings

Hi there did you see the 2026 guidelines? I didn’t see the published guidelines

dryophelia

·6 months ago

already ready already9 View listings

@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.

lakefor94

·6 months ago

122 View listings

@dryophelia wrote:
@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.

Yes, they have to make sure all the working folks in CA pay up that state income tax as well. There is no mercy.

campanaelia

·6 months ago

754 View listings

@lakefor94 wrote:
@dryophelia wrote:
@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.
Yes, they have to make sure all the working folks in CA pay up that state income tax as well. There is no mercy.

That's fine, that's why they make the big bucks here. It sure beats being part of the race to the bottom.

We also don't pay tax on shipping here, do you?

lakefor94

·6 months ago

122 View listings

@campanaelia wrote:
@lakefor94 wrote:
@dryophelia wrote:
@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.
Yes, they have to make sure all the working folks in CA pay up that state income tax as well. There is no mercy.
That's fine, that's why they make the big bucks here. It sure beats being part of the race to the bottom.
We also don't pay tax on shipping here, do you?

That is funny @campanaelia , California's number 1 benefit, no tax on shipping. Lol
Such the comedian you are.

Net Domestic Loss: California has consistently lost residents to other states, with 229,000 people leaving for other states between July 2024 and July 2025.
Factors: Major factors contributing to this trend include high cost of living, housing affordability, and increased remote work opportunities.

------- My wife has 2 clients that moved to Texas from CA, their exit stories are as comical as you are. Head shakers........ 30+ years of being in the controlled flush-swirl.

kibble-net

·4 months ago

8276 View listings

@lakefor94 wrote:
------- My wife has 2 clients that moved to Texas from CA, their exit stories are as comical as you are. Head shakers........ 30+ years of being in the controlled flush-swirl.

Funny, all the people I know who moved from California to Texas have regretted it completely. I guess we both know different kinds of people!

onefootflipper

·4 months ago

4245 View listings

@lakefor94 wrote:
@campanaelia wrote:
@lakefor94 wrote:
@dryophelia wrote:
@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.
Yes, they have to make sure all the working folks in CA pay up that state income tax as well. There is no mercy.
That's fine, that's why they make the big bucks here. It sure beats being part of the race to the bottom.
We also don't pay tax on shipping here, do you?

That is funny @campanaelia , California's number 1 benefit, no tax on shipping. Lol
Such the comedian you are.
Net Domestic Loss: California has consistently lost residents to other states, with 229,000 people leaving for other states between July 2024 and July 2025.
Factors: Major factors contributing to this trend include high cost of living, housing affordability, and increased remote work opportunities.

------- My wife has 2 clients that moved to Texas from CA, their exit stories are as comical as you are. Head shakers........ 30+ years of being in the controlled flush-swirl.

California has no consistent losses. Their population has been very steady in the 39.1 - 39.5 million range for a solid decade now. What happened was that it stopped growing as remote tech work meant that tech workers no longer had to move to California where the good jobs were.

I have never actually been to California, likely won't ever go there. However your numbers seemed off to me and it only took a moment of checking to verify them. In fact google reports a slight growth in population in the cherry picked timeframe you claimed a huge decline.

adamcartwright

·3 months ago

46 View listings

@lakefor94

I would have a hard time leaving California due to the natural beauty here + close family.

But we have extended family on both sides of the aisle, so to speak, who have relocated to TX and really love it.

slippinjimmy

·6 months ago

4 View listings

@dryophelia wrote:
@bluesoda2

California has a lower threshold than the Federal amount.

For the 2026 tax year, the IRS and California threshold for issuing Form 1099-NEC (nonemployee compensation) and 1099-MISC increases to $2,000 or more for services rendered, up from the previous $600 threshold. This new $2,000 threshold, enacted via the One Big Beautiful Bill Act, applies to payments made in 2026 and will be adjusted annually for inflation starting in 2027.

Your post is not accurate as it does not apply to 1099-K forms (applies to 1099-NEC & 1099-MISC)

The following is from the California Franchise Tax Board

https://www.ftb.ca.gov/file/personal/income-types/information-returns-1099.html#1099-K:-Payment-Card-and-Third-Party-Network-Transactions

1099-K: Payment Card and Third-Party Network Transactions

What’s new this year

For all applicable tax years going forward (retroactive to 2022), you will generally only receive a Form 1099-K from a third-party settlement organization (TPSO) if you received payments that meet both of the following conditions:

Gross payments for goods and services exceed $20,000; and
There are more than 200 transactions in a calendar year.

The phased-in thresholds previously announced by IRS Notice 2024-85 (e.g., $5,000 for 2024 or $2,500 for 2025) are now superseded and no longer apply.