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Your payouts are on hold!
I received an email after an item I had listed sold. the email states as follows:
As of Jan 1, 2022, the IRS now requires us to file and send a Form 1099-K to everyone who sells $600 or more.
Since you’ve made $600 or more in sales this year, we’ll need your full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) to send you your 1099-K.
Please update your information so we can start sending your payouts and avoid other account restrictions.
I researched this and see it is indeed a new policy implemented by the IRS. I think it's ridiculous to target small potatoes sellers when huge corporations pay little to no taxes but the taxman is obviously going after every dollar they can.
$600 in sales is a very low amount but eBay is telling me I have to supply my SS number even though I have not reached that lowly threshold. And to add insult to injury, eBay is holding my payout of the item I recently sold until I relinquish my personal data.
I guess eBay has decided to lower the gross sales threshold even lower than the lowly $600 for certain sellers, like myself.
Beyond Frustrated
kh-stanley1
·3 years agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.
Thank you for understanding.
dreamer-garden
·3 years agoI just had this pop-up tonight. I can't tell if my payments are still blocked or not. I don't see where it says anything is on hold. Everything that comes in is still processing, but eBay uses up the bulk of my postage money so I need to know.
chaunceyrj
·3 years agoYep,
So this is how it works now. You originally buy something and PAY TAXES ON IT. Then after a couple years you decide you don't need or want it anymore so you try to recoup some money by selling on Ebay so you sell for a fraction of what you bought it for. Now your item sells and you have to pay taxes on that same item AGAIN! Then you pay for Shipping costs. Then you pay Ebay a seller fee and monthly fees. Now you are asking yourself why you are torturing yourself with with this whole process and you have nothing much to show for any of it. I'm officially done with Ebay!!
bonjourami
·3 years agoYou are confusing sales taxes with Federal taxes, apples and oranges.Sellers have always been required to report their earnings,no matter how small, thats really nothing new.
shado-x
·3 years agoI researched this and see it is indeed a new policy implemented by the IRS
Apparently, not enough. It was legislated by Congress and signed by the President, authorizing it as tax adherence. Would you like to pick which Party did that to you? Why did you vote for them? LOL.
Just add your SS number and get your funds. Then report the dough on your tax return, why is making more money so difficult by filling in a few blank lines on a tax form, gee wiz.
jems-n-junque
OP3 years agoDon't know where I stated anything about Party preference nor am I interested in discussing politics.
Thank you for weighing in
shado-x
·3 years agoYou did by blaming the IRS for "implementing" a policy, when it is Congress that legislates tax policy. You'll figure it out.
jems-n-junque
OP3 years agoIt just didn't seem right for eBay to ask for my SS # when I have not reached the threshold they stated I reached.
Since you’ve made $600 or more in sales this year, we’ll need your full 9-digit Social Security number (SSN)
I've only sold a handful of items and I checked, my sales this year has not reached $600.
I don't come in here very often and was unaware I had to choose my words so wisely or risk being confronted on political viewpoints, but thanks anyway for your helpful reply.
slippinjimmy
·3 years agoLooking at your feedback you must be very close to $600 if not over that amount. Are you including shipping in your total?
jems-n-junque
OP3 years agoYes, I am close. When I add up my sales the total is $597.82 but that is still under the $600 or more in sales this year. And BTW, I only charged shipping on my last sale and yes I included it.
However, when I look at my transaction list, there was on transaction where eBay did not deduct the shipping label I bought from the proceeds of the sale. Instead, they deducted it from my checking account a couple weeks later and it's listed twice. Once as a debit and once as a payout (see below) and if you add the $11.12 to my transactions then it's over $600. But if they're calling the purchase of a UPS shipping label a "sale" I guess I shouldn't be surprised. But the reality is it's a deduction from my account for the shipping label, not an item I sold.
buyselljack2016
·3 years agoso, you feel that eBay should wait until you sell another, by your calculation, $13.31, and the seek the info that they need to comply with federal law?
Would it be ok then?
ms.rodriguez*
·3 years agoIt doesn't matter if you sold 10 dollars here or 600 or 20,000, you are still supposed to report income to the IRS. You do know that you pay taxes ONLY if you made a profit. So if you sold an old item for 20.oo but you paid 50 .oo for it, this particular sale would be aoss for you and you do not pay tax on it. But you are supposed to add up all of your expenses and then deduct that from the total amount of $ that you received. For most small sellers, there will be little or no profit.
Anyway, as others have stated, this law was passed by Congress under the tRUMP administration and became law once Biden took office. So it didn't matter which party you voted for.
Finally, this is LAW on ALL selling platforms in the USA. So if you want to avoid reporting this income, leave the country.
datut71
·3 years agoThe $600 threshold was part of Biden's America Rescue Plan, nothing with Trump.
https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k