Legally, I have to report my Ebay earnings on my tax form. Even if my earnings were only 11 bucks. Doesn't matter if I receive a 1099-K or not.
Senator Sherrod Brown of Ohio seems as clueless as everyone else...
December 01, 2023
Sen. Brown Cuts IRS Red Tape for Ohioans with Online Businesses
Without this delay, online sellers and small businesses would be required to complete a 1099-K tax form for any transactions over $600 starting in January, creating more red tape for Ohioans.
Many online sellers are entrepreneurs trying to get their small business off the ground, which is difficult enough on its own. And in an economy where corporations still refuse to pay workers what they’re worth and hard work doesn’t pay off for too many Ohioans, it’s not a surprise that people use sites like E-Bay and Etsy to earn a little extra income. These Ohioans shouldn’t have to wade through excessive tax paperwork.
That’s why earlier this year I introduced the bipartisan Red Tape Reduction Act to permanently raise the threshold for when online sellers receive these tax forms from $600 to $10,000.
As we work to get this bill passed, we’ve been pressing the IRS to delay the implementation of the $600 reporting threshold.
I brought this up with the IRS Commissioner at a hearing and demanded they delay this as we work on a permanent fix. Last week, we got word that the IRS is bowing to pressure and keeping the higher threshold in place for another year. This is welcome news for small businesses across Ohio who were about to be hit by this excessive paperwork right after the holiday rush.
We need to provide these Ohioans certainty by passing my bipartisan bill to write the higher threshold into law, and permanently protect Ohioans from this excessive, and often unnecessary, paperwork.
It’s simple: Ohioans who rely on their online businesses don’t want the threshold lowered. If a rule is so unpopular and hard to enact that you have to keep delaying its implementation over and over, it’s probably a sign it shouldn’t be law in the first place.
I read it had something to do with ticket sellers, who would have caused a flood of paperwork due to selling one Taylor Swift concert ticket or the likes.
One ticket sale could make it over the old $600 limit.
I don't think this delay matters for those in states who have their own threshold. I'm in California, I think ours is $600 since 2022, if I'm not mistaken.
I just looked it up California Has $20 k . once merchant goes over it they get the 1099K .
I'm pretty sure Gov. Newsom will put a stop to that soon. Our state officials love taxes, which is why we pay the highest gas tax in the nation. LOL!
Given the Fed's inability to get their act together I expect a lot of states to establish their own reporting/issuance thresholds in 2024, I am actually surprised more states did not do it in 2023 but there is still time left to do so and they could make it retroactive back to 1 January 2023.
Of course this will just muck up the works as we could wind up with 51 different threshold requirements, one for each state and a federal one. 🙄
It still doesn't change anything for sellers who's State have already implemented the lower thresholds. It will just be harder to get one from eBay because they will claim it is not needed.
I went through this last year and didn't get the 1099K until late February because eBay insisted I didn't need one
It still doesn't change anything for sellers who's State have already implemented the lower thresholds. It will just be harder to get one from eBay because they will claim it is not needed.
I went through this last year and didn't get the 1099K until late February because eBay insisted I didn't need one
eBay will comply with the State requirements that are currently in effect (presuming your account profile accurately reflects your location).
It still doesn't change anything for sellers who's State have already implemented the lower thresholds. It will just be harder to get one from eBay because they will claim it is not needed.
I went through this last year and didn't get the 1099K until late February because eBay insisted I didn't need one
I'm surprised to read that, since I got a 1099-K promptly starting in 2018 when my state reduced the threshold to $600.
I think it's stupid that congress passes a LAW and the agencies that serve UNDER congress decide which laws they feel like following. If I were a congress member, someone at the IRS would be going to prison. Laws don't mean anything if they are made, but only selectively enforced and followed. Why in the world is the IRS interested in cow towing to tax cheats? It's not like these "processors" don't already have all the information for the 1099's and it's not like anyone has to MANUALLY fill out these 1099's. It's automated.
I guess if the IRS doesn't care who pays taxes and who doesn't, we all should find ways to not pay taxes if we can at all avoid it. Doesn't seem the IRS is concerned with getting the tax money that tax payers are supposed to be paying.
I think it's stupid that congress passes a LAW and the agencies that serve UNDER congress decide which laws they feel like following. If I were a congress member, someone at the IRS would be going to prison. Laws don't mean anything if they are made, but only selectively enforced and followed. Why in the world is the IRS interested in cow towing to tax cheats? It's not like these "processors" don't already have all the information for the 1099's and it's not like anyone has to MANUALLY fill out these 1099's. It's automated.
I guess if the IRS doesn't care who pays taxes and who doesn't, we all should find ways to not pay taxes if we can at all avoid it. Doesn't seem the IRS is concerned with getting the tax money that tax payers are supposed to be paying.
Agreed! Those commercials where people seem to brag about owing $30,000 or more to the IRS, yet only paid $5000 or some meager low percentage amount, drive me crazy!! Cutting a criminal a deal! If they paid their taxes every year, they wouldn't owe so much. How is it fair to allow some people to get away with it while others honestly pay their fair share. I feel like, hey, I want back 75% of what I paid in taxes for umpteen years!! Our government is ridiculously biased.
Why in the world is the IRS interested in cow towing to tax cheats?
They are not cow towing to tax cheat (tax cheats get a collateral benefit), they are cow towing to the corporate lobby (The Marketplaces) that lost lots of money (sellers gone, sales gone, fees gone) when 1099K first were introduced. Then when the thresholds were going to go to the $600 level they new this would cause even more sellers to limit their selling, either overall or by spreading the revenue over multiple sites.
I don't believe for a minute that eBay has an interest in reducing the number of tax evaders. Administering the issuing of 1099K's is not onerous, sure it takes some money, millions no doubt even it is only $1 or $2 per 1099. Even then they are required to establish the process and administer with no real difference in cost be it reporting 3 Million accounts or 6 million accounts.
Why in the world is the IRS interested in cow towing to tax cheats?
They are not cow towing to tax cheat (tax cheats get a collateral benefit), they are cow towing to the corporate lobby (The Marketplaces) that lost lots of money (sellers gone, sales gone, fees gone) when 1099K first were introduced. Then when the thresholds were going to go to the $600 level they new this would cause even more sellers to limit their selling, either overall or by spreading the revenue over multiple sites.
I don't believe for a minute that eBay has an interest in reducing the number of tax evaders. Administering the issuing of 1099K's is not onerous, sure it takes some money, millions no doubt even it is only $1 or $2 per 1099. Even then they are required to establish the process and administer with no real difference in cost be it reporting 3 Million accounts or 6 million accounts.
I think the cost actually rounds down to zero for any seller not requiring a paper copy. It is just a report that the ebay backend software can generate in a fraction of a second. It costs ebay no more money to generate that report than it does to generate any of the countless reports you can get in seller hub.
The IRS in news reports have stated they where never happy about the 1099K $600 limit do to being over burden too much paper work . they have pushing for $5,000 to $10,000 limit 1099K filing .
The IRS in news reports have stated they where never happy about the 1099K $600 limit do to being over burden too much paper work . they have pushing for $5,000 to $10,000 limit 1099K filing .
I don't know why that would be. Small businesses like mine that either PAY more than 599 or receive more than 599 for services, all have to deal with 1099's. There are already millions of small businesses dealing with 1099's.
I'M not happy the IRS isn't applying the LAW as they are required to. The IRS does NOT make the laws of the land. I may not agree with the laws, but if we are not going to obey the laws, then what good are any of them? They either apply to everyone or they apply to no one.
The IRS in news reports have stated they where never happy about the 1099K $600 limit do to being over burden too much paper work . they have pushing for $5,000 to $10,000 limit 1099K filing .
So the IRS is worried about folks having too much paper work. I guess they have been concerned about me for years, then, because I've reported my sales since before any 1099ks were sent out for any amount. I wonder how they felt about that pesky tax money being sent in?
1099 K is cumulative no matter how many sites, or how many eBay accounts you sell from. Sell $4900 from eBay and $101 from Etsy and .........CONGRATULATIONS! You've just won a 1099 K!!!
1099 K is cumulative no matter how many sites, or how many eBay accounts you sell from. Sell $4900 from eBay and $101 from Etsy and .........CONGRATULATIONS! You've just won a 1099 K!!!
1099 K is cumulative no matter how many sites, or how many eBay accounts you sell from. Sell $4900 from eBay and $101 from Etsy and .........CONGRATULATIONS! You've just won a 1099 K!!!
That isn't true.
I sell 100K+ annually on ebay and I never get sent 1099s from the sites I sold crumbs on.
Unavailable member
·2 years ago
Their profile isn't available.
@rustydalmatian wrote:
1099 K is cumulative no matter how many sites, or how many eBay accounts you sell from. Sell $4900 from eBay and $101 from Etsy and .........CONGRATULATIONS! You've just won a 1099 K!!!
It is cumulative across eBay ID’s, not cross platforms. eBay, Etsy, Poshmark, etc. don’t share information.
Yes, but of course I had to confirm it with our own "wastingtime". He gave me the link to read as the IRS dude was on the financial channel this morning stating this same thing.
The IRS statement says: "As a result,reportingwill not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023."
. . . . . which will be misinterpreted by tooooo many eBay sellers. Which, in itself, is nothing new. Those 1099-K misinterpretations will be like certain insects and automobile warranty sales operations: they will survive a nuclear holocaust.
Among all the parties involved in eBay transactions, even tangentially, . . . . . which could include sellers, buyers, shippers, banks/credit/debit cards, and eBay itself . . . . . . . eBay itself is most affected by today's announcement, it seems to me.
What today's announcement says is that eBay (among other Marketplace Facilitator organizations) . . . . . eBay is not required to report . . . . . to the IRS . . . . . any payment to any "taxpayer" (eBay seller) unless that "taxpayer" . . . . . receives/d over $20,000 and has/d more than 200 transactions in 2023.
eBay can reprogram its computers to create a 1099-K report for each seller who meets those two criteria: at least 200 transactions that resulted in payouts of at least $20,000, during 2023. At least this year, eBay has a few weeks lead time before this revision to its programming has to be completed. Last year the IRS announced their similar decision only eight (8) days before the end of the year.
ms_m91
·2 years agoLegally, I have to report my Ebay earnings on my tax form. Even if my earnings were only 11 bucks. Doesn't matter if I receive a 1099-K or not.
Senator Sherrod Brown of Ohio seems as clueless as everyone else...
Without this delay, online sellers and small businesses would be required to complete a 1099-K tax form for any transactions over $600 starting in January, creating more red tape for Ohioans.
Many online sellers are entrepreneurs trying to get their small business off the ground, which is difficult enough on its own. And in an economy where corporations still refuse to pay workers what they’re worth and hard work doesn’t pay off for too many Ohioans, it’s not a surprise that people use sites like E-Bay and Etsy to earn a little extra income. These Ohioans shouldn’t have to wade through excessive tax paperwork.
That’s why earlier this year I introduced the bipartisan Red Tape Reduction Act to permanently raise the threshold for when online sellers receive these tax forms from $600 to $10,000.
As we work to get this bill passed, we’ve been pressing the IRS to delay the implementation of the $600 reporting threshold.
I brought this up with the IRS Commissioner at a hearing and demanded they delay this as we work on a permanent fix. Last week, we got word that the IRS is bowing to pressure and keeping the higher threshold in place for another year. This is welcome news for small businesses across Ohio who were about to be hit by this excessive paperwork right after the holiday rush.
We need to provide these Ohioans certainty by passing my bipartisan bill to write the higher threshold into law, and permanently protect Ohioans from this excessive, and often unnecessary, paperwork.
It’s simple: Ohioans who rely on their online businesses don’t want the threshold lowered. If a rule is so unpopular and hard to enact that you have to keep delaying its implementation over and over, it’s probably a sign it shouldn’t be law in the first place.
rustydalmatian
·2 years agoYep. I was wrong. I had a moment of euphoria and wasn't thinking. It's the dog house for the dalmatian☹ï¸.
krazzykats
·2 years agoI read it had something to do with ticket sellers, who would have caused a flood of paperwork due to selling one Taylor Swift concert ticket or the likes.
One ticket sale could make it over the old $600 limit.
fern*wood
·2 years agoIf folks couldn't figure out the paper work in two years, what makes them think another year will help?
krazzykats
·2 years agoBecause the IRS still needs to figure it out themselves before they can tell us! LOL!
$600 was too low and it took them until now to figure it out.
The IRS can't handle the additional paperwork for the occasional one-off sales that exceed $600.
bryo_3145
·2 years ago"I could have sold more items this year."
chris90242
·2 years agoI don't think this delay matters for those in states who have their own threshold. I'm in California, I think ours is $600 since 2022, if I'm not mistaken.
carlmarxx
·2 years agoNo Ca. is more then $600 for the 1099K .
carlmarxx
·2 years agoI just looked it up California Has $20 k . once merchant goes over it they get the 1099K .
chris90242
·2 years agoI'm pretty sure Gov. Newsom will put a stop to that soon. Our state officials love taxes, which is why we pay the highest gas tax in the nation. LOL!
dbfolks166mt
·2 years agoI'm pretty sure Gov. Newsom will put a stop to that soon. Our state officials love taxes, which is why we pay the highest gas tax in the nation. LOL!
Given the Fed's inability to get their act together I expect a lot of states to establish their own reporting/issuance thresholds in 2024, I am actually surprised more states did not do it in 2023 but there is still time left to do so and they could make it retroactive back to 1 January 2023.
Of course this will just muck up the works as we could wind up with 51 different threshold requirements, one for each state and a federal one. 🙄
steady2304
·2 years agoIt still doesn't change anything for sellers who's State have already implemented the lower thresholds. It will just be harder to get one from eBay because they will claim it is not needed.
I went through this last year and didn't get the 1099K until late February because eBay insisted I didn't need one
slippinjimmy
·2 years agoeBay will comply with the State requirements that are currently in effect (presuming your account profile accurately reflects your location).
nobody*s_perfect
·2 years agoI'm surprised to read that, since I got a 1099-K promptly starting in 2018 when my state reduced the threshold to $600.
farmalljr
·2 years agoI think it's stupid that congress passes a LAW and the agencies that serve UNDER congress decide which laws they feel like following. If I were a congress member, someone at the IRS would be going to prison. Laws don't mean anything if they are made, but only selectively enforced and followed. Why in the world is the IRS interested in cow towing to tax cheats? It's not like these "processors" don't already have all the information for the 1099's and it's not like anyone has to MANUALLY fill out these 1099's. It's automated.
I guess if the IRS doesn't care who pays taxes and who doesn't, we all should find ways to not pay taxes if we can at all avoid it. Doesn't seem the IRS is concerned with getting the tax money that tax payers are supposed to be paying.
sodelight
·2 years agoAgreed! Those commercials where people seem to brag about owing $30,000 or more to the IRS, yet only paid $5000 or some meager low percentage amount, drive me crazy!! Cutting a criminal a deal! If they paid their taxes every year, they wouldn't owe so much. How is it fair to allow some people to get away with it while others honestly pay their fair share. I feel like, hey, I want back 75% of what I paid in taxes for umpteen years!! Our government is ridiculously biased.
slippinjimmy
·2 years agoThey are not cow towing to tax cheat (tax cheats get a collateral benefit), they are cow towing to the corporate lobby (The Marketplaces) that lost lots of money (sellers gone, sales gone, fees gone) when 1099K first were introduced. Then when the thresholds were going to go to the $600 level they new this would cause even more sellers to limit their selling, either overall or by spreading the revenue over multiple sites.
I don't believe for a minute that eBay has an interest in reducing the number of tax evaders. Administering the issuing of 1099K's is not onerous, sure it takes some money, millions no doubt even it is only $1 or $2 per 1099. Even then they are required to establish the process and administer with no real difference in cost be it reporting 3 Million accounts or 6 million accounts.
onefootflipper
·2 years agoI think the cost actually rounds down to zero for any seller not requiring a paper copy. It is just a report that the ebay backend software can generate in a fraction of a second. It costs ebay no more money to generate that report than it does to generate any of the countless reports you can get in seller hub.
slati_2013
·2 years agoThink of all the sellers who chose not to sell this year or sold just enough not to hit the $600 mark. They must be kicking themselves.
inhawaii
·2 years ago...rightfully so. 😉
rustydalmatian
·2 years agoThey're still sore from last year.
carlmarxx
·2 years agoThe IRS in news reports have stated they where never happy about the 1099K $600 limit do to being over burden too much paper work . they have pushing for $5,000 to $10,000 limit 1099K filing .
farmalljr
·2 years agoI don't know why that would be. Small businesses like mine that either PAY more than 599 or receive more than 599 for services, all have to deal with 1099's. There are already millions of small businesses dealing with 1099's.
I'M not happy the IRS isn't applying the LAW as they are required to. The IRS does NOT make the laws of the land. I may not agree with the laws, but if we are not going to obey the laws, then what good are any of them? They either apply to everyone or they apply to no one.
fern*wood
·2 years agoSo the IRS is worried about folks having too much paper work. I guess they have been concerned about me for years, then, because I've reported my sales since before any 1099ks were sent out for any amount. I wonder how they felt about that pesky tax money being sent in?
onefootflipper
·2 years agoThe real news here is the new $5000 rule. That is going to result in a huge number of sellers trying to sell $4900 each on 10 different sites.
rustydalmatian
·2 years ago1099 K is cumulative no matter how many sites, or how many eBay accounts you sell from. Sell $4900 from eBay and $101 from Etsy and .........CONGRATULATIONS! You've just won a 1099 K!!!
slippinjimmy
·2 years agoIncorrect.
onefootflipper
·2 years agoThat isn't true.
I sell 100K+ annually on ebay and I never get sent 1099s from the sites I sold crumbs on.
Unavailable member
·2 years agoIt is cumulative across eBay ID’s, not cross platforms. eBay, Etsy, Poshmark, etc. don’t share information.
heckofagame
·2 years agoI think to keep things fair; I will not report the first 20k of my sales for the year? I will happily report anything over that.
silverstatetreasureboxes
·2 years ago@the_fancy_fox
Yes, but of course I had to confirm it with our own "wastingtime". He gave me the link to read as the IRS dude was on the financial channel this morning stating this same thing.
Looks like @mcdougle4248 supplied it as well.
dhbookds
·2 years agolol........are they going to get in a pickle with this statement:
As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.
They mean the form..........but people are going to read it as the $$......
slippinjimmy
·2 years agoHere on eBay, many will absolutely claim that is what it means, they will be posting and reposting that misunderstanding for yet another year.
asset_liquidators
·2 years agoYep, they will be pointing right to it and saying "see, the IRS says I don't have to report my income." lol
monroe67
·2 years agoThe IRS statement says:
"As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023."
. . . . . which will be misinterpreted by tooooo many eBay sellers. Which, in itself, is nothing new. Those 1099-K misinterpretations will be like certain insects and automobile warranty sales operations: they will survive a nuclear holocaust.
Among all the parties involved in eBay transactions, even tangentially,
. . . . . which could include sellers, buyers, shippers, banks/credit/debit cards, and eBay itself . . . . . . .
eBay itself is most affected by today's announcement, it seems to me.
What today's announcement says is that eBay (among other Marketplace Facilitator organizations)
. . . . . eBay is not required to report
. . . . . to the IRS
. . . . . any payment to any "taxpayer" (eBay seller) unless that "taxpayer"
. . . . . receives/d over $20,000 and has/d more than 200 transactions in 2023.
eBay can reprogram its computers to create a 1099-K report for each seller who meets those two criteria:
at least 200 transactions that resulted in payouts of at least $20,000, during 2023.
At least this year, eBay has a few weeks lead time before this revision to its programming has to be completed.
Last year the IRS announced their similar decision only eight (8) days before the end of the year.
mcdougle4248
·2 years agoHere is the link for the IRS news release in case anyone is interested:
https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation
4pawsup*
·2 years agoThank you for the link.