eBay

greendanne27 · ‎11-30-2023

I just listened to a finance person on youtube state that the IRS is again postponing sending out 1095-K forms for $600 and up "income" and the $20,000 amount still holds. Is this correct?

1786davycrockett · ‎11-30-2023

Don't know anything about the "1095-K" form.

However, the 1099-K form for the minimum threshold of $600.00 has again been delayed for the 2023 taxable year.

Which still means that you have to declare ALL income on your Federal taxes for 2023.

lukdudle · ‎11-30-2023

yes but now you are going to be bombarded with all the holier than thou tax police saying you should be paying anyway.

annadryl · ‎11-30-2023

Are there as many videos about this on Youtube as there are threads about this here?

css2001 · ‎11-30-2023

Yes, it has been postponed again for tax year 2023. But you need to check with your state threshold requirements. Irregardless, as others keep saying, ALL income needs to be reported.

https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-part...

chapeau-noir · ‎11-30-2023

@lukdudle wrote:
yes but now you are going to be bombarded with all the holier than thou tax police saying you should be paying anyway.

Some of us dislike freeloaders. Sorry.

“The illegal we do immediately, the unconstitutional takes a little longer.” - Henry Kissinger

"Do not obey in advance." Timothy Snyder "On Tyranny"

mam98031 · ‎12-01-2023

@greendanne27

The 1099K does NOT report income, it reports your Gross Receipts, which is different. The amount that will appear on your 1099K is the total amount of money that came into your MP account BEFORE deducting for any refunds, fees, shipping etc. You will have the ability to deduct your costs to arrive at your adjust taxable income.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

mam98031 · ‎12-01-2023

@lukdudle wrote:
yes but now you are going to be bombarded with all the holier than thou tax police saying you should be paying anyway.

@lukdudle

I don' think that really is the point of what some try to explain. Many misunderstand what a 1099K does and doesn't do. It is merely a form and nothing more than a form. It does not change the IRS rules on reporting income.

With or without a 1099K we are required by IRS laws to report our income. So lowering the threshold on a FORM doesn't change that, the threshold only applies to the FORM.

It is also a misunderstanding to think that many people that would get a 1099K at the low end of $600 would even have to pay any additional income taxes after they subtract their costs for those sales. It is highly unlikely that it will have any impact to how much you have to pay in taxes.

Tax brackets 2023

Tax Rate

Single

Married filing jointly

Married filing separately

Head of household

10%	$0 to $11,000.	$0 to $22,000.	$0 to $11,000.	$0 to $15,700.
12%	$11,001 to $44,725.	$22,001 to $89,450.	$11,001 to $44,725.	$15,701 to $59,850.
22%	$44,726 to $95,375.	$89,451 to $190,750.	$44,726 to $95,375.	$59,851 to $95,350.
24%	$95,376 to $182,100.	$190,751 to $364,200.	$95,376 to $182,100.	$95,351 to $182,100.
32%	$182,101 to $231,250.	$364,201 to $462,500.	$182,101 to $231,250.	$182,101 to $231,250.
35%	$231,251 to $578,125.	$462,501 to $693,750.	$231,251 to $346,875.	$231,251 to $578,100.
37%	$578,126 or more.	$693,751 or more.	$346,876 or more.	$578,101 or more.

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

greendanne27 · ‎12-04-2023

Sorry - my bad in posting 1095 instead of 1099K. So thank you for the confirmation. Again, this is still an issue for those of us who only sell our own personal used goods. Not intending to be a business, just selling previously paid for items which almost always do not generate a profit. Apparently for years, we were considered "hobby sellers" or something and no one reported their income. That likely has changed?? And again, for those who say well just report your income and calculate your taxes, have your accountant do it, etc etc. there seems to be a lack of understanding and many in this niche are selling their own stuff to pay for their medications, for food etc and do not have funds for accountants. I prepared my own little tax sheets for each listing that showed my expenses, fees etc and there was a handful of items that showed any profit. We are not businesses, we don't make enough to itemize, we are not in competition with business sellers. It is still confusing for most in this situation. thanks for all responses!

doc-holmes · ‎12-04-2023

@lukdudle wrote:
yes but now you are going to be bombarded with all the holier than thou tax police saying you should be paying anyway.

No, the law says you must pay it. But you decide what you want to do.

gosimus · ‎12-04-2023

@greendanne27

< postponing sending out 1095-K forms for $600 >

You mean 1099. The 1095 forms deal with insurance. https://www.irs.gov/forms-pubs-search?search=1095

Sorry, davy, meant to reply to the OP. BTW, I was born on Davy Crockett's birthday, August 17.

nobody*s_perfect · ‎12-04-2023

@greendanne27 wrote: ... this is still an issue for those of us who only sell our own personal used goods. Not intending to be a business, just selling previously paid for items which almost always do not generate a profit. .... We are not businesses, we don't make enough to itemize, we are not in competition with business sellers. It is still confusing for most in this situation. thanks for all responses!

The IRS has lots of useful publications, like these:

https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

Which explains that in the situation you describe (selling personal items at a loss), you only need to add two entries on your tax return:

"For calendar year 2022 tax returns, if you receive a Form 1099- K, for the sale of a personal item that resulted in a loss, you should make offsetting entries on Form 1040, U.S. Individual Income Tax Return, Schedule 1, Additional Income and Adjustments to Income, as follows:

Report your proceeds (the Form 1099-K amount) on Part I – Line 8z – Other Income, using the description "Form 1099-K Personal Item Sold at a Loss."

Report your costs, up to but not more than the proceeds amount (the Form 1099-K amount), on Part II – Line 24z – Other Adjustments, using the description "Form 1099-K Personal Item Sold at a Loss."

mam98031 · ‎12-04-2023

@greendanne27 wrote:
Sorry - my bad in posting 1095 instead of 1099K. So thank you for the confirmation. Again, this is still an issue for those of us who only sell our own personal used goods. Not intending to be a business, just selling previously paid for items which almost always do not generate a profit. Apparently for years, we were considered "hobby sellers" or something and no one reported their income. That likely has changed?? And again, for those who say well just report your income and calculate your taxes, have your accountant do it, etc etc. there seems to be a lack of understanding and many in this niche are selling their own stuff to pay for their medications, for food etc and do not have funds for accountants. I prepared my own little tax sheets for each listing that showed my expenses, fees etc and there was a handful of items that showed any profit. We are not businesses, we don't make enough to itemize, we are not in competition with business sellers. It is still confusing for most in this situation. thanks for all responses!

Yes, those that sell their personal items have to go the extra step to try and value the items being sold. The links I provided in my earlier post will help.

People get confused thinking they must be an established "business" to have to pay taxes on proceeds, yet that is not the case nor has it ever been the case for IRS rules. It is just an easy go to statement for people in similar positions as you.

It is important to know, the rules for claiming Income with the IRS has NOT changed. The 1099k has nothing to do with that as it is only a form. We have always been responsible for reporting ALL our income per the rules of IRS. With or without a 1099K.

I believe the definition of Hobby Sellers changed in the Trump administration and the sweeping tax changes they made. Still had NOTHING to do with the 1099K. Under the current rules for IRS I do not think you want to be defined as a Hobby Seller as it is quite different now and likely wouldn't serve you well.

"...for those who say well just report your income and calculate your taxes,..." There may be some significant editing going on here that completely changes the meaning as I don't think anyone would really advise you to do this. Sounds like you are saying that some have told you to just claim all your income you earned and calculate your taxes from there. That would be utter nonsense. You can deduct your costs, Ebay FVFs, shipping cost, shipping supplies, refunds to buyers, cost of product, etc. To arrive at your NET Income. Then you calculate your taxes from there.

Many people on these threads are scared of exactly what you are scared of, but for the most part there really isn't any reason to be scared. Most sellers that are like you, depending on the income earned here to make ends meet likely will not even qualify to pay any additional income taxes on there income here.

Again, you do not have to be, however you are defining it, a business to report your income properly and be able to take deductions. The Schedule C is actually very user friendly and has a booklet to support each line item on the form. All of which is accessible online.

All sellers on sites such as this are in competition with every other seller of similar times. It does not matter how often you sell or from what walk of life you come from.

This info is only for those 65 or older, if you are younger than this, the info for your situation is out there on the internet too and you can look for it.

IRS 2023 Income 1.jpg IRS income 2.jpg