1099K beginning next year

[kozmo_kramer]

Look for a big slump in Ebay business next year, next year 2022 Ebay will be required to send sellers a 1099K to all sellers with sales > $600.  In the past Ebay would send you a 1099 after you reached 20K in sales and 200 sales.

With Ebay sticking it to sellers with managed payments how many sellers are going to stick around after this year?  Almost 13% ebay gets and the federal, state and local taxes.  

[downunder-61]

There are many threads about this already, and sellers have always been required to report eBay income to the IRS when doing your yearly taxes.

[itsjustasprain]

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@kozmo_kramer wrote:

Look for a big slump in Ebay business next year

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I doubt that very much. Sellers who are doing anywhere close to 20K are not likely to want to stop and those making less will not even notice. Besides - you are supposed to be reporting that income anyway and this way you avoid trouble with the IRS if they decide to audit you later on.

You might make enough for eBay to report in gross income on the 1099 but then you file your deductions and expenses against that at tax time. I have done that in my selling account for many years and it is nowhere near the trauma that people make it out to be.

[forward-motion]

LOL you think it’s ebay. If you voted Democrat this only one of the many screwing you will get. 

[chapeau-noir]

Tax evasion is a political issue?

[toysaver]

The IRS will probably ask for a list of those that jump ship and check their back taxes.

[kensgiftshop]

@kozmo_kramer 

The ones that will leave are probably the same ones that don't claim their income on their taxes.

The rest of will be sticking around.

[kozmo_kramer]

Or when they figure out how little they make in 2022 they bail in 2023.  It will even the playing field to those of us that have to pay taxes.

[kozmo_kramer]

I think he meant that Biden passed down the rule.

[forward-motion]

I wasn't saying anything about tax evasion. People come on here and think ebay wants to screw them somehow by making them pay taxes, when it is a political issue now that they changed the law. My point is it's not ebay making you pay your taxes. 

[nickelsanddimes2015]

I'll be sticking around. I make 6 figures and claim this as my income so it is what it is. I understand small sellers don't like it but big sellers have already be doing this for a lot of years.

[popblox]

"Look for a big slump in Ebay business next year, next year 2022 Ebay will be required to send sellers a 1099K to all sellers with sales > $600"

I don't understand this concept. Is this how it's going to go down?

Bill needs income to pay rent.

Bill has to sell his card collection valued at $800 to get the money.

Bill decides the best place to sell his collection is on eBay.

Bill finds out that, unlike illegal cash transactions under the table, he'll have to pay taxes on it if it sells on eBay.

Bill is so irate about having to report this income, he chooses to get evicted instead.

I doubt it.

[chapeau-noir]

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@forward-motion wrote:

I wasn't saying anything about tax evasion. People come on here and think ebay wants to screw them somehow by making them pay taxes, when it is a political issue now that they changed the law. My point is it's not ebay making you pay your taxes. 

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It's hard to deduce what else people are wanting to do when they don't want to report their revenue.  Blaming one party or another really isn't relevant.

[buyologist-3]

I understand everything but I want to say how much my heart goes out to the people who use ebay to supplement their income who have zero knowledge of the upcoming change.  There's less than 1% of all sellers here or on ecommercebytes and when this hits it'll shock them.  Biden made a big deal about taxing the rich and corporates, but this, not so much, so when their income takes this hit, with inflation and rent hikes with no limits, higher groceries, etc. how are they going to cope?  How many tents can they sell?  Where to pitch them?  Well, ebay has always made noises they want the site to be less "homespun", so this'll be the big chance!  Only the biggest and those who like math and taxes 'n stuff will survive.  Retirement is gooood......   

[karthok.of.daolodus]

it's not that complicated.  ppl need to be responsible for what they are doing.  if they sell on a site they need to keep up with what is going on with that site and not stick their heads in the sand.  there is no excuse.  if ppl can file taxes, they can figure out to do taxes here - i'm a minimum wage slave and even i could do my taxes here when i sold my mite and yeah, i claimed them.  ppl are not so helpless and feeble smh.