1099

[msbicjev]

In the future please don't send me a 1099, for the year, unless I sell the $20,000.  the IRS wants to know about. The IRS does not require 1099 for less than that.  Thank you.

[sapphire_studio]

No matter how much money you make you are required to file taxes on any ebay earnings. You should be glad you are in a state with a lower threshold so that you get the 1099-k form because it makes it a lot easier to do your taxes 🙂

[toysaver]

If you've been selling on eBay without reporting to the IRS don't be surprised when you get a letter claiming failure to file asking for all past due tax obligations plus interest.  

[lakefor94]

@msbicjev 

Time to be forking over the money for income tax. You ain't skating this year.

[bonjourami]

Just be grateful you've gotten away with not reporting your Ebay income for twenty four years.

[chapeau-noir]

So I work hard at the day job and pay taxes, you sell tens of thousands online and get to cloak your earnings? What are you, a wanna-be billionaire?

[mam98031]

@msbicjev 

This is the Ebay Community, made up of both buyers and sellers.  We don't have anything to do with when or if Ebay sends a 1099K to you or anyone else.

Your state requires Ebay to send you a 1099K when you sell at least $1,000 and 4 transactions.

Also keep in mind that with or without a 1099K you need to and are required to report all your income to the IRS every year.

I hope it all works out for you.

[gloryglorygifts]

If you received a 1099, you are over the threshold for sales in your state. Best to get an accountant to do your taxes and file your returns.

I think you are actually lucky that you got it, this way you don't get a notice 5 years from now looking for back taxes plus any fees and interest. Just a thought. 

[bonjourami]

"In the future please don't send me a 1099, for the year, unless I sell the $20,000.  the IRS wants to know about. The IRS does not require 1099 for less than that.  Thank you."

That $20,000 threshold you  refer to is when Paypal used to issue the 1099's. It doesnt mean you get to sell up to $20,000 before you have to report your earnings. Maybe you didnt understand that all income for the year should be reported, including any Ebay sales.

[toomuchstuffagain35]

Apart from the fact your state requires a 1099K at a (much) lower threshold, the "IRS wants to know about" all your income from those over 4k ebay sales.

[fashunu4eeuh]

Hi @msbicjev 

Best keep up with the latest laws governing such matters. In 2021, in a bid to improve the collection of income taxes, the powers-that-be turned their attention to an under-reported segment of the income-earning population—that of online-sales venues.

The American Rescue Plan Act (ARPA) was signed into law in August 2022. In it was a new provision that lowered the threshold for 1099-K income reporting from $20,000 and 200 transactions to $600 for any transaction.

For more information, see link below.

https://www.pwc.com/us/en/services/tax/library/american-rescue-plan-act-lowers-form-1099k-reporting-...

[mam98031]

---

@bonjourami wrote:

"In the future please don't send me a 1099, for the year, unless I sell the $20,000.  the IRS wants to know about. The IRS does not require 1099 for less than that.  Thank you."

That $20,000 threshold you  refer to is when Paypal used to issue the 1099's. It doesnt mean you get to sell up to $20,000 before you have to report your earnings. Maybe you didnt understand that all income for the year should be reported, including any Ebay sales.

---

The 20,000 threshold and 200 transactions is the CURRENT IRS standard for issuing a 1099K.  States however can have their own rules on when a 1099K needs to be issued.  The OP is in one of those states.

Next year the threshold will be different for the IRS standard, we just don't know what that will be yet.

Too many people thought they could sell until they were just short of the IRS requirement for the 1099K and they wouldn't have to claim the income.  I really never understood that.  The 1099K is merely a Form and nothing more than a form.  It does not nor has it ever set the threshold for reporting income.  That isn't even the purpose of the form.

Sellers that operated that way are waking up to realize this and some back taxes that need to get paid too.

[mam98031]

Actually @fashunu4eeuh this OP has a state requirement that is much lower than the IRS requirement.  So it is likely they have actually received a 1099K from Ebay for at least a couple years now.  

Unfortunately like some others it appears this OP thought if they didn't get a 1099K they would not have to report their income.  We know that is not true and I think the OP is now finding that out.  Our income has always been reportable with or without a 1099K.

[mixedbagmosaic]

I think you gave her a heart attack!

[chapeau-noir]

I think the OP was tr0lling us. Who posts something like that?

[mixedbagmosaic]

Someone who doesn't know better 😉