eBay

1chaigirl · ‎02-05-2022

Read posts about CA but am in VA (apparently that went from and I sold items totaling $1k+ but that includes sales tax, shipping, and most of these 10 items were household items that I sold at a loss.

Do I Ignore the form for VA? Since they sent it for 2021? And the amount is supposed to change from $20k I believe to $600 from 2022.

I think I am also going to stop at $500 sales for 2022 and going forward change that number as goalposts change.
But if I do get a form in the future how does one go about factoring in expenses ?
Any articles or insight into this appreciated.

kensgiftshop · ‎02-05-2022

@1chaigirl

You need to check with your state and see what the limit is for reporting your income.

Some states have had a lower limit for awhile.

Have a great day.

1chaigirl · ‎02-05-2022

I did. It’s $600 from 2022. But

1) why did VA people get a form for 2021

2) how does one factor in expenses? I sold at a loss - just household items.

slati_2013 · ‎02-05-2022

Because the Virginia $600 law went in effect for the 2021 year. It is a state law.

wildpitchsports · ‎02-05-2022

@1chaigirl wrote:
Read posts about CA but am in VA (apparently that went from and I sold items totaling $1k+ but that includes sales tax, shipping, and most of these 10 items were household items that I sold at a loss.

Do I Ignore the form for VA? Since they sent it for 2021? And the amount is supposed to change from $20k I believe to $600 from 2022.

I think I am also going to stop at $500 sales for 2022 and going forward change that number as goalposts change.
But if I do get a form in the future how does one go about factoring in expenses ?
Any articles or insight into this appreciated.

DO NOT IGNORE IT. You have to report it on your state income taxes. You can prove P/L on a schedule C that is the most common way.

I think I am also going to stop at $500 sales for 2022 and going forward change that number as goalposts change.

Smart.

kensgiftshop · ‎02-05-2022

@1chaigirl wrote:

2) how does one factor in expenses? I sold at a loss - just household items.

How have you done it before?

Have a great day.

wildpitchsports · ‎02-05-2022

@kensgiftshop wrote:
@1chaigirl wrote:

2) how does one factor in expenses? I sold at a loss - just household items.

How have you done it before?

Oh here comes another trap. If he's asking then clearly he hasn't. Come on with these replies.

nobody*s_perfect · ‎02-05-2022

Virginia is one of several states that have already implemented lower thresholds for 2021 or even earlier. Here's eBay 's memo about it from last February:

https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915

1chaigirl · ‎02-06-2022

This is the first time I sold anywhere close to that amount - casual sellers selling household items at a loss wouldn't know how to handle taxes.

Don't know about those who would like to fudge - my question as a novice was to get advice about absolutely legit expenses - how to factor those, shipping etc. Would appreciate any pointers.