Isn't there a $600 minimum for the requirement to provide eBay with a TIN or SS#?
Summary: peritus questions eBay's policy on requiring tax identification information for sellers, mistakenly assuming it only applies to those selling over $600 annually. Several participants clarify that eBay requires this information from all U.S. sellers regardless of the amount sold, due to federal requirements. peritus expresses reluctance to share personal information and considers abandoning selling on eBay. Others highlight that this requirement is standard across online marketplaces and advise against forfeiting potential income.
I thought the policy was that this is required unless the total amount of annual selling is over $600. Is this not so, or no longer so? I have not sold anything in many months, but I did sell something a few days ago for about $20. Can I just ship the item to the purchaser and tell eBay to either return the leftover money to the purchaser or to just keep it? This is not a business for me, so I am not much bothered losing the opportunity of using it. I do not want to be sharing more personal information.
mam98031
·1 week ago@peritus I think you are considering an old saying that was totally inaccurate. Some 1099 forms [as there is a dozen or so different ones] do not require them being filed unless there was $600+ paid out to a single person in that calendar year. That in NO WAY means that person doesn't have to claim that income on their income tax return if they made less than $600.
There is NO MINIMUM threshold for claiming income on your tax returns yearly. NONE. We are all required by law to claim ALL our income on our tax returns.
Now I think you may be referring to the 1099K which is issued on internet sellers and other gig workers. That minimum was changed back to the original amount when the form started in 2012 or so. $20,000 and 200 transactions.
That in NO WAY means that those that made less than the $20,000 doesn't have to claim their income. The threshold is for the FORM only. A 1099 is ONLY A FORM. It does NOT set laws or thresholds on reportable income.
caldreamer
·1 week agoAll sellers are required to provide your social security# and checking account# (even if you sell item for only $1 dollar).
EBAY reports income to IRS and collects "sales tax" to distribute to the states on "your behalf".
Doesn't matter if you consider yourself a hobby seller or professional seller (all income must be reported to IRS).
monroe67
·1 week ago · Edited"I thought the policy was that this is required unless the total amount of annual selling is over $600. Is this not so, or no longer so?"
No, there is no law or regulation or policy that eBay can only ask for your TIN or SSN if you sell $600 or more. I don't think there ever was such a law or policy.
Indeed, eBay is required, by IRS and state regulations, to ask for TIN or SSN from all (USA) sellers when they first start selling on eBay.
If you start selling on eBay today, eBay has no way of knowing if your gross sales at the end of the year will be $2.99 or $599.99 or $25,000.00. So they have to ask for your TIN or SSN.
"I did sell something a few days ago for about $20. Can I just ship the item to the purchaser and tell eBay to either return the leftover money to the purchaser or to just keep it?"
No. eBay will neither "return the leftover money to the purchaser" nor "just keep it" for themselves.
The entire purpose of eBay is to allow people to sell things on a worldwide platform -- with millions and millions of potential buyers -- so that those people can earn some money for themselves.
Of course, if you really really do not want to keep your earnings from your $20.00 sale, you can always donate it to a local charity or religious organization.
OR you could even "return [that] leftover money [directly] to the purchaser" yourself.
After all, you have the purchaser's address. Write a check or get a cashier's check or put the cash in an envelope and send it to him/her.
OR -- MY own PayPal account is connected to this e-mail address: [self-redacted].
redmodelt
·1 week agoWhat left over money? Does not matter if you are a business or not, it is because of federal requirements that eBay is asking for your ID. If you don't want to share your information, guess you don't want to sell on eBay or possible other online marketplaces so at this point refund the buyer fully. You have nothing to lose at this point RE your eBay selling account and wouldn't see a payout until the money goes to your states unclaimed money thing anyway.
monroe67
·1 week ago · EditedAnd if the OP's payout goes to his state's unclaimed property department,
he'll probably have to show his TIN or SSN to them in order to, y'know,
Claim The Property.
puremichigand
·1 week agoIt depends on the amount, and I'd think on the state. I've had several claims with state governments for payment of unclaimed funds. Big $ items I have to provide my SSN and copy of the card, small dollar items I do not.
peritus
OP1 week agoBy "leftover money", I meant the money that would have come to me. I understand that this is a government requirement, but I view it as an intrusive one. So, I will let the money go to the state and forget about selling on ebay -- No biggie.
jonathanbrightlight
·1 week agoThat's a weird choice. You'll still have to provide the same information to claim it from your state in 6+ months, and you'll lose out on a source of income in the meantime. And every payment processor (meaning pretty much any online marketplace unless they don't let you accept online payments) is going to have the same requirements, since it's federal law.
kensgiftshop
·1 week agoIf you don't want to provide the information, cancel the order and refund the buyer.