The Internal Revenue Service has announced a one-year delay of the new $600 tax reporting threshold to help ease the transition to the new reporting requirement for taxpayers, tax professionals, and online marketplaces.
As a result, for tax year 2022, only eBay sellers who: 1) exceed the reporting threshold of $20,000 and 200 transactions, 2) had backup withholding applied in 2022, or 3) are residents of states that have a lower reporting threshold will receive a Form 1099-K.
The delay does not change your income tax reporting obligations.
Background—how we got here
The American Rescue Plan of 2021 lowered the Form 1099-K reporting threshold from $20,000 and 200 transactions down to just $600 and a single transaction. The lower threshold would have required all online marketplaces, including eBay, to issue millions of Forms 1099-K to casual sellers of used personal goods, which generally do not generate taxable income.
We’ll continue to advocate on your behalf
The delay of the new $600 tax reporting threshold follows more than a year of eBay Government Relations advocacy on your behalf. We want to thank members of our eBay Main Street community who made your voices heard on this important issue. While a one-year delay is welcome news for millions of online sellers, we’ll continue to advocate for Congress to enact a permanent solution to reduce confusion and prevent burdensome and unnecessary reporting requirements in the future.
We’re giving you the resources you need to meet your tax filing requirements
To help you to navigate your tax responsibilities, this January we’ll offer a convenient guide to help you understand which reports you’ll need to file your taxes. Our new guide walks you through where to download your Form 1099-K report, as well as refunds and expenses on eBay.
In addition, eBay and TaxAct®, a leading DIY tax preparation service, have partnered to help you understand your tax obligations. TaxAct’s Tax Information Center for eBay Sellers offers expert articles, blogs, tips, and insights that may be relevant to your unique situation. You’ll also find a 5-point tax preparation checklist that will help ensure that you’re compliant.
Disclaimers:
eBay and its affiliates do not provide legal, tax, or accounting advice. This material is being provided for informational purposes only and is not intended as, and should not be relied upon for, legal, tax, accounting, or other professional advice. Please consult your own legal, tax, and accounting advisors for advice specific to your situation. All TaxAct offers, products and services are subject to applicable terms and conditions.
TaxAct Xpert Assist is available as an added service at no charge for TaxAct’s online, consumer-prepared 1040 and sole proprietor products. Service hours limited to hours of operation and by expert availability. Some tax topics or situations may not be included as part of this service. View full TaxAct Xpert Assist Terms and Conditions.
Learn more about changes to the IRS minimum reporting threshold in 2022, and read 1099-K and Tax Withholding FAQs.
We'll continue to provide you with updates regarding your tax obligations.
As always, thank you for selling on eBay.
The eBay Team
