1099-k from both Paypal and eBay (duplicate records)

[lovebugdesign]

Curious how other sellers are handling the duplicate 1099s that eBay and Paypal sent out?  I have two separate 1099s (one from eBay and one from Paypal) for the same transactions for 2022....seems like one or the other should have distributed these so as to confuse the IRS or sellers.  Any tax pros here? #1099 #sales #ebay #2022 #paypal

[ebooksdiva]

If you sell on other platforms that use PayPal as their payment processor and you also sell on eBay then it would make sense that you would receive two 1099s. 

[mtgraves7984]

I agree. Are you certain that they're duplicates, @lovebugdesign?? I'd think not, but that's just me...

[wastingtime101]

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@lovebugdesign wrote:

Curious how other sellers are handling the duplicate 1099s that eBay and Paypal sent out?  I have two separate 1099s (one from eBay and one from Paypal) for the same transactions for 2022....seems like one or the other should have distributed these so as to confuse the IRS or sellers.

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That doesn't make any sense @lovebugdesign. You get one 1099 from each payment processor you're dealing with. PayPal is not a payment processor for eBay transactions. Whatever you received from PayPal is not for the same transactions.

When did you complete the transition to managed payments? If it was mid year 2022 then you may have received a 1099 from PayPal for the first half of the year when PayPal processed your payments and a 1099 from eBay for the second half of the year when eBay processed your payments. None of the transactions would overlap on the separate 1099s.

If you transitioned to managed payments before 2022 then the PayPal 1099 is not for eBay transactions.

[12345jamesstamps]

Any money you receive from Pay Pal, Etsy, ebay, Venmo, CashApp, Airbnb, etc. will get you a 1099. Someone just sending you money through Pay Pal like friends or family will get you a 1099.

[wastingtime101]

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@12345jamesstamps wrote:

Someone just sending you money through Pay Pal like friends or family will get you a 1099.

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PayPal traditionally never included any "Friends and Family" transactions on a 1099. But they did make changes last year and said business accounts could not receive F&F payments without incurring fees. Whether or not they're going to include F&F transactions on 1099s for business accounts dated after this fee change I don't know.

For a personal PayPal account F&F transactions are still without fees. Someone can have 2 PayPal accounts if needed - one business, one personal.

[monica-sells]

lots of guidance and possible scenarios here......

it is not impossible, but HIGHLY unlikely they are "duplicate" transactions.......

mostly since the top-line numbers are drawn from a database from 2 separate entities.....

Today's Scorecard

user error - 5    ebay error - 1

that is why we try to help each other

[lovebugdesign]

Thank you @wastingtime101 I spoke w my accountant who repeated what you said.  It just so happened the amount was the same for both 1099s.  Strange occurance.