Why did I receive a 1099-K if my sales were less than $20,000?

[greenweedz]

My eBay gross sales in 2022 were under $2,500, so I was pleased that the $600 IRS reporting threshold will not take effect until 2023. However I just received a 1099-K in the mail. Why did eBay send me this if I don't need to report it? Thank you.

-- Barb 

[house*of*paws]

Hi @greenweedz 

Perhaps it's your state that has a lower threshold.

BTW, there is no 'reporting threshold'.  We are supposed to report ALL our sales ... actually were supposed to be doing that all along.

[rock.star]

It is your state that requires the $600 threshold. 

[kensgiftshop]

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@greenweedz wrote:

Why did eBay send me this if I don't need to report it?

Who says you don't have to report it?

You're supposed to be reporting your income 1099K or not.

[greenweedz]

Thanks for your answer. Maybe it is my state; I'll look into that.

As for "reporting threshold", well, quoting directly from eBay's "2 Minute Article - eBay And Form 1099-K":

" . . . we'll provide you with Form 1099-K by January 31 each year if you've received payments above the minimum IRS reporting thresholds in the previous calendar year . . ."

I took that to mean the taxpayer doesn't have to report that income to the IRS, but perhaps it means something else?

[greenweedz]

Thank you for your answer. Yes, I would agree that we're supposed to report all our income; but quoting directly from eBay's "2 Minute Article - eBay And Form 1099-K":

" . . . we'll provide you with Form 1099-K by January 31 each year if you've received payments above the minimum IRS reporting thresholds in the previous calendar year . . ."

I took that to mean the taxpayer doesn't have to report that income to the IRS, but perhaps it just means eBay isn't required to send a 1099? -- which they did anyway. Hence my confusion.

Thanks again --

-- Barb