1099

[techanalyst1]

My sister made well under $20000 between two accounts. Ebay sent her 1099's for both. Chat person said it's because she had over $600 in sales. When she said that starts this year, he said since she's been helped he is signing off.

Anyone else have a 1099 for under $20000?

[nocoolnamejane]

Different states have different thresholds well under $20 000.

In what state is she located?

[singular-source]

Makes no sense that $600 in sales for 2021 would enter into any conversation about 2021 1099.  200 transactions and 20k in sales.  Both!  Call eBay.

[yuzuha]

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@singular-source wrote:

Makes no sense that $600 in sales for 2021 would enter into any conversation about 2021 1099.  200 transactions and 20k in sales.  Both!

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Wrong. Many states have already implemented the $600 threshold.

[singular-source]

2 transactions for 100,000 for 2021 means no 1099.

• For returns for calendar years prior to 2022:
  • Gross payments that exceed $20,000, AND
  • More than 200 such transactions

[nocoolnamejane]

In Vermont, Massachusetts, Virginia and Maryland, the reporting threshold is $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions.

[singular-source]

Straight off of IRS Webpage.

[singular-source]

Good point...my bad

[yuzuha]

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@nocoolnamejane wrote:

In Vermont, Massachusetts, Virginia and Maryland, the reporting threshold is $600 USD in gross payment volume from sales of goods or services in a single calendar year, regardless of the number of transactions.

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Isn't it more states than that now? I thought a few more had implemented it as well.

[singular-source]

Its so frustrating to not be a tax professional...and not be able to higher one.  Because it clearly states this on the IRS website.

[techanalyst1]

This is for California. She copied ebay's link that shows it is starting in 2022 but he ended the chat and said she got it because she sold more than $600.

[techanalyst1]

California. It's right on the ebay website that $600 is for next year.

[nocoolnamejane]

You are absolutely right, I believe this is the most up to date list

 

[dbfolks166mt]

     Yes and while I am under the Federal 20K limit I live in Virginia. I got one last year as well along with several from other third party financial processors: PayPal, Venmo, Google Pay, Stripe..... It may be eBay is taking a shotgun approach and issuing the 1099 to everyone rather than try to figure out the individual states. This is a mess no matter how you look at it. 

[albertabrightalberta]

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@techanalyst1 wrote:

My sister made well under $20000 between two accounts. Ebay sent her 1099's for both. Chat person said it's because she had over $600 in sales. When she said that starts this year, he said since she's been helped he is signing off.

Anyone else have a 1099 for under $20000?

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@techanalyst1 

Even though she didn't get 1099s in the past, she was claiming all the income on those accounts from all her  sales, right?