1099-K form sent in error by ebay

[lindaevelyn]

Ebay sent me a 1099-K form for 2021 tax year.  However, my sales were below $6000.00 and my number of transactions below 127!  So in no way would I qualify under the limits set for the year 2021 which was $20,000 and 200 transactions!  Looks like someone at Ebay made a big mistake and applied the new limit of $600 to 2021 sales and didn't bother to wait until this year, 2022 when they take effect!  This would mean I would have to report this to IRS on my tax return this year and pay a combined tax on it of 30% that I shouldn't have to, but under the law, I am duty bound to report any income that a filer reports to the IRS under form 1099K!  I wonder how many other people this has happened to?  How will ebay correct this?  Will they pay the tax I owed since it is their mistake?  I have contacted them and all they say is yes, this happened, especially in California, and they would fix it.  But when??? I need to file my taxes and still have hear nothing from ebay.  Everyone - if you got a 1099-K make sure you really were supposed to!!

[dbfolks166mt]

     Can you provide a link to the IRS and CA state guidelines? 

[srvosh]

The same thing happened to me and my sales were half your amount and exactly 127 transactions. Not happy with Ebay at all!

[slippinjimmy]

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@srvosh wrote:

The same thing happened to me and my sales were half your amount and exactly 127 transactions. Not happy with Ebay at all!

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What State are you in? Different States have different thresholds.

[fxpel]

You ask why are there so many tax policeman? Maybe because most of us have been reporting our income for years without the 1099 and paying whatever taxes are due. Like dozens of others said, just because you didn't receive a 1099 didn't mean you didn't have to report it. It meant Ebay was not going to report to the IRS. I'm loving it. I can't wait for next year when everybody who sold over $600 gets a 1099.

[nmidair]

I got this mistake form a few days ago, and since I already filed my taxes its too late...My tax person said Ebay cost me $700 which is almost what I paid to have my taxes done.....they owe me $700, and I'm not letting this go.  Do I hear class action lawsuit?

[arashiemily]

Because of their mistake it cost me $346 to fix the error on tax forms. I am in so much stress. 

[mandisattictoyz]

I am absolutely loving this post.  I hope all you tax evaders get stung.  This is what’s wrong with our country.  No wonder everything is taxed to death because of all the tax evaders

[fab_finds4u]

1099 Guidance for recipients-Franchise tax board  CA.gov

"As of January 1, 2021, you may receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment transactions and are an app- based driver, regardless of the number of transactions. Dec 6, 2021.  http://www.fta.ca.gov

[kiwiyankeetom]

As a 25 year seller on eBay, this is 1099 thing is really messed up.  I am a peanut seller in California and understand the rule is above $600 per year.

Here is how screwed up eBay is:

I sold 1 item in 2023 - some Comic Books for $390+$103=$403.  It was returned and I got nothing but was out of pocket for shipping costs. 

I resisted it and sold the SAME Comic Books for $200.

This triggered the $600 and they want my social security number.  But DOUBLE counting the same item.

[lawnmowerpartsstore2]

Hmmm, who would have thought ? Welcome to the new world order

[valueaddedresource]

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@kiwiyankeetom wrote:

As a 25 year seller on eBay, this is 1099 thing is really messed up.  I am a peanut seller in California and understand the rule is above $600 per year.

Here is how screwed up eBay is:

I sold 1 item in 2023 - some Comic Books for $390+$103=$403.  It was returned and I got nothing but was out of pocket for shipping costs. 

I resisted it and sold the SAME Comic Books for $200.

This triggered the $600 and they want my social security number.  But DOUBLE counting the same item.

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@kiwiyankeetom I understand the lower threshold is a burden for small casual sellers but in this case, eBay did exactly what they are supposed to do per IRS requirements.

Legally, the 1099-K has to include every sale you are paid for on this platform, regardless of whether it is eventually returned, refunded, and resold.

You would need to deduct refunds, shipping costs etc. if applicable when you file your taxes. 

[kh-belma]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.