I put off Managed Payments with Ebay until September 2020. I did my best to make sure that I did not reach the threshold of $20,000 with 200 transactions for 2020. I had a total sales of approximately $12,000 processed through Paypal so my goal was to keep total sales through Managed Payment under $6,500 which allowed a little bit of room.
I received a 1099K for sales from September through December 2020 totally just over $5,000. I called Managed Payments about 3 weeks ago. I was told to make sure I did not go over whatever amount would put me over $20,000 for January through August 2020. The representative said once I verified that to call back and they would make a correction to the 1099K. They never said anything about there being a different threshold for Maryland residents. I called today to confirm that I did not exceed the $20,000.
This time I was told by a different sales agent that my sales of $5,000+ was reported because I had sales that included $600 or more in sales tax collected by Ebay!?!?
I am not only ticked off but confused. I asked when did this go into effect and the rep stated a date in 2021. Well, I pointed out that I was talking about 2020 and his response was that it was retro!?!? I immediately ended all fixed auctions and once auctions end I am not sure where to go to get rid of my inventory.
None of this makes sense. I had intentional kept my sales under the amount because I have a hard time keeping up with paperwork. Since I was determined not to exceed the threshold in 2020, I definitely did not keep any records. I
I don't know what is right. I never received anything from Paypal. When I went into my paypal account, it does not show an option for a 1099K.
Does any know what is up? Can anyone help clarify what the heck is going on or what is right or wrong?
Many thanks
