As others have stated at this point in time nobody knows what will happen to the 1099 issuance threshold at the Federal level in 2023. There is also no telling what the individual states may do with regards to establishing their own 1099 issuance threshold during 2023. At present New York follows the Federal level which is currently $20,000 and 200 items since the $600 threshold was delayed a year.
There are several states that already have the lower thresholds and are realizing the increased tax revenue. I believe there are several others that take effect for the 2022 tax year, you may want to check your state law for 2022, and I would not be surprised to see a lot more states establish their own threshold levels in the wake of the Federal delay and unknown, similar to what the individual states did with regards to sales tax in the wake of the Wayfair vs. South Dakota Supreme Court decision.
It should be inconsequential with regards to whatever happens since you should have always been reporting income regardless of whether you received a 1099 or not.
"I sold an item for $700 in 2023 but I got $598.98, will I get a 1099?"
Maybe. To paraphrase Ms. Mona Lisa Vito, that's kind of a trick question. Nobody can answer that question definitively, not today, January 12, 2023, not knowing what the IRS might do concerning the dollar limits for 1099-Ks.
During 2022, all of us sellers here on eBay were operating with the knowledge that eBay was required to send the IRS (and us) a 1099-K if we sold more than $600.00 of <stuff>. Until December 23, 2022.
With only eight days left in 2022, IRS announced, again, paraphrased, "Yeeeeah, no; we're not going to start requiring companies like eBay to start reporting at that low dollar-amount limit until later." I truthfully do not know if that announcement said that low $600 limit would start up again in 2023. BUT -- they changed the limit during 2022; seems at least possible they could change the limit for 2023 and in the future.
I suggest you accept that income tax is a part of our lives as Americans. And that you gotta tell the IRS all the income you have received, regardless of whether you receive a slip of paper confirming how much income you have received.
You are still supposed to report any earned income whether you get a 1099 or not. Remember, there are more expenses with a sale than just the ebay fees and the shipping fee. You have the cost of the items, shipping supplies, printer ink, etc. Even the cost of printer or laptop used for selling is tax deductible (needs to be pro-rated since you can use it for more than a year.
The threshold for issuance of a 1099-K at the federal level for 2022 (taxes filed in 2023) is $20,000 and 200 transactions. I believe New York follows the IRS in this regard, but you'll want to confirm that for yourself rather than take my word for it.
The threshold for sales in 2023 may be $600, or it may be something else. We'll have to see what, if anything, Congress does about it. Stay alert and make sure you follow the news regarding this topic.
Yes (you mean a 1099; if $600 were still the threshold, yes you would have (or if your state, Missouri, Calif require one be sent over $600 (and there may be other states) then you will get one.
The amount is the 'gross sale' (Item Plus Shipping (taxes charged to customer are excluded). You then to 'write off' the Shipping Cost and the Final Value Fee (amongst other things, ie. cost of the item, if you're a business vs. hobby seller etc.)
The 1099-K would include the entire $700, plus any amount that the buyer paid for shipping and handling. So you will get a 1099-K for 2023, unless the federal threshold is changed AND you don't live in a state that has its own, lower threshold.
dbfolks166mt
·3 years agoAs others have stated at this point in time nobody knows what will happen to the 1099 issuance threshold at the Federal level in 2023. There is also no telling what the individual states may do with regards to establishing their own 1099 issuance threshold during 2023. At present New York follows the Federal level which is currently $20,000 and 200 items since the $600 threshold was delayed a year.
There are several states that already have the lower thresholds and are realizing the increased tax revenue. I believe there are several others that take effect for the 2022 tax year, you may want to check your state law for 2022, and I would not be surprised to see a lot more states establish their own threshold levels in the wake of the Federal delay and unknown, similar to what the individual states did with regards to sales tax in the wake of the Wayfair vs. South Dakota Supreme Court decision.
It should be inconsequential with regards to whatever happens since you should have always been reporting income regardless of whether you received a 1099 or not.
soh.maryl
·3 years agoSo you don't plan to make any other sales this year?
monroe67
·3 years ago"I sold an item for $700 in 2023 but I got $598.98, will I get a 1099?"
Maybe. To paraphrase Ms. Mona Lisa Vito, that's kind of a trick question.
Nobody can answer that question definitively, not today, January 12, 2023, not knowing what the IRS might do concerning the dollar limits for 1099-Ks.
During 2022, all of us sellers here on eBay were operating with the knowledge that eBay was required to send the IRS (and us) a 1099-K if we sold more than $600.00 of <stuff>. Until December 23, 2022.
With only eight days left in 2022, IRS announced, again, paraphrased, "Yeeeeah, no; we're not going to start requiring companies like eBay to start reporting at that low dollar-amount limit until later." I truthfully do not know if that announcement said that low $600 limit would start up again in 2023. BUT -- they changed the limit during 2022; seems at least possible they could change the limit for 2023 and in the future.
I suggest you accept that income tax is a part of our lives as Americans. And that you gotta tell the IRS all the income you have received, regardless of whether you receive a slip of paper confirming how much income you have received.
ms.rodriguez*
·3 years agoYou are still supposed to report any earned income whether you get a 1099 or not. Remember, there are more expenses with a sale than just the ebay fees and the shipping fee. You have the cost of the items, shipping supplies, printer ink, etc. Even the cost of printer or laptop used for selling is tax deductible (needs to be pro-rated since you can use it for more than a year.
pburn
·3 years agoThe threshold for issuance of a 1099-K at the federal level for 2022 (taxes filed in 2023) is $20,000 and 200 transactions. I believe New York follows the IRS in this regard, but you'll want to confirm that for yourself rather than take my word for it.
The threshold for sales in 2023 may be $600, or it may be something else. We'll have to see what, if anything, Congress does about it. Stay alert and make sure you follow the news regarding this topic.
stainlessenginecovers
·3 years agoYes (you mean a 1099; if $600 were still the threshold, yes you would have (or if your state, Missouri, Calif require one be sent over $600 (and there may be other states) then you will get one.
The amount is the 'gross sale' (Item Plus Shipping (taxes charged to customer are excluded). You then to 'write off' the Shipping Cost and the Final Value Fee (amongst other things, ie. cost of the item, if you're a business vs. hobby seller etc.)
nobody*s_perfect
·3 years agoThe 1099-K would include the entire $700, plus any amount that the buyer paid for shipping and handling. So you will get a 1099-K for 2023, unless the federal threshold is changed AND you don't live in a state that has its own, lower threshold.
chrispass918
OP3 years agoI didn’t mean to put w2 in the title