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California sellers 1099k form
Were all California sellers sent 1099k forms if their sales were $600 or more? Ebay agents have stated in writing that California's $600 reporting threshold means that the IRS' reporting deferral does NOT apply to California sellers. The FTB denies this. The FTB has stated that it's $600 threshold concerns app based drivers only i.e. Uber drivers.
10 comments
kh-cathy
·3 years 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.
mam98031
·3 years agoCalifornia does NOT require a 1099K for Ebay sales.
IRS has their threshold for 2022 which is the $20,000 and 200 transactions. 2023 it will significantly change if it stays on schedule.
But something to consider is many STATES have their own requirements for a 1099K. So review this link to see if your state is one of them.
https://stripe.com/docs/connect/1099-K
355don
·3 years agoso what was california threashold for paypal for tax years 21 and 22
nobody*s_perfect
·3 years ago@3535 Why do you keep resurrecting old threads and asking the same question?
The California threshold is the same as the federal threshold.
California is not one of the states that have set a threshold that is lower than the federal threshold.
The California threshold for a 1099-K is, and has always been, $20K and 200 transactions.
355don
·3 years agoi guess nobodys perfect, but thanks, and i wil ask what i want
monroe67
·3 years ago"The FTB has stated that it's $600 threshold concerns app based drivers only i.e. Uber drivers."
(For non-Californios, FTB is the California Franchise Tax Board, our state's taxing authority.)
OP: Can you post the source for that statement and the quote itself?
I live in California. I did not receive a 1099-K from eBay for 2022, having sold less than $1,000 of <stuff.>
caldreamer
·3 years agoBelow is information from State of California website. Even though you will NOT be getting a 1099K this year the IRS requires that you report all "gross sales".
For returns for calendar year 2022, you may receive a 1099-K if you received payments:
For returns for calendar years beginning in 2023, you may receive a 1099-K if you received payments:
dbfolks166mt
·3 years agoBelow is information from State of California website. Even though you will NOT be getting a 1099K this year the IRS requires that you report all "gross sales".
For returns for calendar year 2022, you may receive a 1099-K if you received payments:
For returns for calendar years beginning in 2023, you may receive a 1099-K if you received payments:
The policy above was the old one. Sometime around mid January 2023 the CA FTB revised the language and it now reads as follows.
"What's new this year
On December 23, 2022, the Internal Revenue Service announced a delay in implementation of the $600 reporting thresholds for third-party settlement organizations. New IRS guidance states that, “[a]s a result of the delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan Act of 2021.â€
Information return reporters are required to file with the FTB certain information returns, including Form 1099-K, that they are required to file with the IRS. Accordingly, for taxable year 2022 transactions, information return reporters should file with the FTB the same Form 1099-K that they file with the IRS, unless the Form 1099-K is issued for payment in settlement of third-party network transactions to an app-based driver."
tealt
·3 years ago@music97
The eBay agents were mistaken (unless the CA eBay seller is also an app based driver).
The FTB website states:
"What's new this year
On December 23, 2022, the Internal Revenue Service announced a delay in implementation of the $600 reporting thresholds for third-party settlement organizations. New IRS guidance states that, “[a]s a result of the delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan Act of 2021.â€
Information return reporters are required to file with the FTB certain information returns, including Form 1099-K, that they are required to file with the IRS. Accordingly, for taxable year 2022 transactions, information return reporters should file with the FTB the same Form 1099-K that they file with the IRS, unless the Form 1099-K is issued for payment in settlement of third-party network transactions to an app-based driver."
Anecdotally: I am a CA seller with less than $20,000 payments processed in 2022, am not an app based driver, and I did NOT get a 1099K for 2022.
dbfolks166mt
·3 years ago@music97
The eBay agents were mistaken (unless the CA eBay seller is also an app based driver).
The FTB website states:
"What's new this year
On December 23, 2022, the Internal Revenue Service announced a delay in implementation of the $600 reporting thresholds for third-party settlement organizations. New IRS guidance states that, “[a]s a result of the delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan Act of 2021.â€
Information return reporters are required to file with the FTB certain information returns, including Form 1099-K, that they are required to file with the IRS. Accordingly, for taxable year 2022 transactions, information return reporters should file with the FTB the same Form 1099-K that they file with the IRS, unless the Form 1099-K is issued for payment in settlement of third-party network transactions to an app-based driver."
Anecdotally: I am a CA seller with less than $20,000 payments processed in 2022, am not an app based driver, and I did NOT get a 1099K for 2022.
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I was working on my granddaughters taxes and called the CA FTB in early January regarding the 1099 issuance. At that point in time the CA FTB policy read as @caldreamer noted and CA sellers that had over $600 in third party financial processor payments would have gotten a 1099 for 2022.
Then sometime in mid January the CA FTB revised it's 1099 issuance requirements to what you posted and reverted back to the $20K issuance level. I found it kind of surprising that they did so give the potential CA tax revenue involved but not a major issue.
It will be interesting to see what the individual states do in 2023 while the Federal government tries to get it's act together if that is even possible these days.