SSN for managed payment

[moff-80]

When I registered for managed payment, eBay just asked for the last 4 digits of SSN. Will eBay ask for full tax ID (SSN or EIN) when I reach 200 items/$20,000 threshold?

Thanks

[kensgiftshop]

@moff-80 

Yes, if they have to issue a 1099k, they will need your full SSN.

[itscalledapostingid]

I would assume if you successfully registered for Managed Payments they already have everything they will need to send a 1099. The threshhold is lower in some states too.

[hurryagain]

@moff-80 

Just be happy that they are only asking for the last 4 of your SSN.  For a large portion of us who were forced into registered for MP earlier in the year and all of the previous years, we had to give our FULL SSN...the w-h-o-l-e thing.

...ugh...

[bonjourami]

In many states, the threshold is now $600, so be aware of that.

[moff-80]

Starting 2022, all states' threshold will be lowered to $600.

[incrediblefinds199]

They just asked me today for my full SSN at first it was just last 4 

[hurryagain]

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@incrediblefinds199 wrote:

They just asked me today for my full SSN at first it was just last 4 

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@incrediblefinds199 

They are probably expecting you to hit that 1099 threshold this year.  Remember...they go by your GROSS sales which included your eBay fees and shipping charges,  those things are considered part of your sale so it is tallied onto your total sales and if you hit that 2000/$20K limit, you will be given a 1099 at the end of this year.

[Anonymous]

From IRS site. Ebay is trying to fleece it's customers again.

Enough "

• Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.

NOTE: The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network;"

[hurryagain]

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@Anonymous wrote:

From IRS site. Ebay is trying to fleece it's customers again.

Enough "

• Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.

NOTE: The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network;"

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...Um...

MP is processed by Ayden - I would think that Ayden would be considered a third party processor.  I believe that the reportable amount is based on the gross sale which would include those shipping fees.

And I was wrong about the amt of transactions...only 200 instead of 2K.  So bam!  20K/200 transactions and it's 1099 time!

I am most definitely NOT the expert here...perhaps @mam98031 would clarify this if they are in the mood.

🏆😁

[incrediblefinds199]

i looked i am well over that a while ago i hit 75k today but i just noticed a few posts coming in and after that it said welcome to the new ebay. 

[hurryagain]

@incrediblefinds199 

How long have you been in MP?

From what I have read in other posts, PayPal was doing the same thing...needing your full SSN for a 1099 if you reached the 20K/200 sales limit as well.

[mam98031]

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@hurryagain wrote:

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@Anonymous wrote:

From IRS site. Ebay is trying to fleece it's customers again.

Enough "

• Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

The gross amount of a reportable payment does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.

NOTE: The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network;"

---

...Um...

MP is processed by Ayden - I would think that Ayden would be considered a third party processor.  I believe that the reportable amount is based on the gross sale which would include those shipping fees.

And I was wrong about the amt of transactions...only 200 instead of 2K.  So bam!  20K/200 transactions and it's 1099 time!

I am most definitely NOT the expert here...perhaps @mam98031 would clarify this if they are in the mood.

🏆😁

---

@hurryagain  and @Anonymous 

The current threshold on 1099Ks is $20,000 and/ OR 200 transactions for 2021.  

In 2022 the threshold will drop down to $600 with no regard to how many transactions.

When a seller moves into MP [Managed Payments] Ebay now becomes your money processor replacing what Paypal use to do in regards to money processing.  So any money moved through MP MUST be reported on the 1099K if the seller has met  the threshold requirements for the form in 2021.

1099Ks report your GROSS RECEIPTS, not gross sales or income as some call it.  And there is a big difference.  They report the total money you have coming through MP BEFORE any deductions for refunds, fees, shipping charges, etc.  The deductions will be for the seller to report on their Schedule C on their Federal Tax report to arrive at their adjusted gross income.

Ebay is reporting this on the forms correctly with a couple of exceptions IMHO.

1.  Ebay does NOT use the transaction date when reporting on the 1099K.  They use the Payout/Settlement date.  They are the only site that I'm aware of that does this.  All others use the transaction date.

2.  Ebay does NO include the taxes collected from buyers on their payments to sellers that Ebay takes and remits to the appropriate state.  This too is different from other sites to include how Paypal did it.  

But even though I take issue with these two points, for everyone else you just need to make note of it so when you go to balance your 1099K you know this is happening.  Otherwise it will be harder for you to reconcile.

[hurryagain]

 Thank you again @mam98031 for clarifying this for everyone.  I thought it was or 200 but was not sure so I went with what I saw here.

The info that you give us is what all sellers need to know in regards to reporting their income.

I knew I called the right person for this thread.

🏆

Thanks again!

[incrediblefinds199]

over year on MP, i switched a while ago, i had two accounts at one time and did that with paypal. ive been selling a lot, fulltime ebayer now. they just sent me that last night but i have over 1200 sales and over 75k in transactions this year would have been nice if they have asked like months ago. they sent me a message stating you are over the 20k/200 mark and need to add SSN for them to issue a 1099k. no big deal i guess. i see how everyone is against it. dont bother me, i do stuff by the books anyway.  i remember back in like 2003 ish you had to use your SSN to verify your paypal. i noticed today that i have no scheduled payouts and i get them once a week normally tomorrow thursday. i called up ebay and they told me that's normal takes 1-3 days for the SSN to clear or whatever they said, pain in the behind.