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]

Because red states don’t have public services, it’s a well known fact *nods*

[onefootflipper2]

My wife's account got one, we are in Missouri and it was under the Missouri threshold. I think they just generated them for everyone.

[wrong66]

Although I understand and agree with what you mean, this isn't part of the conversation.

[wrong66]

This is the first direct answer to the OP's question.

[wrong66]

More nonsense.

[stainlessenginecovers]

Sounds to me like this:

Adyen is a Swedish Company. They don't want to 'look' to see what state a person is from; so they are just going to issue to anyone in the US a $600 1099. 

The issue will be; everyone getting one, that copy will go to the IRS so all need to be sure to include amounts on their taxes. 

[tealt]

---

@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?

---

Your sister is not alone.

I got one too--for a lot less than $20,000 in 2021 eBay sales, and I am also in California

For reasons known only to itself, eBay seems to be practicing sending 1099K's to CA sellers that won't  qualify for 1099-K's until January 2023.  I wonder if it is only CA sellers who are getting these.

Knowing eBay as well as I do, I suspect that this one of their more creative and drama-fraught glitches.

The most interesting question is whether these 1099Ks have already been sent to the IRS and CA Franchise Tax Board.

[richard454]

Exactly---

"In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable," the IRS says. ... These transactions are considered "casual sales" by the state. They aren't subject to state sales tax

[tsme35]

Not sure where that list came from, I call my accountant, in Missouri, the $1200 threshold applies to employers issue's the 1099k to someone who works for them, not a IRS 1099 requirement.  MO is so far behind everyone, they didn't even pass the tax law until July 2021 and won't be collecting sales online taxes until Jan. 2023. MO doesn't have the computers or programs to apply it lol

[shipscript]

@techanalyst1 

Since your sister (the topic of this thread) is in California and received a 1099-K, and based on the other Californians who posted that they received the same for sales over $600, but not under $600, it would appear that, since California does have a $600 threshold for 2021 related to "third-party payment network transactions" (albeit Uber drivers) , that eBay has simply decided to issue 1099Ks to anyone in a state that has a 1099-K threshold of any kind for 2021.

As others may have stated, the 1099-K is only imposed on the payer (the "third-party payment network" of eBay/Adyen) when payments exceed some minimum ($600 in the case of California, for Uber drivers), but that does not prevent the third-party network (eBay/Adyen) from voluntarily supplying a 1099-K for transactions that are not yet mandated, if that simplifies the way the 1099s are issued.

I am only assuming California's 1099-K threshold is for only Ubers in 2021 because of the State's information page.

https://www.ftb.ca.gov/file/personal/income-types/information-returns-1099.html

It may have incorrectly used AND instead of OR, and this may actually affect more than just Ubers, but I have not read the actual California Law.

[mam98031]

---

@richard454 wrote:

Exactly---

"In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable," the IRS says. ... These transactions are considered "casual sales" by the state. They aren't subject to state sales tax

---

Yes.  Under Captial Gains.  Similar to when people start selling things like their collectibles and they are worth more now than when they bought them.

[mam98031]

---

@tsme35 wrote:

Not sure where that list came from, I call my accountant, in Missouri, the $1200 threshold applies to employers issue's the 1099k to someone who works for them, not a IRS 1099 requirement.  MO is so far behind everyone, they didn't even pass the tax law until July 2021 and won't be collecting sales online taxes until Jan. 2023. MO doesn't have the computers or programs to apply it lol

---

From Ebay.

[mam98031]

For those interested there was an Ebay Podcast on this subject this morning.  Here is more information if you are interested.

https://community.ebay.com/t5/Selling/1099K-Information-for-2021-amp-2022-via-Ebay-PODCAST-2-1-22/m-...

[buyologist-3]

Me, too!  Some not only complain but SHOUT!  For some of us this is like watching a Soap. It's mostly a point of view thing.

[jo_lomba]

YES! I only sold $850 for the 2021 year. I received my 1099k today. I'm not sure why I received it, or if I need to file it. It sure would suck if I have to pay high taxes on selling my own used junk, on top of ebay's expensive fees and shipping costs.