24% withholding Fed Tax-how to get the fund back
My acct was strainded c missed SSN, after I updated the SSN and received a released a strained email, Is A 24% of withholding fed tax can be refund back to my acct. my sales is only $65. I only made one sales for an item I did used any more. Ebay was me to provide my TIN #, SSN#. I don't like to give my SSN # but don't have a choice. Why Ebay still held the %24 of fed withholding tax fun. The police as I read it the fund will be released after I updated the SSN#.
7 comments
soh.maryl
·1 year agoAre you absolutely certain that eBay withheld FEDERAL TAX? Have never ever heard of that before.
albertabrightalberta
·1 year ago@vickie-g2024
Please post a screenshot of the "order details" from your sale.
I'm not sure that the 24% of the sale that was withheld is taxes for the IRS.
If your payout is 24% less than the sale amount (of $65), that 24% would include deductions of the FVF (final value fee) on the total amount of the buyer's payment as well as the price of the shipping label.
You offered free shipping but that means that the price of the shipping label comes from you and is deducted from the amount you collected on that order.
kensgiftshop
·1 year ago@vickie-g2024
Ebay doesn't hold federal tax.
They do deduct their fee's from your payment.
monroe67
·1 year ago"Ebay doesn't [with]hold federal tax." Yes, they do, but it happens fairly rarely.
Here's a quote from an eBay article concerning Form 1099-K, emphasis added by me:
"IRS Form 1099-K reports payments made to you within a given calendar year. eBay has an obligation to issue Form 1099-K to sellers who meet specific criteria. This includes, among other criteria, sellers whose transactions on eBay meet the IRS or state minimum reporting thresholds or sellers whose transactions had any backup withholding applied. We'll provide you with Form 1099-K by January 31 each year if you've received payments that meet or exceed the reporting thresholds in the previous calendar year."
This happens when -- as, apparently, in the OP's situation -- eBay has not received a Social Security Number or other taxpayer ID from a seller. eBay is required to withhold a percentage of that seller's gross sales and to send that money to the IRS.
Further, here's a quote from an IRS page (dated March 24, 2025, this year) with highlighting:
"If you are a taxpayer receiving certain types of income payments, the IRS requires the payer of these payments to report them on an information return (see types of payments below). The person or business paying you doesn’t generally withhold taxes from these types of payments, as it is assumed you will report and pay taxes on this income when you file your federal income tax return.
What is backup withholding?
There are situations when the payer is required to withhold at the current rate of 24 percent. This 24 percent tax is taken from any future payments to ensure the IRS receives the tax due on this income.
This is known as Backup Withholding (BWH) and may be required:
ryry-jj
·1 year agoIf eBay already forwarded the tax, then you most likely wont get it back from eBay. When you file your 2025 taxes you will include that amount as a prepaid tax to go against your 2025 tax liabilities
monica-sells
·1 year agoI am assuming you did not provide a W-9 or SSN in a timely manner.
Based on previous (non-ebay) experience, once the "backup withholding" is withheld, it must be submitted to the IRS (tax authority) by the entity that collected it within a certain amount of time. That means that those funds are now in the coffers of the IRS. You probably have to account for it in your subsequent tax return.
klhmdg
·1 year agoYour post makes very little sense.
You sold 1 item in May 2025
You have nothing else listed.
eBay would not have sent a 24% withholding tax anywhere AS long as you supply your SS# and bank info for payments.
IF you dont supply this information eBay will withhold the tax.