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?

[singular-source]

Virginia if that's a correct list...

[nocoolnamejane]

Has she ever lived in a state with a lower threshold and may have an old address somewhere in her account?

Or as @dbfolks166mt mentioned, maybe they just decided to send one to everyone. The law says eBay is -required- to send a 1099-K after a certain amount, it doesn’t say it prohibits them for sending one for a lower amount.

I’m in Canada, but most of our tax forms are automated, I just send one to everyone, even though I’m only required to do so if someone received $500 or above.

[techanalyst1]

Only California.

[techanalyst1]

She hasn't sold anything before last year. She sold stuff she cleaned out of her house that she was going to toss before she moved to a smaller place.

[mam98031]

[yuzuha]

Okay, yeah, that looks right! I knew a few more states had lowered the threshold as well, I just couldn't remember which ones.

[theteamsetguy]

That is the requirement for the IRS. There are about 10 states that require payment processors issue 1099’s as little as $600.00 per year without transaction minimums. The state laws in these cases supersede the IRS rules. Some of the states have had the lower requirement for years. 

[nobody*s_perfect]

Yes, Vermont and Massachusetts have had a $600 threshold since 2018.  

But the OP's sister is in California, which isn't on the list.  I'm pretty sure I saw another thread yesterday from a poster in California who had gotten a 1099-K despite a low total for the year.  Maybe it's a special eBay glitch related to them being based on California.

[nobody*s_perfect]

---

@nocoolnamejane wrote:

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

 

---

Thank you for providing that list. Could you please provide the link to yoru source? Thanks again.

[ustabee1]

I'm confused. 

1099 or not, she was going to report the income when filing taxes, right?

So why is this a 'problem'

[fern*wood]

So what...

I'm really starting to be annoyed at all the posts by folks upset about getting a 1099k.   As far as reporting income on taxes, it doesn't matter.  The only way to read these posts is they are upset to have a record of their sales being noted, since they had no intention of reporting otherwise.

Funny how some post their anguish of needing to stop selling now due to getting a 1099k.  Why?  Of course, they just don't want to report, but when we call them on this, they come back to claim oh no I've always paid.  Well, then explain the anguish over a 1099k.  enough already

Fellow sellers---they never used to send any 1099ks regardless of total sales, but that didn't stop the requirement of reporting your income and it didn't stop audits.

[fab_finds4u]

Add Missouri  w/ $1200 reporting threshold 

[chris90242]

I'm in California, sold my part of  my music collection, $647 gross sales in 2021, and I just got a 1099-k. Is this a glitch or what?

[jda03121]

Unless she has been dodging taxes, what difference does it really make?

[b86fiero]

She might not need the 1099 for federal tax return but does she need it for filing a State Income Tax return?