New question to old SSN topic
I, like others, have reached to $600 limit where eBay needs my full SSN for IRS reporting. OK, so be it. My question is : after I give them my SSN for this year, 2023, and I receive all due payouts, can I then go in and delete my SSN so it is not kept in their server? Yeah, I may be a bit paranoid and if I had monitored my sales a bit closer I would have stopped prior to reaching the $600 limit.
14 comments
mtgraves7984
·2 years agobradfordr-half
OP2 years agoThank you.
fab_finds4u
·2 years agoWhether or not there's a $600 reporting threshold on eBay shouldn't matter because all your income is supported to be reported when you file taxes.
What you're saying about should've stopped prior just tells us you're dodging taxes if you haven't reported any eBay income, thus far
redlinear
·2 years agoOne down, a million to go 😂
frankenhobbit
·2 years agoThey're not dodging any taxes if they did not make a profit. I'm going to bet that the majority of people who sold 600 or less worth of items in a year did not make any profit. They probably have a 'regular' job and already pay a boatload of taxes. I do.
I sold approx 3k selling my old stuff in the last few weeks, Did not make a profit. Fortunately, I can produce receipts that show I spent more than what I received and already have them ready. But common sense would also show that. But I will need to spend time on a form, and then the taxes I pay from my real job will be wasted on paying someone to look at that form and agree. Multiplied millions of times.
Anyone making gross sales of $600 (the ebay 'give us your SSN' kicks in at $600 INCLUDING sales tax is not going to solve the debt crisis.
In fact, it's going to cost more than it's going to generate for someone at the IRS to review millions and millions of new 1099K's, and agree that no tax is owed. A higher limit makes sense. It also makes sense to find a better solution so that if you are not a business, you only declare if you made an actual profit. The law wasn't really aimed at $600 eBay sellers. It was aimed at gig workers and people being paid under the table.
The difference with those guys is when they get paid, that is AFTER Uber, Doordash, whomever has taken their cut.
For example, does everyone here declare what they received for their old car when they trade it in? It's pointless (unless you are a business) as you lost money ( a lot of money usually) on it when you traded it in. And spent that money the same day towards a new car. It's still income (proven by the fact you need to give less cash towards the replacement vehicle).
What I've noticed is it's the pro sellers being pro the new changes. Firstly, because they already had to file a Schedule C or something similar, so are used to the form. But also, it's a roadblock to some casual sellers as they don't understand. And those causal sellers (as a group, not individually) affect their sales.
And again, it's not cool to accuse people of dodging taxes when it's highly likely they are not
bonjourami
·2 years ago"Anyone making gross sales of $600 (the ebay 'give us your SSN' kicks in at $600 INCLUDING sales tax is not going to solve the debt crisis. "
Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.
fab_finds4u
·2 years agoI totally agree they probably won't have any tax owed but the law says to report your income and whether you will owe tax remains to be seen. The fact they are dodging reporting means they have not been reporting, thus trying to dodge forking out money to the irs. As that's the only reason you want to avoid reporting.
fern*wood
·2 years agoWhat about all the sellers that applied the same logic to reporting when the 1099k threshold was 20k? It seem obvious they also felt if they sold $19,999. a year, they were below needing to report.
We have reiterated what this threshold actually means so many times, it's starting to be comical. A segment of the population just want to believe otherwise.
richard1rst
·2 years agoActually that was not the point of my WHY. Because of the generous automatic write offs and deductions that the IRS offers without question it is possible, depending on your filing status, to earn TENS of thousands of dollars and not owe a penny in federal taxes.
I am constantly amazed at the number of posters who seem to think that just because they sold $600.00 they are going to get hit with a massive tax bill. See the previous paragraph. And by the way taxes are on PROFITS not sales.
So again I ask WHY would you stop at $600.00?
Something about the nose and the face comes to mind.
reallynicestamps
·2 years agoEbay needs your SSN for your Managed Payments account.
The form will make it easier to work out whether your eBay sales are profitable, or a fun hobby, or a useful tax deduction.
Take the gross amount on the form eBay provides you and deduct all your expenses, including eBay fees, postage paid out, packing materials, and cost of goods. Don't forget any financial losses from failed transactions.
But if you have an MP account, eBay has your SSN already.
And you have to report all income and pay taxes on your profits even if that was only $6, never mind $600.
onefootflipper
·2 years agoYour social security number already exists in thousands of databases. Ebay having that is likely the least important thing you could worry about in your life.
richard1rst
·2 years agoWHY !!!
luckythewinner
·2 years agoNo.
wastingtime101
·2 years agoNo, you cannot delete your SSN from your account once supplied.