1099

[keziak]

I just got my PayPal 1099 but when I check on ebay I get this message. Same as you? 

No tax forms available

You haven't sold enough on eBay requiring you to submit tax documentation

[ronsam-197]

Just out of curiosity, is there anyone who has more than one selling ID but using the same EIN/SSN and is under MP and has received a 1099?

Just wondering how this works under MP as presumably the 1099 is generated by the total of all sales/transactions of all the selling IDs. Does the 1099 show up on each ID but with the same total figures?

[slippinjimmy]

I don't know the answer.....probably only three ways to do it.

Issue multiple 1099's one to each selling account but factoring in the reporting requirement for all accounts combined.

Issue a single 1099 and post it on only one account, maybe choosing the oldest id or the one with the most sales

Issue a single 199 but place a link in every active account that all go to the same 1099.

I'm sure someone will know once it happens. Won't happen for me in 2020 because only one of my selling accounts is in MP. I don't care which way they do it, the numbers will be the same either way.

[lacemaker3]

@ronsam-197, here's what eBay says about this:

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794#section1

...

Form 1099-K and multiple eBay accounts
If you have multiple eBay accounts associated with the same Tax ID, your thresholds are calculated by combining all payment transactions. If your combined sales exceed the above thresholds, you’ll receive a Form 1099-K for each account, even if one or more of the individual accounts do not exceed the IRS reporting thresholds.

For example, you may be a managed payments seller with two accounts associated with the same Tax ID. If you have over 200 sales transactions combined between the two accounts, and received $19,999 in payments on one account and $5 on the other, you’ll receive a separate Form 1099-K for each account.

...

[ronsam-197]

So, if for instance you have 6 Ids you'll get 6 separate 1099 forms?

Why am I not surprised?

Why on earth can they not combine them into ONE 1099 form?

Life was so much simpler under PayPal.

[slippinjimmy]

Same reason your bank may issue multiple tax slips, one for your savings account, one for CD's or other similar products.

Is it really that onerous to add a few numbers together?

[ronsam-197]

No, but I think your 2nd or 3rd option would have been better.

[grammadebby0]

I got the same message. Since I changed over to managed payments in August I did not get a 1099 from PayPal either. Now I don't know what to do

[slippinjimmy]

---

@grammadebby0 wrote:

I got the same message. Since I changed over to managed payments in August I did not get a 1099 from PayPal either. Now I don't know what to do

---

Same thing anybody does when they have self-employment income.......

Declare the income on Schedule C, itemize your expenses and transfer the net amount to your 1040.

The only real purpose of a 1099-K is to catch tax evaders, other than that it's a pretty useless document.

[56vegas1949]

I am 71 years old, live in Illinois, and my husband and I visit estate sales every weekend for the past 3 years. Selling on eBay has been my hobby and 'mental stimulation' and a means to make a few extra dollars.  

This is the first year I received a 1099 K from PayPal, as I received $4100 in gross payments from 135 buyers.  I was confused on the selling & transaction threshold until I read the fine print that in Illinois  the limit is $1000 & at least 6 transactions.  I called the IRS directly, an they provided me with phone #'s for State of Illinois tax department to determine if I really need to provide document of expenses to offset  the whopping income of $4100!.  I am calling the Illinois Revenue department tomorrow.

As far as the state sales tax that Ebay charged, collected  and submitted on my behalf from my buyers, do I need to advise my tax preparer of this figure also?

Quite frankly, what used to be a "fun" endeavor, has now become a pain.  Seriously thinking of finding something else to do to keep my mind stimulated!

[nobody*s_perfect]

" I visit estate sales every weekend for the past 3 years. Selling on eBay has been my hobby and 'mental stimulation' and a means to make a few extra dollars.... I called the IRS directly, an they provided me with phone #'s for State of Illinois tax department to determine if I really need to provide document of expenses to offset  the whopping income of $4100!"

Yes, you do, and you should have reported past years. There's no need to call the state. They are the ones who set a lower threshold, apparently they are willing to go after lower-level tax evaders than the feds. You are buying and re-selling for a profit. That is reportable income whether you get a 1099-K or not.

If your state is like mine, they have you submit the regular IRS Schedule C to document your eBay income and expenses.  Take a look at the form and its instructions. You don't submit proof of your expenses, but you might be asked for it if you are audited.  Start saving receipts when you go to estate sales.

[56vegas1949]

Thanks for your info!  

Not bothering to call State of Illinois Revenue department tomorrow, as I researched and found that tax year  2020 was the first year that they instituted a $1000 + 6 transaction threshold.

Guess I'll start reviewing my spreadsheets and PayPal's reports for reconciliation!

[abigailsowner]

Since Managed Payments deposits money into your checking AFTER deductions for fees, will your 1099 amount reflect this, and therefore be a lower amount than it would have been on Paypal?

[findbeautyinside]

Yes, this is bull **bleep**.  Ebay should have sent me one too but did not.  No way to retrieve it from the cite either.  And I am 100% certain I had more than the 20K in gross sales requiring them to do it.

[kh-stanley1]

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.