Ah so Ebay gets it half right again...
Quick rant, I Sell here just to buy here.
I've been scammed enough times that I only sell things 100.00 or less (don't sell what you can't afford to lose on Ebay). Then they came out with the W-2 thing. Fine, I just sell for my hobby So I quit taking payouts, and just use the money I make from sales to buy more things on Ebay, even though I'm paying more on ebay for things, fine, I can still get deals on auctions.
So this morning I go to bid on an auction, and a pop up comes up and says You must choose a payment method.
Good I thought, Catch those dead-beat bidders.
Then I went to put in my payment method and it's not there, just my credit card.
And something about a 7-day plan, so I'm guessing I could just put in my credit card and pay with my sales money if I won, but I'm tired of workarounds here, and customer service is non-existent.
So just another nail in the coffin for me.
inhawaii
·6 months agoI agree with @hachumi
If you earn $1000 selling on ebay but use that money to buy things on ebay, you've made $0 profit.
Keep on doing it that way!
kibble-net
·10 months agoAs others have already said, just because you don't withdraw the money doesn't mean you don't owe taxes on it.
Probably best to consult with an accountant, rather than pulling tax advice out of your posterior, unless you enjoy audits.
pickapaper
·10 months ago@hachumi
You posted a thread about basically this same subject in 2022. Nothing has changed since then.
BTW, calling people names when you don't agree with them or their reply is not what you want to hear is rude and uncalled for.
meme6253
·10 months agoDon't be a tax cheat, That can get you in serious trouble even for Minor amounts if you are ever caught.
hachumi
OP10 months agoThanks for your concern on my well-being
Don't worry I make enough where I don't have to cheat, Plenty of loop holes in my tax bracket, the gov. let's me cheat legally
Like I said I've had an ebay account since 98 and in the last ten years or so I just kept it to sell and buy RC parts that's all, But the en poo ification of ebay is strong, so it may just be time to liquidate.
And also don't worry the door won't hit me there...
I will bid you all adieu
My thoughts and prayers are with all of you.
buyselljack2016
·10 months agoOregon.
You can probably fly under the radar and not be aggravated by having to fill out all the info/file forms/schedules to show that you sell at a loss.
hachumi
OP10 months agoYou probably nose around in other people's profiles looking for a reason to criticize someone who askes a question.
That's why this board is so toxic and unhelpful.
monica-sells
·10 months agomy reply was neither 'toxic' or 'unhelpful' and anything but critical.....
I am not an advocate (cheerleader) for the rules & regulation put forth by the IRS....
I was giving you a heads up that your thought process is wrong. As pointed out, there is...
NO (W-2 Form) from ebay....
NO "hobby" selling (everything you sell MUST be claimed/recorded or memorialized for the taxman (that does not mean the total amount is taxed, but it MUST be recorded somewhere on your annual tax return).
Just because you aren't had the proceeds, you are the rightful recipient of the funds "payouts"...
If you sell $600.00 TOTAL, and never see a penny in your home bank account, pay with your funds, and you live in North Carolina (for example) you will recieve a 1099-K and MUST reconcile that on your tax return (1040) for that year.
and yes, Barter is, in fact, taxable.
buyselljack2016
·10 months agoI was agreeing with your position...........................
soh.maryl
·10 months ago"Then they came out with the W-2 thing."
Are you referring to the Federal income tax form? I assume you know eBay isn't the originator of that, right?
hachumi
OP10 months agoNope just made it more of a hassle for tax purposes
hachumi
OP10 months agoNope sorry I don't don't get paid from ebay. No income is generated. no W-2, Been doing it since you could pay with what you sold.
dy60609
·10 months ago24 years I have never received a "W-2" from eBay.
(1099-K yes, W-2, no.)
monica-sells
·10 months agoPlease...for your own good...ask someone you trust or know that knows basic accounting 101 about this statement. (and just because you don't physically receive a "payout")
It is wrong and could get you in deep do-do.........this is not bitcoin, this is traceable funds
hachumi
OP10 months agoSo Nice of you to be looking out for my own good.
So please for the love of god!
Say there is an action site where you action off you old stuff for credits you can only use on that site, you're more like trading. you get a bunch of cool stuff. is any income generated?
jonathanbrightlight
·10 months ago@hachumi
How about instead, we say that you're selling your items on eBay (because you are), instead of some made-up site (which would have the same rules if it was based in the US).
Let's also say that you sell items and receive payment that you choose to keep within the site's payment system instead of transferring it to a bank account (because that is what is happening).
Let's also say that said site is bound by the laws of the US and has to both follow the Know Your Customer laws and the IRS's tax reporting laws (because they do).
Are you going to get in trouble if you choose to not report that income, but that site is reporting that income to the IRS as required by law?
hachumi
OP10 months agoThe Imaginary site is called listia
You only pay taxes on profit, ebay is not profit it's actually a loss because I pay fees, so no taxible income is generated.
hachumi
OP10 months agoYou know for a mentor you're pretty quick to jump on the "you got to pay taxes" bandwagon without even reading and understanding the post. I said "I only sell for my hobby", I sell my old parts at a loss, and just take pay outs,
I love how there are just so many fine upstanding tax payers on this board, fills my American heart with pride and joy, my thoughts and prayers are with you all.
fern*wood
·10 months agoHey, I get it. I don't like plenty of the things my tax payer money is funding, regardless, I'm thankful for those that do pay. It would be a real pain for me not to have roads and bridges, although many in my state need lots of help. Those that don't pay their fair share shouldn't benefit, but of course they do.
hachumi
OP10 months agoNo, you don't understand how our fiat money system works. Sorry
jonathanbrightlight
·10 months ago@hachumi
Sorry to hear you dislike when I provide correct answers.
hachumi
OP10 months agoYou didn't
powell-collectibles
·10 months agoYou have quickly learned that a big hobby on these boards is to pretend that everyone is a tax cheat.
sltom6
·10 months agoWhen they virtually admit it, as many do, there's no need to pretend.
reallynicestamps
·10 months agoBarter income is also taxable.
Learned that back in the days when many of my customers were hippie communes. (I sold them woodstoves-- for cash.)
One of the communes nearly lost their land because they had been "trading" with other communes , and civilians , but were not declaring that as farm income.
hachumi
OP10 months agoYou only pay taxes on profit, not just commerce.
The hippies were probably trading up and selling what they got for profit.
reallynicestamps
·10 months ago@hachumi
You underestimate Revenue Canada.
Selling your old parts at a loss on ebay isn't.
If the parts are used (by you) they have declined in value.
Selling at a loss is not a good business plan.
fern*wood
·10 months agoYour payouts are only a portion of the money that is processed and tracked for your sales. They still give you that money and just because you quickly spend it doesn't mean it isn't reportable...along with the shipping.
If you worked at Wendy's and spent your money before you got home so it never hit a bank doesn't mean it wasn't reported.
hachumi
OP10 months agoTrading your labor for money at Wendy's is income and is taxable
Selling your old parts at a loss on ebay isn't.
The government only taxes gains if you are not making a profit no gain.
kensgiftshop
·10 months agoTo be selling your old parts, you sure sell a lot of new ones, which I'm sure you're making a profit on them.
monroe67
·10 months agoSo -- your title is "eBay gets it half right again . . ."
And you say this: "No income is generated. no W-2."
You're only maybe a third right with those sentences.
It is true that you, as an eBay seller, will not receive a Form W-2 from eBay.
eBay does not send Form W-2 to people who sell stuff (or try to) on the eBay platform.
Form W-2 is a report that "summarizes an employee's annual wages and the amount of federal, state, and other taxes withheld from their paychecks" (emphasis added).
eBay sellers are not eBay employees.
eBay reports earnings from sales using Form 1099-K.
eBay might have to issue you a Form 1099-K IF your 2025 earnings from eBay sales meets both of the following criteria:
(1) you sold things in at least 200 separate transactions during 2025 and
(2) your gross earnings from your eBay sales during 2025 were at least $20,000.
However you choose to deal with your obligations to the Internal Revenue Service of the United States of America is completely up to you.
luckythewinner
·10 months agoeBay does not send W-2's.
eBay sends 1099-K,s and those are based on buyer payments processed for your account, not on payouts distributed to you.
If the buyer paid, that payment is counted toward your 1099-K.
ittybitnot
·10 months agoThen I went to put in my payment method and it's not there, just my credit card.
@hachumi
Sounds like your Buyer ID was placed into forced compliance for "auto-pay". The big clue is the screen you mention requiring a payment method in order to proceed to make a bid or offer. This will limit the payment options you can use AND typically remove the possibility of combining your auction wins from the same seller or allowing them to invoice for same. Each item will be auto-billed separately at full price.
Unfortunately, "spendable funds" is one of the payment options not allowed. eBay wants a payment source they can "hit" for an auto-payment. They don't want you to 'spend' all your spendable funds before the auction ends. Other options you can't use as a buyer would be Apple Pay, Google Pay, PayPal Credit, PayPal Pay in 4, Paypal balance or bank account, gift cards, coupons, etc.
Sellers do have control over this. Most don't even know these preferences exist. All new users get them without a word from eBay. Even if you don't use auctions or the make offer feature, likely yours are ready to go in case you change your mind:
https://www.ebay.com/bmgt/buyerrequirements
Buyer Rules:
*Require buyers to provide a payment method before they place a bid.
*Require buyers to provide a payment method before they make an offer.
Click submit or save.
This feature is quite unpopular with buyers. Many just refused to comply once they figured out that what eBay first advertised as the "New Enhanced Smoother Way to Pay...Now you can...." really meant. i.e. They left out the part that it was really 'NOW YOU MUST, and no more combined shipping, and most of the payment methods we told sellers will bring more sales are disallowed.' The 7 day payment delay is likely a ploy to lure them back, because it is suppose to be a 'time delay' to encourage combined shipping for auctions. I see no information that says a seller must comply. This feature is quite unpopular with some sellers who did not wish to combine shipping anyway, and sacrificed sales to get paid faster.
You see that screen and want to use spendable funds, find a different seller that is willing to provide a better buyer experience.
hachumi
OP10 months agoYea I know I read it.
Thanks
kensgiftshop
·10 months agoJust because you stopped taking payouts, you still earned the money and has to be reported.
dhbookds
·10 months agoDon't know why you think using your sold income making any difference......income is still reportable..