2022 1099-Ks issued for New Jersey residents if $1,000 or more in sales
The IRS revised the 1099-K filing requirement for 2022 so you need $20,000 in sales before 1099-K is filed. However, eBay filed 1099-Ks with the IRS and presumably the State of NJ for NJ residents if sales hit $1,000.
NJ requires a copy of the 1099-K to be filed with NJ if sales hit $1,000. However, is that only IF a 1099-K is required to be filed with IRS?
ebay is saying that the NJ rule is requiring eBay to file a 1099-K with federal and state if sales hit $1,000, not the federal rule of $20,000. Under this application, even if no federal 1099-K is required to be filed, NJ is forcing a federal and state filing if sales hit $1,000 thereby overriding the federal filing rules.
Does anyone know if the NJ filing requirement applies only IF a federal 1099-K is required to be filed?
luckythewinner
·3 years agoDoes anyone know if the NJ filing requirement applies only IF a federal 1099-K is required to be filed?
Of course the NJ requirement is independent of the federal requirement. Otherwise there would be no point to NJ having a different threshold.
eBay was correct to issue you a 1099-K.
bbravo65
·3 years ago...this is way back 20+ yrs ago...I missed to report a sale (not from eBay) for $120 that led to owning IRS very small amount of tax...but IRS didn't notify my filing instantly instead of waiting for 3 yrs later with a massive interest enclosed when audit...
...a hard and costly lesson to learn...just don't mess with any government level tax systems...report everything you earned, you might get back more in refund if you know how to work around their numbers...
nobody*s_perfect
·3 years agoTry to think about that logically: If the answer to that question was "yes," then what would be the point of NJ having its own, lower threshold??
tealt
·3 years agoNo.
If your gross amount processed by eBay (or any other market facilitator), is $1000 or more and you live in New Jersey, you will receive a 1099K from New Jersey--no matter what the federal 1099k levels are. Each state that has an income tax can set their own 1099K level. Or, a state can sync with the federal requirements. New Jersey and several other states do not sync.
I could be wrong, but I believe that if you get a 1099K from New Jersey, a copy of that 1099K also goes to the IRS.
nobody*s_perfect
·3 years agoYes, eBay will send the 1099-K to the IRS as well as to the state.
The various thresholds ($1000, $20K, whatever) are the threshold above which eBay is required to issue a 1099-K. They are NOT the threshold at which you are obliged to report this income. You're supposed to report all of your income anyway, regardless of whether you get a 1099-K or not.
12345jamesstamps
·3 years agoSome states do not make it under the $20,000. rule.
New Jersey is such a state. For 2022, if you got a 1099-K and live in New Jersey you must file it. It's $1000. or more.
Not doing so, IRS usually takes 3 years to tell you about such a mistake with interest added about the mistake.
Technically, all money earned show be declared to the IRS.
Some people don't realize doing jury duty and getting one day paid has to be declared...and 3 years down the road the IRS will ask for a check with added interest. One day pay is $15. in California. It has to be declared as income.
frodobagginskennedy
·3 years agoit does not matter of you sell $5.00 you need to put it on you tax filing. There are many states that are requiring $600 rule. so YES you need to file or put on your tax filing Part C i believe.