eBay

zeeduke · ‎11-08-2021

Hello , I know this has been asked about a thousand times , but I was under the impression that this year , a person would have to sell more than 20k or 200 transactions to receive a 1099 , but a few days ago I was sent a email by ebay that I need to provide my full social security number because I exceeded 1200 . I knew the thing was changing in 2022 , so I thought I would get rid of my junk before hand. I know I need to pay tax on profit , but my problem is I bought all this junk on ebay years ago and didn't keep track of what it cost in the first place . So without records , I guess I am going to have to declare its all profit . Any suggestions? I know I spent more than I received from the stuff but have no proof . I live in Missouri , and pretty sure it was not a state that changed earlier .

Really not thrilled about giving ebay my social security number either . I am about out of junk anyway, can I just stop selling on ebay and forget about this . Will I still be able to buy stuff . Any help would be appreciated.

postingid7659 · ‎11-08-2021

Might be a scam, does it show on eBay in your My Messages inbox?

If you're in Managed Payments eBay should already have all of that information anyways.

kensgiftshop · ‎11-08-2021

@zeeduke wrote:
but I was under the impression that this year , a person would have to sell more than 20k or 200 transactions to receive a 1099

It depends on your state, some are already lower then that.

You'll have to give them the your full SSN.

Looks like Missouri is $1200.

Have a Safe and Happy New Year.

house*of*paws · ‎11-08-2021

@postingid7659

eBay initially requires only the last 4-digits of the member's SSN to join Managed Payments. The full number is required only after the dollar amount of items sold reaches a given threshold.

eleanor*rigby · ‎11-08-2021

@zeeduke wrote:
Hello , I know this has been asked about a thousand times , but I was under the impression that this year , a person would have to sell more than 20k or 200 transactions to receive a 1099 , but a few days ago I was sent a email by ebay that I need to provide my full social security number because I exceeded 1200 .

I live in Missouri , and pretty sure it was not a state that changed earlier .

It doesn't matter whether you receive a 1099-K or not. It's not like anything income below $1,200 is exempt from being reported just because you didn't receive a 1099-K. $1,200 is the threshold for received a 1099-K, not for whether the income needs to be reported. Just because you have income of $1,199 doesn't mean you don't have to report it. All income must be reported!

Missouri Department of Revenue/Reporting Miscellaneous Income

dbfolks166mt · ‎11-08-2021

You can't simply forget about it and make it go away. In reality you should have always been paying taxes on income from eBay, and other, sales regardless of the reporting thresholds. You can stop selling but eBay, or the IRS, is going to make you follow through on this. As a side note you will also get 1099's from ANY third party financial processor where you exceed the reporting thresholds i.e. PayPal, Venmo, etc.

You do not have to declare it all as profit. While you may not have receipts from the original purchases, i.e. the Cost Of Goods Sold (COGS) there are reports you can pull in eBay that will give you offsets. The 1099 will include ALL funds you received from the seller as a result of the transactions. Easy things that are deductions to that gross amount are the eBay FVF's, shipping cost (if you bought the labels through eBay) and any refunds or return costs. You can also deduct your POV to and from the post office, packing materials, paper, ink for printing, etc. As for the COGS depending on how long ago the purchases were made you may still be able to pull that report from eBay. If not, while risky without receipts, you could make your best estimate on what you paid for the items. If all else fails get a tax accountant to do your taxes or one of the tax services.

caldreamer · ‎11-08-2021

You have to report "gross sales" even if you don't get a 1099. After you take deductions (EBAY fees, shipping supplies, cost of goods, mileage, etc) that is amount that you will be taxed on.

Anonymous · ‎11-22-2021

If you look at the original amount I paid for items I have sold on eBay, I have overall taken a LOSS. Bought cameras and books at new retail, sold them at used price on eBay. Bought silver coins when silver was high, sold when silver was lower. The reason for selling at a loss is because some money is better than none. People who sell at yard sales always lose money on the clothes and housewares they sell. So, can we claim the loss on our taxes? IRS is going to love that, when they find out that people all over the country are LOSING money on things like eBay, Craigslist, yard sales, and flea markets. Professional sellers make money, but guys like me do not, overall. I have books listed right now that I paid $29.95 for at Barnes and Noble, that I am asking $9.95 (and that is the gross amount) for. So I guess where the 1099 is concerned, the thousands of guys like me should just say: "BRING ON THE 1099, we will gladly pay LESS taxes this year!"

nobody*s_perfect · ‎11-22-2021

@Anonymous wrote:
If you look at the original amount I paid for items I have sold on eBay, I have overall taken a LOSS. ... . So I guess where the 1099 is concerned, the thousands of guys like me should just say: "BRING ON THE 1099, we will gladly pay LESS taxes this year!"

Selling items at a loss on eBay is not going to decrease our tax liability. You need expert advice.

christine0186 · ‎02-08-2022

Hi, I live in Missouri. I just received a 1099-K form in yesterday's mail. Um...I don't know why since I only sold $1,658.53 of online "garage sale" items on ebay. I thought the threshold was $20,000? Can anybody clue me in? Thanks!

nobody*s_perfect · ‎02-08-2022

eBay has decided that the threshold for Missouri is $1200.

wildpitchsports · ‎02-08-2022

The Federal threshold for a 1099K trigger for sales in 2022 is actually down to $600 , that was signed into law in March of 2021.

Some states have lowered their thresholds for the 2021 tax year as well.

christine0186 · ‎02-08-2022

Thanks, nobody's perfect and wild sports. I was unaware of this! I tried to contact ebay customer service but you probably know they don't have a working phone number anymore (that I could find on their website or Google) and chat routed me to email only. So I sent them an email about this and hoping to hear back soon. I thought it was a mistake but from what you're saying it's not. I already filed my taxes and was hoping I wouldn't have to amend them but sounds like I'll have to do so....**bleep** video cards I sold here - Lol!

I've been selling on ebay for 15 years+...amazing what one figures out as you go along!

Cheers!

-Christine