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Concerning the delay of the 1099K for $600 or more
So I've read several articles online about this delay for the $600 threshold but I can't seem to find one that clearly states the time frame. What I'm confused about is if sellers will receive a 1099k for $600 or more in January 2024 for their 2023 sales.... or if 1099k's for the $600 threshold are to begin in January 2025 for 2024 sales. Also wondering if Ebay has made any statements about this yet, confirming that they will not send 1099k's for $600 or more for the current year (I saw nothing on the announcements page). Thanks for any help.
14 comments
kh-cathy
·2 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.
cv2912chris
·2 years agoSo lets just say you know your going to sell item this year for 3000 how would that work out next year?
brightlightbookseller
·2 years agoThis is a very old thread and will be closed soon. For now... wait and see.
big_cat_delivery
·3 years agoLet me give you a simple example on how this $600 reporting rule change from $20k can affect small or casual sellers significantly. You might have heard many accountants said there's no need to worry about the small reporting threshold if you did not make profit such as selling your old items when bought new. It's only the case that you have saved your receipt for the items you sold when you bought them new.
jitalo2022
·3 years agoEbay (along with many other online selling sites) has probably lost MEGA millions in listing/final value fees this year because millions of sellers stayed under the $600 threshold that they now cancelled 1 week before the end of the year. WOW. And, with the uncertainty of this upcoming year, 2023 will probably have millions still staying under the $600 threshold. Sites that only accept electronic type payments will be in for a hurting going forward with casual/hobby type sellers bowing out.
coolections
·3 years ago@jitalo2022 If someone stopped selling only because they wanted to stay under $600 that is no loss at all to Ebay for two reasons. How much do you think Ebay would lose for a part timer to stop just for a few dollars short of the minimum. Also, if the seller stops there are plenty of other sellers to go around, a buyer will just pick someone else.
lacemaker3
·3 years agoThis post is disrespectful and insulting.
Just because someone is using a posting ID, that does not mean they don't have any experience or knowledge.
@coolectionshas a lot of experience and knowledge that should be respected.
downunder-61
·3 years agoThe IRS announcement:
https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...
eBay's announcement:
https://www.ebaymainstreet.com/news-events/irs-announces-delay-new-600-1099-k-tax-reporting-threshol...
which states "...only sellers who:
1) exceed the previous threshold of $20,000 and 200 transactions,
2) that were subject to backup withholding or,
3) whose states of residence have a lower reporting threshold
will receive a Form 1099-K."
Thank you shipscript(eBay Mentor) for information
dbfolks166mt
·3 years agoThe IRS announcement:
https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...
eBay's announcement:
https://www.ebaymainstreet.com/news-events/irs-announces-delay-new-600-1099-k-tax-reporting-threshol...
which states "...only sellers who:
1) exceed the previous threshold of $20,000 and 200 transactions,
2) that were subject to backup withholding or,
3) whose states of residence have a lower reporting threshold
will receive a Form 1099-K."
Thank you shipscript(eBay Mentor) for information
. It will be interesting to see the drama unfold in 2023 regarding this quagmire. I wonder how they are figuring they are now going to pay for the American Rescue Plan act and the increase in the IRS staffing and budget that the plans claimed the tax revenue from the reduce issuance threshold would help cover.
It will be interesting to see how many states break off and establish their own 1099-K issuance thresholds knowing that 11 states have already set lower thresholds and that it could happen anytime during the calendar year. When Virginia set it's lower issuance threshold and passed the law in July of 2020 they made it effective for the 2020 tax year and made the reportable $ amounts to include ALL processing from 1 January of 2020.
In addition you have a change in Congressional membership and while majority of the Senate will remain with the Democrats the majority in the House will flip to Republican who already had the IRS increases in their crosshairs and who all voted against the American Rescue Plan Act This could be fun to watch and we could end up with 50 different individual state 1099 threshold issuance limits which I am sure the third party financial processors would simply love, along with a Federal limit that could conflict with all of them. This is going to be interesting and possibly funny to watch.
arkantiques
·3 years agoOne can always move their business to a state that has no income tax. The 1099 thingy changes nothing…taxes on profits and/or capital gains were always due. It just puts millions or billions of more forms and paperwork requirements out there.
A bigger issue has always been eBay charging seller fees on shipping and taxes it collects. In particular, USPS shipping is a federal service, and tax exempt. Charging fees and taxes on an exempt federal service is illegal. Class action anyone?
dbfolks166mt
·3 years agoOne can always move their business to a state that has no income tax. The 1099 thingy changes nothing…taxes on profits and/or capital gains were always due. It just puts millions or billions of more forms and paperwork requirements out there. The 1099 has nothing to do with sales tax it is related to income tax both at the state and federal level. You are correct about the 1099 issuance changing nothing as far as paying income taxes and SE taxes on net revenue/income.
A bigger issue has always been eBay charging seller fees on shipping and taxes it collects. In particular, USPS shipping is a federal service, and tax exempt. Charging fees and taxes on an exempt federal service is illegal. You are correct but with regards to sales tax this would only apply to the sale of items where the shipping was separate from the item I.E. the seller is not using free shipping for their sales. There is nothing illegal about eBay charging fees on sales tax and it is done by virtually every business entity where the payment is made by CC. The CC company charges merchant fees on the entire amount of the transaction including sales tax.
Class action anyone? Feel free to lead this if you can find a lawyer that will take the case.
costumejunkie
·3 years agoI’ve been selling on eBay for 26 years. No more. Until the $20,000 reporting is restored I can sell my items on ANY online platform and have to report over $600. I’ll sell locally for cash. Goodbye eBay. Your site has just been ruined.
nobody*s_perfect
·3 years agoYes, all-cash transactions is a longstanding way to avoid paying income tax.
But by limiting your buyers to local pickup, you might end up selling items for much less than the price you'd get on eBay. So do consider whether you'll end up with more $ in your pocket after (1) selling locally versus (2) selling on eBay and paying income tax at your marginal tax rate on whatever profit is left after you deduct allowable expenses such as eBay fees, postage, original cost of the item, etc.
southern*sweet*tea
·3 years agoYou have ALWAYS (well, since the 1930s) been required to report all income received, no matter the source, regardless if you get any sort of form.
Just because income is reportable doesn't mean it's taxable, that's what deductions are for.
And I personally don't think selling online is ruined. I think it's about time all the tax dodgers are made to pay up while the rest of us have been paying our fair share all along.