SELLERS ONLY! EBAY sending out 1099-K is ABSURD + gonna waste EONS of time for sellers @ tax time
REAL SELLERS ONLY NO ANNOYING PEDANTIC moderator/BOTS Your comments are unwanted and frankly offensive. To the real sellers only: Gods chosen. A 1099-K turned in to IRS gonna make you reconcile EVERY sale U had. You go over the 5K You sell bunch cheap stuff, say 250 transactions for 6K. This going to IRS and you have to go over all and come up with a COST of EACH item. Ebay gonna furnish GROSS PROFIT they huge cut and shipping like you see on seller hub for net sales. BUTTTTTT I ain't got a clue what I paid 15 yrs ago for something. Only things that I know profit on is, FREE AKA things given to me and something recently bought and can see what I paid.
DO the IRS really thing you is gonna tell truth??????? U win $100 on Superbowl bet that taxable. U played poker 2 times and won $60 report. You grew and sold tomatoes from you backyard for $$$
This may shame a few into reporting small profits so reckon it be a small profit to IRS as well as a big job
ALSO for all the Little Goody 2-Shoe bragging about they report to IRS why would they not donate those profit to charity???????????? better giving to Gov to squander
worldcoinauctions
·2 years agoLOL, it doesn't matter if I get a 1099 or not. I keep track of everything I buy, that is all expense. I keep track of everything I sell. I keep track of what I get from ebay to my bank account (net ebay sales since I buy postage on the site) all my other expenses (rent, supplies, electric, show fees, advertising yada yada). Sum it all up and give it to my accountant.
You know you don't have to account for each item. I do an inventory and that is what is left over, but it is a sum of value, not a line by line of what exactly I have. Some stuff sells at a loss, that factors in but I don't track it specifically. Some of you need a class in basic accounting for small business.
Unavailable member
·2 years ago@bonjourami
... ya I forgot where I was for a minute.....
"look the other way" is the new American norm.....
"not my problem- not my job" is another modern trend....
people had ethics and morals years ago but hey... it's "who cares" now.....
chapeau-noir
·2 years agoYou might want to review history - there is nothing new under the sun.
mam98031
·2 years agoThese sayings and/or responses have been around for decades. Nothing new in any of the sayings. I've experienced people that live by those sayings for decades.
albertabrightalberta
·2 years agoWhat amazes me more than the OP's continual multiple threads and rants about 1099K forms and how upset she is to have to claim her ebay income is the fact that 48 hours after being posted and multiple reports on post #9 , that post is still up giving step-by-step instructions on how to fudge numbers, cheat on taxes, evade taxes, get friends and relatives to lie about prices of items, getting fake receipts, etc.
Why aren't the mods removing that post?
mam98031
·2 years ago@albertabrightalberta
It is gone now.
Unavailable member
·2 years ago@mam98031
...glad to see the post with step by step instructions on tax evasion was finally removed....
As you know, my post on notifying the IRS was removed.... I have read thru the entire Community Guidelines and have not found where my post actually violated anything.
Can you provide a specific link or cut and paste the actual guideline that was violated?
TIA
bonjourami
·2 years agoI expect Khoros saw your post as 'baiting', in other words, a threat of what could be done to the op.
golfingaddict
·2 years agoI don't think it is a secret that anyone can report a suspected tax cheat, in fact, the IRS rewards the person that reports with 15-30% of any recovered monies.
That is fact, not a threat and not an advertisement and not even a suggestion of anything.
eBay is fighting the $600 number. They don't want to make it difficult for the occasional seller and in particular the seller that is selling off a few items that they have accumulated over the years. I have mixed feelings over it. I think part of my concern is that there appears to be some sellers who will sell just up to whatever amount that the IRS/government sets, and then stop and wait until the next year to sell. Anyone that has frequented this board for the last 4-5 years have seen many cases of this.
That is tax evasion and has nothing to do with people selling their children's outgrown clothing or their unneeded items when they are downsizing.
The OP has some valid complaints between the lines. For those of us with established businesses, we know how to track expenses and income and fill out the schedule C (etc) If you do not have all of that experience I suspect it is quite daunting to receive a 1099-K to report your income and your expenses for items that you acquired over the years or outgrown or got tired of.
This could potentially have an impact on eBay. Someone downsizing or selling a collection or selling their children's outgrown items and toys will not use eBay to sell in fear of taxes. This would certainly limit what is available for sale on eBay and could potentially change the eBay landscape.
That could hurt all of us.
evry1nositswindy
·2 years agoThe age of the item doesn't matter when coming up with a value. Purchase items at auctions and you get a receipt. If it's a garage sale item, write down the price. If it's an item from your home, use the donation value from Goodwill as a price. Cost of goods is calculated by you. I agree with @tsme35 -- even though I don't make much, it adds to my income and will raise my social security (whether it is there or not when I retire is another story!)
It is the right thing to do and I am an honest person. Questioning it makes others question your character. Character is what you do when nobody is watching. Except...the IRS is watching. I read about others who report eBay sellers to the IRS, as there is a reward. Better hope those people don't read your thread and the others who chimed in in agreement.
babsklassykloset
·2 years agoFirst of all, we are ALL God's chosen people. What each individual does with that is up to them. Also, if you really believe that you are among God's chosen why would you expect anyone to think it is okay for you to steal?
Not paying taxes is just that, so the fact that you don't like it doesn't make it right. You need to re-think your intentions and so some serious soul searching instead of ranting about doing what you KNOW is the right thing to do.
bonjourami
·2 years ago"ALSO for all the Little Goody 2-Shoe bragging about they report to IRS "
Doing the right thing and obeying the law makes you a goody two shoes? Not where I come from.
mam98031
·2 years ago@rosemary6525
... comments are unwanted and frankly offensive.
Then why do you insist on continuing to come back every few days to engage this subject again?
A 1099-K turned in to IRS gonna make you reconcile EVERY sale U had.
Because it is a form created and required by the IRS for certain circumstances.
You go over the 5K You sell bunch cheap stuff, say 250 transactions for 6K. This going to IRS and you have to go over all and come up with a COST of EACH item.
The 2023 thresholds on this form was 20,000 and at least 200 transaction. The IRS is CONSIDERING a $5,000 threshold for 2024, but it has not yet been decided.
Ebay gonna furnish GROSS PROFIT they huge cut and shipping like you see on seller hub for net sales.
This is one of the misunderstandings you have. Ebay does NOT report "gross profit" for ANY seller. They simply do not have access to all the information to determine this. Not all seller's costs are represented in Ebay records.
Besides the 1099K form reports Gross Receipts which is NOT the same as gross profit. The form reports all incoming money into the seller's account by buyers without regard to shipping costs, refunds, fees paid to Ebay, etc. You have to reconcile the form to arrive at your net taxable income by subtracting all your expenses from the Gross Receipts amount.
BUTTTTTT I ain't got a clue what I paid 15 yrs ago for something.
That is a problem many sellers are faced with. I did provide you with some links on one of your darn threads to help you figure out how to do this in a way that IRS accepts.
DO the IRS really thing you is gonna tell truth???????
Many of us do as we are aware of how bad it can get and how expensive it can get if the IRS audits you and find that you haven't been reporting all your income.
Some online sellers hid their income from IRS for years, which is exactly why the IRS created the 1099K in 2012.
This may shame a few into reporting small profits so reckon it be a small profit to IRS as well as a big job
ALSO for all the Little Goody 2-Shoe bragging about they report to IRS
This is a big assumption on your part. While we are required to report all our income, that doesn't necessarily mean you Tax debt will increase. For a large number of small and casual sellers, the actual profit [after all costs are deducted] doesn't make any significant impact to the income taxes owed.
chapeau-noir
·2 years agoI'm a rock-throwing radical Goody 2-Shoes, with the mad skillz of fourth grade math.
dbfolks166mt
·2 years agoI'm a rock-throwing radical Goody 2-Shoes, with the mad skillz of fourth grade math.
Love it.
chapeau-noir
·2 years agoI spend all of about an hour a month reconciling my taxes for that month. At the end of the year I plug it into the tax software. I don't pay an accountant for anything (though I do get the software).
BTW, if the IRS catches you with non-payment of something (in my case it was an investment that had cashed out but I didn't get the notification because my address change hadn't propagated through the investment company's system) they can be pretty darned starchy.
If you find you have a problem and contact THEM, they are as helpful as can be, polite and courteous. So yeah, best to stay clean.
chapeau-noir
·2 years agoThere are nights when the dogs are silent and the moon howls.
ckimodog
·2 years ago@chapeau-noir
Or the cats...they don't get along very well with the racoons. ðŸ˜
Unavailable member
·2 years agothat was only a suggestion to show how easy reporting fraudsters can be... relax, i ain't the snitch around here....
mam98031
·2 years agoIt was a suggestion in violation of the Community Policies. These threads are moderated, it doesn't mean anyone "snitch[ed]" on you.
https://community.ebay.com/t5/About-the-Community/Community-Guidelines/td-p/26164369
Unavailable member
·2 years agoi wasn't suggesting anyone here snitched on my post... i was meaning i had no intention of reporting the op to the IRS.... OK??????
as for the forum rules being violated ... well sorry about that.... i'm a rebel lol
everyone has trouble trying to reel me in
redlinear
·2 years ago@rosemary6525
I see your issue.
Try this. For every old, personal item that you sell on eBay (and ONLY those items). Just write the total cost that each sold for...AS they sell. Make a list and every time an older personal item sells, write down the TOTAL the buyer paid on that list (less the sales tax).
1) Coffee Maker $22.50
2) Stuffed Animal $13.50
3) Jeans $18.00
4) Just like that
At the end of the year, give that to you tax preparer and tell them those were personal items, sold for less than what you paid. They'll know what to do.
You can't go back and use the prices you paid.
Just don't lie to the IRS. You can, and you might get away with it, or you might not.
Appearance is important. If the IRS ever questions it, somebody might need to see that list. If there's 10 coffee makers on there, or 100 pairs of jeans? You probably be in trouble because that's not "normal".
They only time I've ever been in hot water? They questioned my (eBay Only) business by comparing it to other businesses that sold on (eBay AND local).
They wondered why I didn't report all my local sales. Of which I had none. And had a hell of a time convincing them of that.
But, they finally let it go. Probably because I wasn't dripping in gold jewelry and driving a new Ferrari.
The IRS may be relentless, with no room for common sense. But, they are not idiots.
Just don't lie to your accountant and generally, you'll be fine
itsjustasprain
·2 years agoHow old are you?
baantiques
·2 years agoThose are things you need to be doing ANYWAY.
The only difference here is Ebay is sending paperwork to the IRS, so they know how much you sold. If you were selling the same amount before and not declaring your income, you were committing tax fraud.
toysaver
·2 years ago"gonna waste EONS of time for sellers"
Depends on how you value the freedoms paying taxes gives citizens in the USA. I usually set aside an entire weekend in the dead of winter to complete the project. If it's bad weather all the better. I go for simple meals and minimize distractions. I have small monthly or quarterly chores to organize paperwork that makes it easier.
We are all lucky to be American and should never take it for granted.
tsme35
·2 years agoSame here, end of each month I do up my paperwork(sales, inventory, mileage etc), every quarter I send in an estimated tax check, mid year I drop off the paperwork with my accountant and again 1st week of Jan. to go over the prior year. My accountant doesn't charge me an ton because I've done most of the work and I get a return every year.
The other thing you have to consider is your yearly income and life time income when it comes to buying anything on credit. Most won't take your word I made this income without proof, plus if you don't pay into FICA, there won't be any SSI when you retire.
I started selling before there was a 20K-1099 requirement but I wanted to buy a car, nope, no proof of income. Even when though I did keep records, there was no real income proof. I talked to my now accountant, he pointed out that if you don't contribute to FICA, there won't be any SSI to retire on.
rosemary6525
OP2 years agoWOW you got a Kigillion lures for sale & almost perfect FB minus 1 $^&** Some vintage how world u come up with profit or loss on something so old?????????????
kensgiftshop
·2 years agoMost sellers make their profit when they obtain the items.
tsme35
·2 years agoYep, alot of yard sales, flea markets and FB. Its not that some are vintage or not, its what I paid for them. I keep records of what I paid for them and where each month, get a total inventory for the month. At the end of the year I total what I bought and what I have left. I still do it old school, pen and paper, then give to my accountant. What my accountant charges is cheaper then paying for a online program and he knows all the rules and short cuts. Since I work out of my home, I can write off half my bills for the business since I use my whole basement.
I'm in MO and our 1099 cut off is $1200, not $5k or 20K but I've been report income for the last 17+ years so I'll have money put in my SSI to retire on. AND on top of all the work, I'm disable but ebay lets me work around my down times. Disability wouldn't cover my house payment and I won't let it get the best of me, I love my kids but no way do I want live with them again lol.
You've heard from other sellers saying you have to pay taxes, its not that they want to either but that's life. If I wanted to run ebay as a side hassle, there's a way but I couldn't buy a house, car or even get loan without some kind of income on paper.
monica-sells
·2 years ago"...after the show, don't forget to tip your servers....."
the_fancy_fox
·2 years agoI don’t have a problem with it. I report my income every year and not just from ebay. It is the law.
From selling items I inherited to items I bought for resale. I find it no big deal anymore.
heckofagame
·2 years agoYou should be hearing from the IRS soon. Please gather all necessary documents and receipts for the past 5 years. Having the proper documentation will speed up the audit process.
bonjourami
·2 years agoProbably not the smartest move to sound off on a public forum that you havent been declaring your Ebay income sales for nineteen years.
P.S. Looks like you sell an awful lot of new items that are 'given to you'.
mam98031
·2 years agoOH NO! We should not be doing that around here. No one from the forums here should EVER purchase something from a seller they disagree with about something in order to cause them harm in ANY way.
It is NOT our job to enforce IRS rules. And you have no right to do something like this unless you are looking to get your own account into trouble.
While the OP seems to be very misinformed, you have NO way of knowing what you said. You are ASSUMING they haven't declared all their income.
Anyone that supports this kind of action is wrong as well and way off base. This is something that should NEVER be done here. NEVER !!!
luckythewinner
·2 years agoEbay gonna furnish GROSS PROFIT
No they will not. The 1099-K reports the gross amount of payments processed. eBay makes no attempt to calculate your gross profit because they do not have that information.
DO the IRS really thing you is gonna tell truth? This may shame a few into reporting small profits so reckon it be a small profit to IRS as well as a big job
It will require everyone who gets a 1099-K to account for that income on their tax return. Whether those sellers choose to commit tax fraud is up to each seller.
ALSO for all the Little Goody 2-Shoe bragging about they report to IRS why would they not donate those profit to charity?
Why would I donate my profits to charity? I sell on eBay for the same reason I have a job - to make money for me.
golfingaddict
·2 years agoPlan for providing the IRS your income and your expenses. It does not have to be complicated. You have many months to prepare for filling out the IRS forms. You can even plan and prepare your record keeping based on those forms and what the IRS needs and expects you to declare.
Bring along a notebook when you go to garage sales or buy on Craigslist or other purchases that are harder to track when you don't get a normal receipt. Record everything you buy. If someone gives you something, record that as well.
Keep track of things like mileage to the post office and thrift stores and garage sales. Keep receipts of everything. Use an expanded file folder if you need to. Run monthly reports to keep track of eBay details.
It may seem daunting if you wait until the 1099-K lands in your lap but if you start now, you will have all the information you need when you do get that form and have to file taxes on all your income.
Just so that you understand, everyone that receives incomes has some expectations that they may have to pay taxes on that income.
Some eBay sellers have felt immune from declaring their income because that income has never been reported to the IRS. That wasn't the case, but you now have a heads up that it will be reported.
Yelling at sellers here will not change anything. Do your due diligence and prepare now for next year's taxes so that it is not overwhelming when you get that 1099-K.
And just a head's up. I've never had to reconcile each and every item in detail that I sold on eBay. I report Income (money in) and expenses (money out)
bonjourami
·2 years agoI would say your own post is 'pedantic'.
PEDANTIC Definition & Meaning
evry1nositswindy
·2 years agoI fill out my Schedule C on my own and come up with a net income for my items sold on eBay. I then take our taxes to a professional. Yes, I only make a small amount, but my tax preparer does not question why I am filling out the form. Why? Because it's the law. Break the law and you will get caught and they can go back at least 3 years (or longer) if they suspect you haven't been filing when you should have been. I follow the law and am a real seller (no interest in being chosen by 'god'). You don't follow the law. Deal with the consequences.
jerseyboymusic
·2 years ago@rosemary6525
God's chosen???
Romans 13:7
Matthew 22:19-21
Luke 20:22-26
Those come to mind.
kensgiftshop
·2 years ago@rosemary6525
I'm guessing you're one of them that hasn't been reporting your income like you are supposed to be doing.
If you had been, it wouldn't be a big deal.
aeparts1
·2 years agoI find it amazing that people continue to reply to post like this.
chapeau-noir
·2 years agoI had no idea that I was one of God's Chosen - ME, a heathen Deist! 😲
But, sorry - God's Chosen still have to pay taxes - well, unless we're super-rich or in the religion bidness.
mam98031
·2 years agoMy guess is that you did not get people posting on the other threads you have created in the last couple of weeks that supported your way of thinking much. Not sure why you keep coming back, it is likely you will hear for at least some of the same people that were on your other threads on the SAME subject.
4-9-24
https://community.ebay.com/t5/Selling/TAXES-2024-amp-2025-5K-then-only-600-for-Calendar-YEAR/td-p/34399070
4-10-24
https://community.ebay.com/t5/Selling/IRS-Reporting-in-up-coming-years-Gonna-make-eBay-lose-big/td-p/34400861
We all are suppose to report our income to the IRS. There is NO minimum threshold.
https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-1099-K/ba-p/33141019
https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses
https://www.irs.gov/businesses/gig-economy-tax-center
https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
yuzuha
·2 years agoMost of us have already been doing that for years BECAUSE we're "real sellers."
ekmadonna
·2 years agoAll I can say is WOW!!!
robbie31415
·2 years agoI get it you might actually have to report money earned because you can't hide it anymore.
Sucks, but join us real sellers who already have to.
asset_liquidators
·2 years agoYou keep posting this over and over hoping for a different result. Again, it doesn't matter if you get a 1099 or not, and it doesn't matter if you had a $100 or $1 million in sales, you were ALWAYS required to claim your sales on your taxes.
The 1099 does not waste "eons of time for sellers". It takes no more time when filing taxes, literally NONE.
No one is "bragging" about reporting income on taxes. It is just what you have to do.
I actually can't believe you are posting repeatedly in a PUBLIC FORUM bragging about how you have been evading taxes for the last 19 years you have been on eBay. That is just crazy.
dbfolks166mt
·2 years agoYou post about this same subject at least once a month. Not sure where the question or the point is in this most recent posting.
Unavailable member
·2 years agoIf you have a problem with having to report your earnings selling on eBay I suggest you talk to your congressman...reporting your earnings is the law, you don't want to report your earnings it's tax evasion.
inhawaii
·2 years agoDIsregard what @albertabrightalberta says.
I think he might be one of those annoying pedantic moderator bots. 😉
janet9988
·2 years agoFrankly THIS is OFFENSIVE.
albertabrightalberta
·2 years agoI'm not sure why you came here if you don't want to hear from us with honest opinions and disclosures.
Is there a question in your post?
If you haven't been claiming your payments and deducting your expenses, that's on you but I guess that's what you're upset about. Now you have to calculate your profits (or losses). Thing is, you may not even have a profit but without records, you will have profits without the offsets.
Sorry. I can't feel bad for you.
strugglinlikeyou
·2 years agoI don't pay taxes on my eBay earnings because I am impoverished. Standard deduction equals no tax due.
I get food from a food bank.
Take a look at AT&T tax windfall of $42 Billion and then tell me it is just to require struggling people to nail down every expense.
oaklandmaryland
·2 years ago1. there are so many instances where receipts are not possible. 2.I already paid taxes on the items bought and now IRS wants me to pay taxes on items when they sell. Ridiculous!!!
golfingaddict
·2 years ago1. Keep a log with you at all times. A paper notebook will work or create a file on your phone. Track what you bought and how much you paid. eBay sellers have been doing it this way for many, many years.
2. Tax you pay when you purchase an item is sales tax. Tax you pay when you sell items is income tax. The two are completely different.
I'm sorry that no one ever taught basic finance courses in high school or middle school. Things that should be required are things like "taxes" "compounded interest" "debt" "budgeting" "retirement" among other things.
chapeau-noir
·2 years ago@oaklandmaryland I've cleared some small estates - 'reasonable value' is what is used for all of that stuff that has no receipts.
There's a difference between sales/use tax and federal tax - you have never paid federal tax on those items you sell - you are paying tax ONLY on your profits, and that is after you take all of your legal deductions, which are many.
mam98031
·2 years ago@oaklandmaryland
Paying state sales tax is NOT the same thing as Federal income taxes. Don't confuse the two.