1099-K changes question

[ruazn2]

It says on https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html that the changes only affect the tax you file in 2023, but not 2022.  I did get a 1099-K this year as I sold more than $600 in 2021, so am I supposed to just ignore that?  Not sure as this is the first time dealing with this.  Thanks

[monica-sells]

Do Not Ignore it!

If you did get one for 2021, you may live in a state with a previous threshold that applies to you

Whenever you earn money, whether it's through a freelance job or interest on a savings account, you're required to report that income to the IRS and pay taxes on it as well. That's why you should be on the lookout for 1099 forms in the months leading up to the tax filing deadline.

What you read is only pertinent to sellers for 2022 tax year (next years filing)...Sellers who have not previously received 1099-K forms (it explains new thresholds).

[nobody*s_perfect]

Your listings show that you are based in California.  eBay admits that they made a mistake when they issued 1099-Ks to sellers in California who didn't hit the $20K threshold, even claiming that they had NOT sent the information to the IRS. There's an announcement about it somewhere.

[pburn]

@ruazn2 

Here's the announcement referred to in Message #3 above.

California 1099-K for 2021 : to be fixed 

@nobody*s_perfect  - tagging in case you want to bookmark the announcement.

[gatefold]

There was an error regarding CA with 1099-K

oops...I see it has already been pointed out

[buyologist-3]

The Solution!  Bravo!