1099-K Delayed? Oh, I sure hope so! :-)

[berengariusfl]

Well, I hope this gives us the time needed to fight this onerous reporting law.  Thoughts?

Apparently, we now have a DELAY in the 1099-K reporting until 2024 (for the 2023 tax year). Does anyone have some insights on this? I'm fairly new on eBay, and not sure about the specifics here. Many thanks! 😁

[714ricki]

Regardless, just file the paperwork. Don't give those friendly 87,000 new tax agents reason to send you a love note. 

Your call!!!

[yuzuha]

I hope you don't think this means you don't have to report the income you made here. You need to be reporting ALL income-- all this means is that eBay won't send you a 1099K form. You're still responsible for doing the paperwork yourself and filing it.

[chapeau-noir]

Gosh - another thread on the 1099K. 

[dnasilver]

There are not 87K new tax agents. Over a ten year period the IRS will be hiring approx. 85K new employees. This encompasses all areas within the IRS. Like the folks who keep the bathrooms and floors clean. Building maintenance, HR, IT, and so on. There are approx. 55K employees who will be retiring in the next ten years. In 2012 There were approx. 90K and even though there has been population and business growth since then. The IRS still will have less folks than in 2012.  

A large portion of folks selling on here do not pay any Federal income tax anyways. So, the 1099K will not change a thing for them. Let's face it a bunch of fear of the IRS has been spouted off by some, when in reality the odds of being audited for many sellers is less than them even making enough to pay income taxes.

[tdrake]

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@chapeau-noir wrote:

Gosh - another thread on the 1099K. 

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Should start a pool on how many threads will be started today with this news. Doesn't anybody read the thread list before posting?

[nobody*s_perfect]

Yes, you should.

No, they don't. 

[monroe67]

"Apparently, we now have a DELAY in the 1099-K reporting until 2024 (for the 2023 tax year). Does anyone have some insights on this? I'm fairly new on eBay, and not sure about the specifics here."

Not sure exactly what you want to know when you ask for insights.  

The delay in the 1099-K reporting applies to eBay. 
eBay is the entity that reports to the IRS. 
Because of the decision on December 23, 2022, eBay does not have to send out Forms 1099-K to sellers who have sold between $600.00 and $20,000.00 during 2022. 

Read that again.  eBay will not be sending me (to my selling ID) a 1099-K form for my sales which, by my rough calculations, are around $650-$700.  

The 1099-K form is used by "third party settlement organizations" (such as eBay) to report to the IRS the amounts of payments they made to recipients, such as individual eBay sellers.  THAT is what "reporting" means when it comes to the 1099-K:  eBay is required to report to the IRS.  

You and I, as eBay sellers, still have to include our eBay income of ANY AMOUNT, on our 1040 tax return forms, whether we get a piece of paper from eBay or not.  

I will not receive a 1099-K from eBay for 2022.  Does that mean I did not earn roughly $675 from eBay sales during 2022?  No, of course not.  I earned income from selling stuff on eBay.  My income from selling stuff on eBay during 2022 was roughly $675.

Does this announcement on December 23, 2022, mean you or I, as eBay sellers, can "DELAY" paying income taxes on our eBay earnings during 2022?  No.  

Indeed -- imagine you have been an eBay employee working on the programming for the 1099-K reporting requirements for months and months and months.  And all of a sudden, on December 23, 2022, the IRS says, "Oh, we don't really need info on people who earned under $20,000 from eBay sales after all.  Never mind!"  Would you feel like your efforts have been wasted?  

What a can of worms has been opened.   

[maxine*j]

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@berengariusfl wrote:

Well, I hope this gives us the time needed to fight this onerous reporting law.  Thoughts?

Apparently, we now have a DELAY in the 1099-K reporting until 2024 (for the 2023 tax year). Does anyone have some insights on this? I'm fairly new on eBay, and not sure about the specifics here. Many thanks! 😁

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What is "onerous" about it?  It's just a piece of paperwork.  It changes nothing to do with your income tax obligations, federal and state (if your state has an income tax).  Whether or not you must file a tax return, what income you must report on that return, how much tax, if any, is due on that income, all remain exactly the same. 

The only people for whom the lower reporting threshold was onerous were eBay, which had the expense of issuing millions of 1099Ks and faced substantial penalties for errors in doing so, and tax dodgers.  For everyone else, it's not onerous and nothing has changed because of one small bit of paperwork.

Uber and Lyft drivers, et al in the "gig" economy, will still get their 1099s.  All the pensioners will still get 1099s to report any interest they may have earned on their savings, no matter how small.  All those who work for others, including the working poor at the minimum wage, will still get their W-2s.   But so many eBay sellers think they're positively entitled to tax-free income.

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[dbfolks166mt]

     Really makes no difference for me for a couple of reasons. First I have always reported my income and secondly I live in Virginia which has a state law already in place that requires 1099 issuance at a $600 threshold. If this is accurate it will cause a headache for all the third party financial processors that are already setup to distribute the 1099's.

     With the delay it will be interesting to see how many states pass their own reporting laws. 

[chapeau-noir]

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@tdrake wrote:

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@chapeau-noir wrote:

Gosh - another thread on the 1099K. 

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Should start a pool on how many threads will be started today with this news. Doesn't anybody read the thread list before posting?

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Running neck and neck with "Why are my views gray?".

[pburn · Accepted solution]

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@berengariusfl wrote:

Does anyone have some insights on this? I'm fairly new on eBay, and not sure about the specifics here. Many thanks! 😁

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Yes . . . the people participating in the previous six threads on this topic have shared their insights:

eBay needs to assure sellers NOW and make an announcement! No 1099-K forms will be issued for 2022! 

New 1099-K threshold postponed a year by IRS 

AMAZING NEWS!!!!! 1099 

IRS delays new tax-reporting rule on Venmo, PayPal payments over $600 

NO 10-99 this year. 

IRS Delays $600 Gig-Tax Rule 

[audiokingman]

How do you know if the $600 rule is starting on eBay January 1st 2023 or January 1st 2024? Seems like the announcement is vague so far.

[monroe67]

"How do you know if the $600 rule is starting on eBay January 1st 2023 or January 1st 2024? Seems like the announcement is vague so far."

To answer the question as written, it would be reasonable to assume that "the $600 rule" will start again on January 1st, 2023.  

To Reiterate Previous Posts:
eBay is required to report to the IRS, by means of Form 1099-K, the amounts of income each seller earned from his/her eBay sales, simply put.  
Up until December 23, 2022, eBay was required to report to the IRS, to send that 1099-K info to the IRS for sellers whose minimum sales were $600.00 during 2022.  

Then an announcement was made, on December 23, 2022, that the $600.00 "floor" for the 1099-K reports -- FROM eBay TO the IRS -- was delayed for tax year 2022.  

There Is No Change whatsoever for taxpayers like me and my selling ID, and, I assume, many of the regular posters here in this community, we who (try to) sell on eBay to supplement our income from jobs and/or Social Security.  
This change means only that eBay sellers who sold less than $20,000 on eBay during 2022 will not receive a 1099-K from eBay.  

We are always supposed to list all our income, from all sources, on the front page of our 1040 tax return forms. 

We are, therefore, still required to list all our income on our 1040 tax returns for 2022, due mid-April of 2023, like always.

Whether we get a 1099-K form from eBay or not.  

[perfumenmore]

This is still too vague. Does that mean it's for the rest of 2022 and reporting won't be necessary if filing under regular tax law when filing your taxes in April 2023? Or is even 2023 exempt from this new law? I wish someone from eBay would clarify this.